Consumer confidence in AI claims nearly complete
3rd May 2022Tweet
Consumer trust in AI-driven claims has risen to 79% globally, according to new research carried out by Solera Holdings.
The survey also revealed the growing demand for digital-first automated claims among car insurers, bodyshops and dealer networks.
It found that 49% of consumers now prefer a fully digital self-serve experience and 43% prefer a hybrid model of digital and human service. Further, 70% would change their insurance provider to one that offers digital claims technology (70%) and nearly two thirds (65%) would choose a repairer using AI to minimise the risk of error when carrying out repairs.
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.”
According to Solera data, 52% of repairers and OEMs saw profitability increase through greater implementation of digital solutions, 50% saw increased staff productivity and 49% reported an improvement in employee efficiency. Insurers saw the highest return on digital transformation projects through improved business resilience (58%), faster decision-making (55%) and increased staff productivity (55%).
Meanwhile, the survey also revealed that 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.
Despite these obvious wins, there is still some reticence in the market, with insurers citing cost (73%) and upskilling (65%) as barriers to implementation, with 75% of repairers and OEM’s claiming cost remains the greatest drawback.
Brower continued, “Covid was clearly the tipping point for customer adoption of digital services. Insurance customers are clearly ready for digital options especially when they have the opportunity to quickly access an adjuster in person as needed. The optimism among industry decision makers to achieve AI objectives is a huge vote of confidence, but more needs to be done to realise its value for stakeholders and customers. There are inevitable barriers in the journey towards full automation, but the message is clear. Now more than ever, organisations must leverage first-class technology partnerships to streamline this transition and maximise the return on AI investments.”Tweet