For auto insurers headed into the new year, there is a lot to consider. The market is changing, and there could be a global recession. Interest rates are on the rise, and so is the cost of replacement parts in the case of a claim.
Not only that, but the global supply chain and other factors make it unlikely that things will improve anytime within the next year. In fact, economists predict things will get worse before they get better. So why consider innovations now?
Insurance costs are rising
First, insurance costs are rising.
Manufacturing costs are higher and that means the price of parts increases as well. But in uncertain economic times, raising the rates of premiums can result in the loss of customers and hurt profit margins even more than rising costs.
Rising costs promote high turnover rates, and make it less likely for car owners to want to purchase new policies. Soaring insurance costs can even push drivers away from vehicle ownership altogether.
The age of vehicles is increasing
Car owners are keeping their old cars longer rather than upgrading to safer, newer models. This is driven mostly by a lack of availability, but the rising costs of insurance are also making drivers reluctant to apply for new policies, preferring to sit on what they have in place already.
Improving claims processes can keep costs down
One answer for controlling costs is efficiency. Making claims processes faster and more efficient can help reduce overhead and maintain profit margins.
And in an employee-driven economy, this enables companies to use the workforce they have more efficiently. Here are some ways to improve your claims process.
Ways to improve your process
There are three key ways to improve the claims process and make it more efficient for both the consumer and insurers.
- Claims reporting: This has often been a time-consuming and labor-intensive process involving phone calls, paper forms, or an inefficient online process. But with new innovations, claims reporting can take mere minutes, letting your team get to work on a solution right away.
- Estimates: Making estimates on repairs can also be time-consuming and involve contacting manufacturers, dealers, and shops to determine both the accuracy and quality of repairs. New technology that automates the adjustment and assessment of claims can smooth this process.
- Getting Repairs Done: Repair shops don’t want to wait on payments or question the amount they’re getting paid, and your customer wants to be back on the road as quickly as possible. Using technology to improve the repair workflow keeps your customers happy along with all of your other partners, and improves your process efficiency throughout.
The best of these systems incorporate new developments like AI and machine learning, which makes the process more accurate and cost-efficient.
How Solera can help
Solera has several tools that help auto insurers revamp their entire process. They include the following:
Our software makes easy work of this process. The database, one of the most complete anywhere, uses AI and over 4 billion that cover over 88% of vehicles on the road today and 99% of those in developed markets. It can make more estimates daily than previous systems did in a week.
Accurate preliminary estimates often come back in less than three minutes, and an astounding list of parts available worldwide (and their costs).
Once the claim has been filed and a preliminary estimate has been created, appraisers then have all the data they need to quickly review and in many cases approve the estimate right away. They can also then negotiate the best price with the repair shop using the data in the system.
Getting Repairs Done
Our solution Qapter works end to end to improve the overall workflow of claims from the start to the finish when the repair shop is paid and the customer picks up their vehicle. The best part of this system is that it is powered by AI, and continues learning and getting better day after day.
With one of the largest data lakes in the world and access to 40 years of repair data, you won’t find a better solution anywhere.
Consider New Innovations in 2023 and Beyond
The insurance industry is changing. Costs are rising and profit margins are as narrow as they have ever been. Raising rates and premiums is not the best option, and employee shortages and the skills gap have a huge impact on auto insurers.
New technology and innovation make it possible for you to meet these challenges head-on, using AI, machine learning, and some of the largest collections of big data in any industry. These innovations will not only make a difference in 2023, but will continue to drive profitability for years to come.
Ready to learn more and take the next step into the future? Check out Qapter and the benefits it can provide for you and your company today.