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.”
