ARC360 news round up – Friday 31 March 2023  

Zurich shows support for New Generation event

Zurich Insurance Group has shown its support for ILC’s New Generation in Claims event by both sponsoring the occasion and contributing expert insight to the day’s agenda.

The event, which takes place on Wednesday 26 April at etc.venues, Manchester sees Zurich join Enterprise and Wiser Academy (headline) as sponsors to help shine a light on the need for both retaining talent and attracting new people within the insurance claims sector.

RSA to exit UK motor insurance market

RSA has announced it will exit the UK personal lines motor market.

The decision is one of a range of initiatives intended to make its UK and international business more sustainable.

RSA, a subsidiary of Intact Financial Corporation, currently represents about £120m of annual motor premium. It has further announced it will introduce MORE THAN direct motor customers to Swinton Insurance upon renewal.

Government launches ZEV consultation

The government has launched a consultation about plans to introduce a new ZEV mandate next year to drive the industry’s transition to net zero.

The proposed mandate will require 22% of new cars made to be zero emission models by 2024, with that rising to 80% in 2030 and 100% in 2035. For vans, the minimum target percentage is 10% in 2024, 70% by 2030 and 100% in 2035.

The government has also unveiled a robust package of measures to drive the shift to electric vehicles, which includes a further £381m to develop the public charging infrastructure.

New Generation in Claims Interview:
Toby Haggitt, Implementation Manager, Solera|Audatex

“With the motor industry’s shift to ‘smarter’ vehicles, and every new vehicle on the road now fitted with varying levels of ADAS, we’re very much at crossroads.”

Copart announces new Chamber of Commerce collaboration

Copart recently took part in a Chamber of Commerce networking event to discuss skills and training challenges and explore potential solutions to the skills gap.

This ‘Skills and Training: the Employers Voice’ event was held in the Digital Aviation Research and Technology Centre at Cranfield University, when cross-sector leaders shared insights around best practice, skills gaps, health and wellbeing, and employee retention.

Toyota updates injury analysis solution

Toyota has enhanced its vehicle safety research with further developments to Total Human Model for Safety (THUMS), its software programme for computer simulation and collision analysis.

The latest advances take into account changes in posture when drivers are using automated driving systems, with specific modelling for men, women and children and more accurate analysis of the geometry and properties of key body parts, including the pelvis, abdominal organs, spine and ribs.

Motor dominates GI complaints to Ombusdman

The Financial Ombudsman has received more than 55,250 complaints about motor insurance in the last five years.

This equates to nearly a third (30%) of all general insurance complaints referred, which is nearly double the percentage of the next product line.

Meanwhile, complaints about motor insurance products rose a worrying 49% from the last quarter of 2021 to the same period in 2022, with more than 3,800 complaints recorded.

Car production rallies as supply constraints ease

The Society of Motor Manufacturers and Traders has announced that UK car production rose 13.1% in February to 69,707 units. Meanwhile, the transition to hybrid, plug-in hybrid and battery electric vehicles continued with combined volumes surging 72.2% from 15,905 to a total of 27,392 units and accounting for two in five (39.3%) cars produced in the month.

Against this however, commercial vehicle production fell by 21.6% in the second month of the year to 6,491 units.

e2e to unveil new reclaimed parts data

e2e Total Loss Vehicle Management has conducted in-depth research into the use of reclaimed parts by insurers and bodyshops.

The e2e Reclaimed Parts Report will be published on 4 April.

Green parts policy wins sentimental argument

Ageas’ Green Parts Programme helped AA Insurance Services policyholder Sue Sheldon continue to drive a car bought for her by her late husband after she was involved in a collision.

The use of green parts meant repair was economically viable, while using reclaimed parts also reduced the impact on the environment.

ADAS challenge ahead

Steve Gooding, Chief Executive of The RAC Foundation, has warned of a significant challenge in moving from assisted driving to full autonomy, suggesting the gap between the two is greater than many believe.

He said, “In reality, there’s a massive step-change between being a full-time passenger and a part-time driver.”

Suzuki introduces extended warranty

Suzuki GB has introduced a service-activated warranty to owners of cars and motorcycles aged up to seven years or 100,000 miles.

The free warranty will be offered to drivers of any vehicle that undergoes a service at the end of its three-year, 60,000-mile period, and will remain in place until the next renewal.

Enterprise & NFU take Gallup gongs

Enterprise Holdings and NFU Mutual have received Gallup Exceptional Workplace Awards for 2023.

The awards recognise commitment to employee engagement and flexibility around hybrid working.

It is the eighth time NFU have picked up the award.

Vertu expands repair capacity

Vertu Motors has enhanced its repair capacity by increasing its mobile alloy wheel repair fleet to 32.

Neil Hall, Group Bodyshop and Cosmetic Repair Director, said, “We are constantly evolving and listening to our colleagues to improve. This [van] is version four so a big thank you to the Smartfix team and On Board Power.”

NBRA director takes the industry to young people

NBRA Executive Director Chris Weeks promoted the automotive repair industry to more than 40 pupils at a school in Northampton this week, reporting that around 90% subsequently signed up as AutoRaise cadets with around a quarter expressing in interest in an apprenticeship.

Autoglass partners School of Thought

Autoglass has announced that 14 colleagues have signed up to become STEM ambassadors, in partnership with School of Thought.

As ambassadors, they will promote STEM subjects and potential career pathways to young people at schools, colleges and in the wider community.

Audit treble

Three repair sites have recently celebrated successful Kitemark BS10125 audits. They are Steer Automotive Group repair centres Steer Stockton and Steer Washington, as well as Balgores Motor Group Witham.

The BS 10125 standard for vehicle repair is recognised by insurers, manufacturers and work providers.

Gen Z divide revealed

New research from Deloitte has revealed a disconnect between Generation Z employees and their employers.

Its research found that Gen Z value mental health and empathy more than their bosses do, and also believe both have a significant impact on engagement and work quality.

Charity match held in memory of friend and colleague

Plunky’s All-Stars 2023 charity football match, which will take place at Peterborough United’s ground on 1 June, is nearly a quarter of the way to its fundraising target of £20,000.

That match is raising funds for The Norfolk Hospice Tapping House and will be played in memory of Mike Yorke, who passed away last December after a long battle with a brain tumour.

Mike played in every single Plunky’s All Stas game apart from the 2022 match.

People

David Palmer has been named Preparation and Aftersales Director at Cazoo.

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Car production rallies as supply constraints ease

The Society of Motor Manufacturers and Traders has announced that UK car production rose 13.1% in February to 69,707 units, with supply chain pressures easing.

Meanwhile, the transition to hybrid, plug-in hybrid and battery electric vehicles continued with combined volumes surging 72.2% from 15,905 to a total of 27,392 units and accounting for two in five (39.3%) cars produced in the month.

Against this however, commercial vehicle production fell by 21.6% in the second month of the year to 6,491 units.

Mike Hawes, SMMT Chief Executive, said, “February’s growth in UK car production signposts an industry on the road to recovery. The fundamentals of the sector are strong; a highly skilled workforce, engineering excellence, a sector that is embracing new electrified vehicle manufacturing and wide ranging capabilities in the EV supply chain. To take advantage of global opportunities, however, we must scale up at pace and make the UK the most attractive destination for automotive investment by addressing trading and fiscal costs and delivering low carbon, affordable energy.”

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Charity match held in memory of friend and colleague

Plunky’s All-Stars 2023 charity football match is nearly a quarter of the way to its fundraising target of £20,000.

The game, taking place at Peterborough United’s ground on 1 June, is being held this year in support of The Norfolk Hospice Tapping House, a charity based in West Norfolk that provides care and support to those living with, or affected by life limiting illness.

Last year the charity match raised a record £18,500 for Brain Tumour Research and to date Steve Plunkett’s fundraising initiative has raised over £63,000 in the last eight years.

He said, “We have played at Wolves, Norwich City three times, MK Dons and Peterborough United’s grounds three times, having a lot of fun and raising some desperately needed funds for the various charities along the way. We’re still looking for donations and sponsorship for this year’s match, and also raffle and auction prizes. Every little bit helps.”

Meanwhile, this year’s match will be played in memory of Mike Yorke, who passed away last December after a long battle with a brain tumour. He played in every single Plunky’s All Stas game apart from the 2022 match.

To show support, click here to go visit the justgiving page.

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Government launches ZEV consultation

The government has launched a consultation about plans to introduce a new ZEV mandate next year to drive the industry’s transition to net zero.

The proposed mandate will require car manufacturers to reach 22% of new cars zero emission models by 2024, with that rising to 80% in 2030 and 100% in 2035. For vans, the minimum target percentage is 10% in 2024, 70% by 2030 and 100% in 2035.

The government, which has committed a further £381m to develop a charging infrastructure, has also restated that e-fuels will not be considered as an alternative.

Transport Secretary Mark Harper said. “Transport is one of the most important sectors for achieving net zero by 2050, and so we must accelerate our efforts to decarbonise how people get from A to B while growing our economy and supporting thousands of green jobs.”

Mike Hawes, SMMT Chief Executive, said, “While the proposals rightly reflect the sector’s diversity, late publication and lack of regulatory certainty make product planning near impossible, and the continued lack of clarity as to what technologies will be permitted beyond 2030 undermines attempts to secure investment.

“Measures to improve the customer charging experience are a step in the right direction, but the fact that contactless credit or debit card payments will not be available on the vast majority of public chargers is a major failing that will significantly disadvantage EV drivers. Ultimately, for this mandate to be successful, infrastructure providers must now turn promises into investment and catch up with the commitments of vehicle manufacturers.

“The UK new car and van market is already moving at pace towards electrification, the result of massive investment by manufacturers and increased consumer demand. If the UK is to lead the global race to zero emission mobility, however, it must go further and faster in unlocking infrastructure investment, incentivising EV ownership and helping ensure more of these vehicles are developed and built in Britain.”

The consultation is due to close on 24 May.

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RSA to exit UK motor insurance market

RSA has announced it will exit the UK personal lines motor market.

The decision is one of a range of initiatives intended to make its UK and international business more sustainable.

RSA, a subsidiary of Intact Financial Corporation, currently represents about £120m of annual motor premium. It has further announced it will introduce MORE THAN direct motor customers to Swinton Insurance upon renewal.

The announced initiatives do not directly impact its personal home and pet insurance lines. Instead, RSA intends to improve segmentation in these areas and drive further growth through partnerships and ongoing investments in technology.

Charles Brindamour, Chief Executive Officer, Intact Financial Corporation, said, “When we completed the acquisition of RSA, we were clear that we would take necessary actions to drive sustainable outperformance in UK&I. Today’s announcement represents a further step in delivering against our strategic roadmap to optimise our footprint around personal lines Home and Pet, and our Commercial and Speciality lines businesses.”

Ken Norgrove, Chief Executive Officer, RSA UK & International, added, “Our primary focus now is on delivering an orderly transition that supports our colleagues and customers. We have incredibly talented people working in this business, and we’re committed to treating them with fairness and respect.”

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Motor dominates GI complaints to Ombusdman

The Financial Ombudsman has received more than 55,250 complaints about motor insurance in the last five years.

This equates to nearly a third (30%) of all general insurance complaints referred, which is nearly double the percentage of the next product line.

Meanwhile, complaints about motor insurance products rose a worrying 49% from the last quarter of 2021 to the same period in 2022, with more than 3,800 complaints recorded.

Building insurance accounted for 16% of all complaints received over the last five years with other product lines receiving large volumes of complaints over this period including travel insurance (12%), home emergency insurance (seven per cent) and home insurance (five per cent).

Across all product lines, 30% of complaints were upheld.

Insurance DataLab co-founder Matt Scott said: “These figures should be worrying news for the insurance industry, especially with the regulatory spotlight shining so brightly on insurers as they grapple with implementing Consumer Duty.

“The regulator has already highlighted complaints figures as an area insurers should be looking at when analysing customer outcomes as part of their Consumer Duty monitoring, and our figures reveal a wide range of results – particularly when it comes to upheld rates.

“The best performers in the market can have upheld rates as low as 10.5%. But at the other end of the market, we are seeing a number of insurers with more than 30% or even 40% of complaints being upheld in favour of the customer – this is clearly not good enough, and with Consumer Duty coming into force this July, insurers need to act fast to remedy this issue.”

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ARC360 News Round Up: Friday 24 March 2023

Vehicle technology and its influence on claims

Every aspect of the automotive aftermarket is being impacted by new technologies and safety systems within vehicles. Repairers need new skills and insurers need new products based on new parameters.

Here, partners Entegral, Enterprise and Repairify share their thoughts on how the constant evolution of technology is impacting their sectors.

Solera unveils new management solution

Solera has introduced a new comprehensive repair shop management solution – Identifix Shop Manager – to help repairers optimise their operations.

The cloud-based system suits bodyshops of all sizes and offers managers visibility into parts pricing, job tracking, and accounting.

Halo cuts ribbon on 20th site

Halo ARC has continued its rapid expansion with the launch of its 20th site.

The opening of Halo Lincoln means the group has expanded from 10 to 20 sites in just 15 months.

The big kick-off

Plunky’s All Stars 2023 charity football match will be played in memory of Mike Yorke, who played in all but one of the fundraising games over the last eight years.

More than £4,000 has already been raised this year for Norfolk Hospice Tapping House, which provides care and support to those living with or affected by life limiting illness.

Apollo retains PAS 2060 certification

Apollo Motor Group has been declared carbon neutral in accordance with PAS 2060 for the second year in a row.

Apollo is the largest repair group in the south of England with 19 sites.

Rye smiles

Rye Street Hoddesdon is celebrating after collecting a customer service award for achieving consistently hight CSI scores.

The LV= sole site was presented with the award by Myles Doran, Regional Network Manager.

Long-serving colleagues clock up 450 years collectively

Fix Auto Oswestry has recognised a group of long-serving colleagues who have collectively accumulated for than 450 years’ service to the company.

The multi-site business is celebrating its 50th anniversary this year and, incredibly, 30% of its 50-strong workforce have recorded 20 years’ service or more.

Controlling costs in the vehicle tech era

In 2019 about 31 million vehicles included some level of automation. That number is expected to rise to 54 million next year as the widespread development and adoption of vehicle technology continues unabated.

With evolving powertrains and materials, the strain on repair prices is ever-greater.

In this contributed feature, Solera|Audatex examines the factors driving up motor claims costs, and considers how its technology can help insurers mitigate some of these pressures.

Double delight for Fully Charged

One of the world’s largest home energy and electric vehicle shows will double up this year with Fully Charged South taking place in Farnborough from 28-30 April and Fully Charged North launching at the Yorkshire Event Centre in Harrogate from 19-21 May.

The events are sponsored by ElectriX, which supports drivers wishing to go electric, and powered by LV=General Insurance.

Academy applications flood in

Davies Motor Academy has reported a rush of applicants for its first round of positions within its insurance claims programme. More than 40 external applications have already been received, with another week remaining for internal applicants.

Davies Group will shortly host assessment days and interviews to select the final six.

Thatcham Research launches EV initiative

Thatcham Research launched it five-month research project into the challenges posed by the increased uptake of electric vehicles with a workshop day hosted by Innovate UK.

A broad section of industry stakeholders from salvage to carmakers, insurers and representatives from the Office for Zero Emission Vehicles considered the unique challenges of managing accidents involving EVs and failures in the claims flow.

Autovogue in style with BS certification

LD Autovogue and Asset Transport Vehicle Logistics has retained it British Standard Kitemark for Vehicle Accident Repair after a rigorous audit process.

Ben offers single course placements

Automotive charity Ben has announced that single placements are now available on its top three training courses: Fuelling your well-being; Managing Mental Health in the Workplace; and Mental Health First Aid.

Perfect score for Clarke & Evans

Birmingham-based independent service and repair centre Clarke & Evans Accident Repair Specialists has achieved 100% in its most recent Volkswagen Group audit.

Cars2Click signs global deal with Polestar

International online vehicle trader Cars2Click has signed a new agreement with EV manufacturer Polestar to implement a new asset management solution.

The solution, End2end Remarketing ECOsystem, delivers 360-degree management of Polestar vehicles from when they are sold to when they are returned to users, while its AI data will identify the supply and demand balance in different global markets.

Feature interview: Phil Peace, Managing Director (SVP) International of Repairify

The level of technology within vehicles now means that understanding what needs repairing is the first critical step in returning the vehicle to its pre-accident condition. But, as in-vehicle systems continue to develop, the aftermarket risks being left behind.

Here, we speak to Phil Peace, Managing Director (SVP) International of diagnostics and calibration expert Repairify, to understand the extent of the challenge facing repairers and insurers, and how its technology can improve both safety and efficiency.

People

Ryemarc, the holding company for Motofix Accident Repair Centres, has appointed Gethyn Davies as Executive Director.

WorldSkills UK has appointed Audrey Nelson, Professor Sean Wellington, Justin Rix and Mark Farrar as directors to its board.

Callum Langan has been named new Managing Director at sopp+sopp.

Enterprise Holdings has appointed Gavin Williams as Repair Operations Manager UK & Ireland.

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Controlling costs in the vehicle tech era

In 2019 about 31 million vehicles included some level of automation. That number is expected to rise to 54 million next year as the widespread development and adoption of vehicle technology continues unabated.

With evolving powertrains and materials, the strain on repair prices is ever-greater.

In this contributed feature, Solera|Audatex examines the factors driving up motor claims costs, and considers how its technology can help insurers mitigate some of these pressures.

Vehicle technology has become ever-more complex and expensive, meaning that insurers must work smarter than ever to keep claims costs manageable.

In the repair sector, bodyshops have had to invest in increasingly sophisticated diagnostic equipment in order to interpret vehicle on-board computers; according to Saga Car Insurance, 35% of the cost of a new car covers semiconductors and microchips alone.

Meanwhile, autonomous braking systems, safety sensors, lane departure warning systems and myriad other driver assistance technologies all pushing up the cost of repairs. According to the Association of British Insurers, repair prices have risen by up to 20% in the past year, while the value of used vehicles increased by 19% in the year ending June 2022.

On top of this, parts and components are also more and more complex and expensive, with a 2022 survey of motorists by bumper.co.uk revealing that drivers had spent £18.5bn of their own money in car repairs in the previous 12 months.

This situation will only be complicated by the growth in electric vehicles which, while simpler in terms of moving parts, will have proportionally more high-tech components, and require new battery diagnostic equipment.

However, insurers can mitigate some of these cost pressures by eliminating waste and inaccuracy and improve repair/replace ratios using Solera|Audatex Qapter Intelligent Triage and Estimating.

The Qapter modules slot seamlessly into existing estimating workflow. They combine machine learning, computer vision, and repair-recognition algorithms, drawing rules from 340 million claims to automatically detect damage from supplied images. Qapter can produce a vehicle repair estimate with unmatched speed and accuracy and at the same time give the VDA the ability to edit this as needed. Qapter can even be used to compare manual calculations to an AI-based estimate.

Additionally, Qapter can, if needed, guide the customer to take and upload high quality images, making it possible to:

  • identify probable total loss claims early
  • identify whether the vehicle is likely unsafe to drive
  • generate a list of potentially required parts early in the process (facilitating triggers such as Total Loss Avoidance programmes)
  • recommend an optimal next step, whether this is to book repairs, salvage, or further inspection.

Qapter therefore cuts call handling time substantially from an average of 30 minutes, and it increases the efficiency of the claims progression, eliminating unnecessary inspection or delayed total loss settlements. The Qapter system is backed by an unprecedented and continually refreshed claims database and the AI powering the solution is constantly learning.

This means that repairers and insurers can have greater confidence in the accuracy of their initial estimates, knowing that each estimate is based on the exact make and model of vehicle, and that increasing costs will be reflected in the system’s knowledge of the contemporary automotive market.

Neil Garrett, Sales Director for Solera|Audatex, said, “High inflation and the increases in vehicle complexity are together putting insurers’ cost bases under intense pressure. ABI reports that motor insurance premiums rose by eight per cent in the final quarter of 2022 as a result. It is more important than ever that insurers use smart integrated technology solutions like Qapter to cut costs and improve the rapidity.”

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Feature interview: Phil Peace, Managing Director (SVP) International of Repairify

The level of technology within vehicles now means that understanding what needs repairing is the first critical step in returning the vehicle to its pre-accident condition. But, as in-vehicle systems continue to develop, the aftermarket risks being left behind.

Here, we speak to Phil Peace, Managing Director (SVP) International of diagnostics and calibration expert Repairify, to understand the extent of the challenge facing repairers and insurers, and how its technology can improve both safety and efficiency.

Can you tell us a little about Repairify in terms of your mission and services?

Our mission is to make repairs simple for our customers with the help of advanced tools and remote diagnostic support.

As a business we are committed to empowering customers to repair electronic vehicle systems safely to OEM specifications post collision, enabling repairers to return vehicles to the road as quickly as possible, minimising downtime.

To do this we offer a wide variety of advanced automotive services and diagnostic tools, including the asTech Remote Diagnostic Device and the Digital ADAS Calibration Unit. They have been designed, developed and manufactured to address the constantly evolving needs of the bodyshop, while also maximising their capability.

Who are your customers?

Our customers are vehicle repairers, be it mechanical, glass or bodyshops and they can be any size from a single to a multi-site operation.

How is increasing technology within vehicles impacting the claims process?

There are several factors with vehicle technology that are impacting the claims process:

  • Connected cars and access to data directly from the OE is starting to accelerate the FNOL process.
  • AI and machine learning is helping to better identify the damage at the point of estimate, which is accelerating decision making and enabling more effective decisions related to repair.
  • Creating more engaging apps by the insurers is helping the customer journey as the customer no longer uses these purely in the claim. Consolidation of legacy systems into platforms helps support this with data from various sources being available in a single place.

In terms of EVs, we understand from our insurer clients that whilst you would expect the technology on EVs to reduce incidents, the volume of incidents is higher. This is being put down to consumers not being used to the vehicles and the speed.

In addition, there is the complexity in the repair. An example of this is if the battery unit is damaged, it may mean that the vehicle cannot be repaired, or it has to go to a main dealer, which adds time. Feedback from these repairs is critical in underwriting.

On the ADAS side of things legislation is driving change and more and more vehicles now have some level of ADAS within the vehicle. The changing legislation in Europe means that by 2025 all vehicles must have automatic braking and as such will have a camera, radar or lidar depending on the system. Therefore, having the equipment or ability to calibrate these on site will speed up the repair process and enhance the customer journey. There is a lack of awareness and understanding in the repair network currently and it is critical that we support appropriate training for these new technologies.

How does your technology overcome these challenges and add efficiency to the motor claims/repair process?

Principally our technology enables the vehicle to be repaired effectively and the vehicle retuned to the road safely. Speed is of the essence to minimise repair times and costs so our data is extremely important in identifying what ADAS systems are on the vehicle.

There are two simple ways our innovative solutions are streamlining the claims process. The first is we reduce key-to-key times, which is what all repair shops aim to do. The way we achieve this is because our solution enables the vehicle to stay on site to do the work, so the business does not have to move it to a dealer or bring in a sub-contractor to do the work.

The second is the integrated reporting ensures the technician can easily access the information required for the job. 

Can you talk us through Repair On Demand?

Repair on Demand is our terminology for Remote Diagnostic Services. This is used in three scenarios; if the vehicle has a secure gateway (which is more and more common in new vehicles) the aftermarket tool software will not allow the technicians to do what they need to do and if the work provider or repairer wishes to undertake the process using an OE tool.

The technician plugs the VCI into the OBD port on the car and they either log into our app and submit a job and initiate a chat with one of our technicians or they call in and speak to one of our technicians. Ideally, we prefer using the chat function as this provides a comprehensive audit trail for our customers.

Once the job is submitted, our technician picks this up on the system and automatically connects to the correct OE tool. The Repairify technician and the bodyshop technician then work through the calibration or programming task. In many cases, the bodyshop technician can be getting on with other tasks whilst the process is completed. After completion we provide a report to the customer detailing what has been done along with the invoice for the job.

Our process is fully warranted, and our insurance covers the bodyshop or repairer as well as ourselves providing peace of mind to both repairers and work providers.

How does asTech All-in-One streamline the repair process? 

The asTech All-in-One streamlines the repair process because it is a single solution that provides both local diagnostics and calibration services (via a tablet). It also includes the asTech Connect device that provides the user with the ability to access Repairify Remote Services over the air. It is supported by Repairify’s IMI-trained technicians and manufacturers’ original equipment, so calibrations can be done quickly, and key-to-key times are reduced.

What do you perceive to be the main obstacles to a smooth motor claims journey?

The number of suppliers involved in a single claim and the current lack of cohesion in consolidating information into single systems or apps to provide updates to the consumer, means that it’s a very poor customer journey in many cases.

What are the major trends impacting motor claims today?

There are various macro and micro issues affecting claims, but the following are the key drivers:

  • New vehicle supply issues have resulted in used car costs rising, the impact of this is that in theory there are less write offs as the pre-accident value is higher, making it more economical to repair the vehicle
  • Lack of courtesy cars – increasing repair lengths
  • Supply chain issues around parts supply remain, again lengthening the time and cost of a repair
  • Covid and Brexit have resulted in a lack of quality staff which has meant that there is excess capacity in many bodyshops again increasing the length of repair
  • Vehicle complexity has increased meaning it has become more difficult to repair vehicles requiring greater knowledge and understanding of electrical systems.

What will the motor claims journey look like in five years’ time?

If only we had a crystal ball.  However, we expect the following:

  • A more seamless journey, information from the connected car will be made available via consolidators so that the FNOL process will be accelerated
  • Platform providers will consolidate information to improve the customer journey
  • AI and machine learning will accelerate decision-making and again improve the customer journey
  • Increased technology and ADAS systems should, in theory, reduce the volume of repairs, but those repairs will become more complex.

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Vehicle technology and its influence on claims

Every aspect of the automotive aftermarket is being impacted by new technologies and safety systems within vehicles. Repairers need new skills and insurers need new products based on new parameters.

Here, ARC360 partners Entegral, Enterprise and Repairify share their thoughts on how the constant evolution of technology is impacting their sectors.

Entegral:

Automation within the modern vehicle is becoming more prevalent, from notifying your breakdown provider of changes to the car’s performance to understanding when an impact has occurred, where and potentially how severe.

Data collected from the car is instantly obtainable, which in turn leads to shorter claim length as the knowledge of the impact is already with the insurer. The data sent by connected cars is more accurate and more detailed;this allows insurance companies to better understand customers and their behaviour and, based on this information, offer products that are better suited to their needs, as well as more profitable.

In terms of the repair, the more information the car can give on the area impact – severity, and potential parts replacement – the better equipped the repairer is to pre-estimate and pre-order, so the customer is without their car for the shortest time possible.

Imagine if the vehicle could notify the insurer, the recovery agent (if undriveable), and the rental firm for an immediate mobility solution and the bodyshop which will carry out the repairs. Claim length and repair length would benefit from this exponentially.

The future vision is for the vehicle to notify al providers within the claim to create a repair journey that fits the customer’s needs.

Entegral provides this type of technology today and we work closely with the repair community constantly striving to improve connectivity, helping the industry work more fluently.

Enterprise:

Vehicle technology is helping to create a seamless, end-to-end digital claims experience for the customer, delivering fast and efficient service at a critical time, just after a collision.

Increasingly, new cars are built with in-vehicle technology that can detect accidents and collision damage and trigger alerts automatically. These automated notifications enable instant support for the driver, as the in-car data can be communicated through the appropriate claims routing and assists the customer in getting the service they need when they need it, be that roadside recovery, repair services or mobility.

Vehicle technology is leading to industry-wide discussions over data capture and which organisation is best placed to facilitate the first notification of loss communication with the driver; many manufacturers are keen to manage the claim directly and ensure repairs are put through their own bodyshop/dealership networks.

There’s also great interest in vehicle technology that improves the replacement car experience from all parts of the claims ecosystem, notably amongst breakdown assistance and insurance providers as well as bodyshops and dealerships.

Some bodyshops that see higher volumes of fast-repair business are supplementing their traditional daily rental or courtesy car solutions with what we term ‘automated rental’. This is where we locate a suitable vehicle at the bodyshop or on the street that customers can access with an app 24 hours a day, including out of office hours.

It means drivers can take the vehicle for just a few hours or days, which can help to avoid additional cost: for example, if someone lives in an area with resident parking restrictions. Our in-car technology enables drivers to book and access the vehicles directly 24/7 and can help provide extra mobility options at pinch points.

Naj Khan, National Sales Manager – Insurance, Manufacturer, Assistance & Dealership Division at Enterprise, said, “There is no doubt that as cars become more connected, the options available to enhance a driver’s experience will only increase.”

Repairify:

Vehicle technology is changing and changing quickly. When it comes to ADAS and autonomy, legislation is driving change in Europe and by 2025 all vehicles must have automatic braking and as such will have a camera, radar or lidar depending on the system.

As adoption of this technology accelerates, the independent aftermarket faces a significant challenge keeping up in terms of both skills and certification, and already there is a lack of awareness and understanding of what is required; less than five per cent of technicians within the automotive aftermarket are certified so it is critical that we support appropriate training.

Phil Peace, Managing Director (SVP) International, said, “We are there when the shop has a problem by guiding them through the process using 99% OE diagnostics equipment. We can log into the car remotely, scan the car, analyse fault codes and then hold the technician’s hand through the repair to make sure the car is repaired to its pre-collision state.

“For insurers, we provide the reassurance that if Repairify has been involved in the repair the vehicle scan has been completed by trained technicians using the most up-to-date OE equipment.”

Looking further ahead, Phil said, “We’re already seeing online updates on vehicles, and what we’ll see in the future is viral updates. This means that your car could automatically take updates from another vehicle of the same brand simply by parking alongside it.

“I think insurers might have to start insuring cars not just on the value but on the build specification – in other words, what has been fitted to the car and what might be added to it in the future.”

If you would like to contribute to April’s feature, Supply chain partnerships for success, or contribute to our growing content output in another way, please email alanfeldberg@iloveclaims.com

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