Reimagining the relationship between insurers, repairers and salvage operators could cut claims times and costs, while also delivering a better customer experience.
Speaking to delegates at the inaugural ARC360/ILC Motor Claims Showcase event, which took place on Wednesday 29 June at the CBS Arena, Coventry, e2e CEO Jim Loughran said that moving from a linear relationship to a triangular one with data flowing freely between all points can unlock efficiencies, reduce costs and cut carbon emissions at the same time.
He said that with external pressures being exerted on the sector, now is the right time to make this shift and he identified two key areas of opportunity: reclaimed parts and integration.
Both, he believed, could help the industry overcome the challenges around capacity and slow key-to-key times caused by supply chain disruption. Underlining the extent of these challenges, he revealed that motor claims accident damage inflation had increased by more than 8.2% in the first six months of last year, while parts supply issues now mean a quarter of jobs are held up by more than a week.
A consequence of these logjams is that in February the NBRA reported that 10,000 vehicles were waiting to be brought in for repairs. This is neither sustainable for repairers, profitable for insurers or satisfactory for customers.
Laughran said, “So what can salvage organisations do about these logjams? Feeding reclaimed parts back into the insurance repair cycle helps unblock the parts logjam. As the largest UK-wide network of independent salvage operators, e2e has access to well over five million quality-graded warranty-assured reclaimed parts ready to be delivered overnight.
“Access to them has a multitude of benefits: it reduces the number of vehicles declared as a total loss due to being uneconomical; more policyholders retain their vehicles; key-to-key times are reduced; and credit hire and motor claims costs are reduced.
“So what’s blocking all these benefits becoming standard practice?”
Laughran suggested the problem was threefold – relationships, IT and processes.
He said the industry needs to move towards a tripartite relationship between insurers, repairers and salvage operators in which all three parts are joined together and data and information flows seamlessly between each. The result would be quicker order fulfilment, reliable inventory levels, and detailed parts information shared consistently and in real time between all those parties.
In terms of processes, he revealed that 30% of revenues are lost across all industries due to inefficiencies. He said this happens because processes are established to meet customer needs, those needs evolve and new processes are added on top of old one. In an industry with many process and applications, the scale of the problem is compounded.
“What’s required is a shift in attitude and a willingness to integrate systems, processes and thinking. Imagine what the reclaimed part system could look like with a tripartite approach: a seamless end-to-end process where the insurer, the salvage agent and the bodyshop are able to access real time, reliable, accurate, consistent data.”
He said this would improve underwriting, help bodyshops manage parts supply while also helping to detect fraud.
“Surely the time has come to collaborate and by improving our integration we will be able to offer policyholders and a more seamless and swift customer experience.”
The Motor Claims Showcase event was headline sponsored by Enterprise Rent-A-Car, along with fellow sponsors EDAM Group, Control Expert and Procurato.
ILC would like to thank its motor Corporate Partners: AkzoNobel; Audatex; Autoglass; CAPS; Carpenters Group; Copart; Davies Group; e2e; Entegral; Enterprise Rent-A-Car; Gemini ARC; GT Motive; The Green Parts Specialists; IAA; Innovation Group; S&G Response; Sherwin Williams; and thingco.
ARC360 would like to thank its Corporate Partners: Audatex; BASF; BMS; CAPS; Copart; EMACS; Entegral; Enterprise Rent-A-Car; Innovation Group; Mirka; NWVA; S&G Response; and Sherwin Williams, as well as Partners: asTech; The Green Parts Specialists; Indasa; and Prasco UK.
