How new technology is revolutionising motor insurance
Smart IT systems are now calculating claims costs and attributing fault for accidents without any human involvement, speeding up the resolution of claims.
Technology is set to transform motor insurance in the next five to 10 years, revolutionising both the claims process and repair.
Artificial intelligence (AI) is enabling insurers to evaluate vehicle damage at the scene of a collision, without the need for a claims handler or loss adjustor. By analysing millions of photos of vehicle damage and cross-referencing them with actual repairs, programmers have been able to create algorithms that can assess the scale of the damage and create a full estimate including recommended repair, paint, parts costs and labour hours.
The system can determine, for example, whether body panels can be repaired or need replacing, and in worse case scenarios it ensures that no total losses are sent to bodyshops.
Insurers adopt AI
Insurers such as Covéa in France, Talanx-Warta in Poland and Ageas in the UK are all using an AI system developed by Tractable to generate end-to-end repair estimates.
Adrien Cohen, co-founder at Tractable, said: “By harnessing AI at the beginning of the claims process to assess damage and generate estimates, we accelerate every part of it, creating efficiencies for the insurer and greater clarity for the policyholder.”
Telematics provides proof
Telemetry data, whether from connected vehicle technology or aftermarket telematics systems, allied to video film of crashes is also allowing insurers to attribute fault more swiftly and accelerate the resolution of claims. And AI is playing a role here, too.
BAIL is an online AI-powered (AI) tool that assesses liability following a motor accident. It was created by international law firm DAC Beachcroft in collaboration with Automated Insurance Solutions and motor repair and claims flow solutions specialist, Audatex. BAIL asks insurers a few simple questions about the collision, offers a selection of road layout images that best illustrate the crash site, and has the facility to include any witness statements. Armed with this data, the system’s AI platform delivers an immediate answer on liability. BAIL even links to Google Maps and weather data to pinpoint the accident's exact location and weather conditions at the time.
Elliot Roberts, product management director at Audatex, said: “We wanted to support a machine learning-based solution for the essential and sometimes complicated process of establishing liability – helping claims professionals focus on the cases that require their attention and straight-through processing for those that don’t.”
The natural conclusion of vehicle tracking, even if it’s only via smartphone apps, is usage based insurance, with premiums based on the risk profile of every journey. The insurer Zego has developed pay-on-use policies for private hire drivers, delivery and logistics companies and fleets, promising that clients pay for what they use, with premiums set per vehicle distance or time.
3D printing of parts
And finally, when accidents do occur, technology could provide the answer for swifter repairs by overcoming delays in sourcing replacement parts – local 3D printing could manufacture parts more quickly and cheaply than shipping them around the world.