Trust in AI-driven car repair, claims soars

Insurance customers are ready for digital options and industry decision makers are optimistic toward AI objectives, though more needs to be done to realise the value of tech for stakeholders and customers, industry heavyweight Solera says.

A Solera survey of senior decision makers from over 500 car insurers, body shops and dealer networks, and 1500 consumers, across the US, Europe and Asia Pacific found over a third of claimants had completed their motor claim without speaking to a person and over half took images of their vehicle and uploaded them onto an insurer’s platform.

Trust in AI-driven claims and repairs soared to 79% while 92% of consumers called for digital claims solutions, and there was rapid acceleration of AI adoption across the auto industry to deliver on consumer expectations.

“The message is clear. Now more than ever, organisations must leverage first-class technology partnerships to streamline this transition and maximise the return on AI investments,” VP Industry Relations Bill Brower said.

“Digitisation is now an integral and expected part of the claims cycle … for digital convenience, speed, and accuracy. It’s clear that those implementing cutting-edge technologies like AI will gain critical customer retention, efficiency and resilience.”

Texas-based Solera, which bought Brisbane-based insurtech ENData last year, found half of consumers now desire fully digital self-serve experiences and 43% prefer a hybrid model blending digital tools with human contact.

More consumers are now willing to change their insurance provider to one that offers digital claims technology (70%) and nearly two thirds would choose a repairer using AI to minimise the risk of error during work on their vehicle.

Solera says insurers saw the highest return on digital transformation projects through improved business resilience (58%), faster decision-making (55%) and increased staff productivity (55%) in the past year, and the use of digital claims technology has increased rapidly.

While cost is a barrier, Solera says there is a clear path for future AI investments and nearly two thirds of global car insurers and 43% of repair shops and car manufacturers are highly confident their AI goals will be met within the next year.

Solera says it serves over 300,000 global customers and partners in more than 100 countries.