Our industry is using technology like never before to reimagine the consumer claim and repair experience.
Digital capabilities are informing, improving and most importantly, helping reduce the overall time from when a loss occurs to when a vehicle is repaired and ready for pickup, which is becoming ever more critical as vehicle complexity, repair costs and cycle time grow.
Improving Consumer Satisfaction Amid Rising Repair Costs
According to the J.D. Power 2018 Auto Insurance Study, better access to online self-service tools through insurer websites and mobile apps has helped drive auto insurance customer satisfaction to its highest level since CY 2000.
CCC Information Services, Inc. is seeing strong evidence of the shift toward digital in claims, as many carriers are supporting the capability for consumers to take photos of their damaged vehicle and use those to generate the estimate of record. This removes the need to schedule an appointment at a drive-in, or for an adjuster to come to the vehicle owner’s home or work for the inspection.
The Sweet Spot
Over the last 15 years, repair costs for the industry have steadily shifted into higher dollar ranges with fewer coming in below $1,000, and roughly 40% now falling between $1,000 and $4,000. Repairs between $3,000 and $4,000, for example, grew from 6.6% of the volume in CY2004 to 8.3% by CY2018. These are historically the claims where we have seen the highest productivity and customer satisfaction index (CSI). By improving cycle time for these losses, both could see even better scores, and ultimately help lift overall shop productivity and CSI for both the repairer and insurer.
Technology is Making a Difference
For drivable and non-drivable vehicles, the number of days from loss to loss report was dramatically lower by nearly 90% for telematics-enabled claims. We found customers with the telematics-enabled claims also chose photo estimating as the initial method of vehicle inspection more often, resulting in an added reduction in the number of days from assignment sent to estimate upload.