Demand for digital claims accelerates

New research by Solera has revealed the increasing demand for digital-first automated claims, with trust in AI-driven claims and repairs soaring to 79% globally.

The annual survey also identified rapid acceleration of AI adoption among global car insurers, bodyshops, manufacturers and dealer networks.

Digital-first channels are revolutionising how claimants manage their motor claims and repairs. Nearly half (49%) of consumers now desire fully digital self-serve experiences and 43% prefer a hybrid model blending digital tools with human contact. As a result, more consumers are now willing to change their insurance provider to one that offers digital claims technology (70%) and nearly two thirds (65%) would choose a repairer using AI to minimize the risk of error when conducting work on their vehicle.

Bill Brower, VP industry relations, Solera, said: “Digitisation is now an integral and expected part of the claims cycle. Our research shows the pace at which consumers now actively seek automated self-serve models that meet their needs for digital convenience, speed, and accuracy. It’s clear that those implementing cutting-edge technologies like AI will gain critical customer retention, efficiency, and resilience.”

In the last year, repair shops and OEMs saw the highest return on projects through improved profitability (52%), increased staff productivity (50%) and employee efficiency (49%). Insurers saw the highest return on digital transformation projects through improved business resilience (58%), faster decision-making (55%) and increased staff productivity (55%).

Meanwhile, Solera’s survey also revealed over a third of claimants have now completed a motor claim without speaking to a person and over half have taken images of their vehicle and uploaded them onto an insurer’s platform.

However, car insurers continue to cite cost to implement and upskilling the workforce (73% and 65% respectively) as their biggest AI challenges. Repair shops and OEMs face similar drawbacks, as cost remains the largest barrier to AI (75%). But nearly two thirds (64%) of global car insurers and 43% of repair shops and OEMs are highly confident their AI goals will be met within the next 12 months, ranking 8 out of a maximum 10.