Solera Survey Reveals Surge in Trust and Adoption of AI-Driven Claims and Repairs as Providers Battle Global Economic Uncertainty
Westlake, Texas, April 26, 2022 – New global market research released today by Solera Holdings, LLC (“Solera”), the global leader in vehicle lifecycle management, reveals the increasing demand for digital-first automated claims, with trust in AI-driven claims and repairs soaring to 79% globally. The annual survey also identifies rapid acceleration of AI adoption among global car insurers, enterprise body shops and Original Equipment Manufacturers (“OEM”) dealer networks to deliver on consumer expectations.
Digital-first channels are revolutionizing how claimants manage their motor claims and repairs. Half (49%) of consumers now desire fully digital self-serve experiences and 43% prefer a hybrid model blending digital tools with human contact. As a result, more consumers are now willing to change their insurance provider to one that offers digital claims technology (70%) and nearly two thirds (65%) would choose a repairer using AI to minimize the risk of error when conducting work on their vehicle.
“Digitization is now an integral and expected part of the claims cycle. Our research shows the pace at which consumers now actively seek automated self-serve models that meet their needs for digital convenience, speed, and accuracy,” said Bill Brower, VP Industry Relations, Solera. “It’s clear that those implementing cutting-edge technologies like AI will gain critical customer retention, efficiency, and resilience.”
Digital transformation projects have been fast tracked to optimize processes and solve challenges accelerated by the global pandemic. In the last year, repair shops and OEMs saw the highest return on projects through improved profitability (52%), increased staff productivity (50%) and employee efficiency (49%). Insurers saw the highest return on digital transformation projects through improved business resilience (58%), faster decision-making (55%) and increased staff productivity (55%).
In line with this shift, the use of digital claims technology has also increased rapidly. Solera’s survey revealed over a third of claimants have now completed a motor claim without speaking to a person and over half have taken images of their vehicle and uploaded them onto an insurer’s platform.
Despite the progression of AI-driven claims and repairs, this ecosystem is still facing critical adoption barriers. Global car insurers continue to cite cost to implement and upskilling the workforce (73% and 65% respectively) as their biggest AI challenges. Repair shops and OEMs face similar drawbacks, as cost remains the largest barrier to AI (75%), up by a third year-on-year. However, there is a clear path for future AI investments. Now, nearly two thirds (64%) of global car insurers and 43% of repair shops and OEMs are highly confident their AI goals will be met within the next 12 months, ranking 8 out of a maximum 10.
“Covid was clearly the tipping point for customer adoption of digital services. Insurance customers are clearly ready for digital options especially when they have the opportunity to quickly access an adjuster in person as needed. The optimism among industry decision makers to achieve AI objectives is a huge vote of confidence, but more needs to be done to realize its value for stakeholders and customers. There are inevitable barriers in the journey towards full automation, but the message is clear. Now more than ever, organizations must leverage first-class technology partnerships to streamline this transition and maximize the return on AI investments,” added Brower.
For more information and findings click here.
About This Research Survey: Solera’s research series was conducted by Coleman Parkes in November-December 2021 with 1,500 tech-savvy consumers and senior decision makers from over 500 global car insurance companies, enterprise body shops and OEM dealer networks across North America, Europe and Asia Pacific.
Solera is the global leader in vehicle lifecycle management software-as-a-service, data, and services. Through four lines of business – vehicle claims, vehicle repairs, vehicle solutions and fleet solutions – Solera is home to many leading brands in the vehicle lifecycle ecosystem, including Identifix, Audatex, DealerSocket, Omnitracs, LoJack, Spireon, eDriving/Mentor, Explore, CAP HPI, Autodata, and others. Solera empowers its customers to succeed in the digital age by providing them with a “one-stop shop” solution that streamlines operations, offers data-driven analytics, and enhances customer engagement, which Solera believes helps customers drive sales, promote customer retention, and improve profit margins. Solera serves over 300,000 global customers and partners in 100+ countries. For more information, visit www.solera.com.
Media Contact: soleraPR@jargonpr.com
Solera: Amy Casas: email@example.com