A new solution has been released that predicts the impact inflation will have on repair costs.
The technology combines repair data from Audatex with machine learning and historical data analysis from experts at WTW to deliver unparalleled granularity.
Critically, the forecasts reflect the variety within the UK car parc. Previously, insurers applied a single inflationary figure across the board, but this solution forecasts rising costs for different vehicle categories and fuel types.
Stephen Cox, Head of Data Partnerships, Insurance Consulting, and Technology, at WTW, said, “This tool offers insurers a significant competitive advantage. In such a volatile market, access to accurate cost predictions gives underwriters the ability to avoid underpriced business, while also making their service more attractive to those consumers who will no longer face prices that are unduly high owing to being based on an average of all vehicles.”
Tom Hart, Head of Account Management at Solera Audatex, said, “By making it possible to differentiate inflationary allowances between vehicle makes and models, this new price inflation tool allows insurers to boost their bottom line and offer more competitive pricing to customers.”
