Solera says study of 'tech-savvy' consumers finds 76% trust AI auto claims, 73% would pick insurer with claims AI

Audatex parent company Solera last month announced a study of “tech-savvy” customers found a massive proportion would trust an automated claims experience.

Solera said it polled 1,500 “tech-savvy” consumers, a combined 500 bodyshops and dealerships and 500 insurers across the Asia-Pacific, Europe and North America in November-December 2021.

The research revealed Feb. 2 found the shoppers were extremely bullish around the tech.

Solera said 76 percent from the customers “trust automotive claims driven entirely by Artificial Intelligence,” and also the polling found “72% of respondents citing confidence in an automated claims and repair journey.”

Seventy-three percent of customers “would choose an insurer using AI to process claims quicker,” Solera wrote. Sixty-seven percent would change to an adversary insurer if it provided “a faster digital experience.”

And an even larger percentage — 78 percent — said they’d favor a body shop “that provides more digital channels to quote, book, and track repairs.”

More than 1 / 2 of the shoppers had already handled a minumum of one component of a car claim digitally, Solera said. Fifty-six percent had filed a claim online, and 51 percent tracked its status digitally.

“We've reached a place where leading information mill placing top priority on adapting and integrating leading edge technology to distinguish and optimize customer experience. Those that don't, will face competitive challenges,” Solera Chief Technology Officer Evan Davies said inside a statement. “This survey simply underscores what Solera has considered to be true for a while; automated processes have the power to increase client satisfaction and even customer retention.”

Solera strategy V . p . Driaan Du Toit said in a Feb. 22 interview that “there’s always been an emphasis on digitalization” of claims and repair processes at Solera.

The company had felt a shift towards AI and trust in the technology would develop over time, Du Toit said. But COVID-19 produced a “significant impact” on people’s views and trust, he said. Trends expected to occur within years shortened to months, he explained.

Du Toit likened it to companies which insisted on face-to-face meetings suddenly embracing Microsoft Teams.

Solera’s market research proved “quite conclusive,” based on Du Toit. Automation, digitalization and artificial intelligence were “required,” not really a mere “‘nice-to-have.'”

The study also “overwhelmingly” proved that “consumers would appear to wish it, and trust it,” Du Toit said.

People want safety and for their assessments and claims to be handled remotely, Du Toit said. He explained he thought this mindset would continue, for COVID-19 led people to realize the possibility of a risk they may not previously have thought about.

Insurers, shops and dealerships have given similar feedback as consumers, according to Du Toit. There’s an “overwhelming” desire for change fueling reliance and acceptance of claims AI and technology, he said.

He noticed that self-service had recently been increasing. “It’s not really a new idea,” he explained. Consumers were already acquainted with the idea of submitting photos for claims.

Solera described the pandemic because the primary reason for repair shop, dealership and insurer interest in going digital.

“The outcome of Covid-19 was the highest ranked driver of digital transformation for surveyed bodyshops and OEM dealers and car insurers ,” Solera wrote in additional polling information it provided.

Outside of that obvious answer, 36 percent of insurers cited growth as a motivator, 34 percent mentioned employee safety and remote work and 33 percent pointed to customer demand, Solera said in the Feb. 2 news release.

Shops and dealerships were built with a similar perspective on why they wanted to go digital. Outside the pandemic, 37 percent of shops and dealers were interested in the option for employee safety and remote work, and 37 percent pointed to customer demand. Nearly that proportion — 36 percent — expressed “the need to modernize the workflow,” according to Solera.

“Bodyshops and OEM dealers would anticipate seeing the highest return on AI in the next 12 months through increased employee efficiency and improved profitability ,” Solera wrote in the additional polling information.

Twenty percent of shops and dealerships felt they’d pursue preferred tax treatment with AI “at either the remote estimating or repair authorization & invoicing stage.” North American shops and dealers had the highest interest in using AI for remote estimating, with 24 percent of facilities agreeing with this particular response.

Twenty percent of insurers worldwide felt improved customer satisfaction and retention would prove the largest ROI — which was “ranked top” for North American insurers having a 25 percent response. Overall, insurers also saw “reduction in technology debt and improved supplier relationships ” as opportunities for ROI.

“Car insurers globally would turn to implement AI within the auto claims workflow in the fraud prevention stage , the full claims workflow and cash settlement to best achieve high returns,” Solera wrote in additional polling data provided. For United states insurers, AI in the full claims workflow was “ranked top,” at 23 percent.

Du Toit said the survey’s findings support Solera’s work on an end-to-end claims workflow using artificial intelligence, including first notice of loss, triage, total loss detection, AI photo estimating, shop selection, repair tracking and communication to the client.