The Association of British Insurers recently released its findings for Q2 2023, and the cost of claims is rising quite dramatically. It says:
- Insurers paid out £2.4 billon in all motor insurance claims – theft, vehicle repairs, and personal injury – in the first quarter of 2023, up 14% on 2022.
- The costs of vehicle repairs leapt by 33% over the year since Q1 2022 to £1.5 billion, the highest figure since ABI started collecting this data back in 2013. This reflects rising costs, including energy inflation, and more expensive repairs.
- Labour costs increased by up to 40%.
- The cost of replacement parts for many popular cars have increased between 12 -21% over the past year.
Premiums have certainly risen to accommodate this hike in claims cost, but motor insurers run on tight margins. Ernst and Young’s 2023 report says that UK motor insurers had their worst year in a decade in 2022, with a loss-making Net Combined ratio of 109% – and those losses will continue in 2023.
It has therefore never been more important to streamline processes, identify and create efficiencies, and drive cost out of the claims process.
Solera | Audatex can help with that. It’s what we do every day for insurers and automotive repair businesses. Our global platform connects insurers with their chosen repairers seamlessly, giving real time communication and clarity. By working within a single platform, duplication, and the errors it can bring, are eliminated.
Claims handlers can appoint work, seek estimates, and action immediate decisions, such as courtesy or recovery vehicles.
Estimates are informed by AudatexEnterpriseGold’s (AEG) unrivalled library of parts information and cap hpi valuations, used to alert total-loss avoidance when the repair cost approaches pre-accident value.
Right first-time methodology is baked into the design of AEG, whether it be optimising repair over replace or connecting to your aftermarket parts supply chain, for immediate parts sourcing.
At the end of the process, quick, frictionless payments are enabled with AudaInvoice – which significantly reduces the manual, duplicated efforts required to get paid.
Altogether insurers achieve faster claims resolution and bodyshops get paid quicker, with the ideal outcome being a more satisfied happy customer experience for all.
Audatex Head of Account Management Tom Hart says: “We provide the platform and the tools for repairers and insurers to work seamlessly together. We support integrated workflows and align strategies to enable faster, accurate decision making, whilst driving down cost and removing friction from the process. We can’t control inflation, but with efficient processes and a reduction in waste, we can help you control costs.”