A global market research report by Solera Holdings reveals the increasing demand for digital-first automated claims, with trust in AI-driven claims and repairs soaring to 79% globally. The annual survey also identifies rapid acceleration of AI adoption among global car insurers, enterprise body shops and original equipment manufacturer dealer networks to deliver on consumer expectations.
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 minimise the risk of error when conducting work on their vehicle.
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%).
In line with this shift, the use of digital claims technology has also increased rapidly. Solera’s survey 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.
Despite the progression of AI-driven claims and repairs, this ecosystem is still facing critical adoption barriers. Global 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%). However, there is a clear path for future AI investments. Now, 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.