"The point is that Netflix disrupted itself and that's what the insurance industry needs to do as well."  ITC 2019 Keynote message from Glenn Shapiro President of Allstate Personal Lines

Shapiro began by explaining that the insurance industry, compared to other industries, has remained in a protective bubble, and thus largely staying away from disruption until now. He said that there were a few reasons for that bubble but that "the bubble has to burst - we know that we have to disrupt ourselves as an industry." Daniel Martin Eckhart Swiss Re Institute Author.

The article points to disruption and transformation being about far more than just technology. To speed up the 5-7 days to get an estimate done means having a very efficient and effective network if repairers that agree to meet aggressive performance standards. It means sharing technology with the supply chain- a digital claims platform that can securely share a single digital record (redacted of course to relevant information and data) with the supply chain.

That means the platform must be a bi-directional communications hub that choreographs all the partners required to get vehicles back on the road. If that is to give policyholders real-time updates on the status of repairs there needs to be integration with the bodyshop management systems. 

Then there is the matter of estimating repair costs and lead-times. Photo estimating for example does exist but has a single digit adoption rate at this point. One reason is that so much damage is hidden behind visual damage. Another is that AI needs a massive amount of visual data to recognise damaged parts, severity of of damage and vehicle data. Companies like Xtract360 use telemetry to measure the kinetic energy and thus damage at point of impact. But only a small number of vehicles offer that. You can, of course, simulate the accidents but that is less accurate.

Audatex has a long and world-wide history of assessing vehicle damage and therefore cost and time estimates of repair. Integrated with digital claims platforms like 360Siteview it offers a significant step forward to the innovation and disruption that Shapiro envisages. In fact vital stages to action the three steps of the framework Shapiro promotes to disrupt motor insurance.

  1. Customer power
  2. Automation
  3. Machine learning and AI

Earlier in 2019 SMA published a paper entitled "Claims & Risk Management in the Digital World; A Next-Gen Platform". It shows how far available solutions meet the vision that Shapiro pictures. Much nearer than you think.

And as the data is amassed to allow insurers so fully leverage AI so the actual outcomes will support the disruption that insurers must apply to themselves. A word of warning however. Other disrupters have the same solutions on the radar. Motor OEMs and repair networks, Auto manufacturers focussed on mobility solutions such as Toyota. The move to electric and autonomous vehicles is a catalyst for new ecosystems and new partnerships.

Move now and disrupt yourselves before some other group of enterprises does it to you.