The latest claims data is good, but challenges on processing remain, according to Trakm8;
Recent data from the Financial Ombudsman Service shows encouraging trends in the insurance sector, with a decline in total claims during the first half of 2024 compared to the same period in 2023. However, the motor insurance industry is still facing challenges, as factors such as inflation and rising vehicle repair costs continue to drive up the average cost of claims.
According to a report from the Association of British Insurers (ABI), the average motor insurance claim in the UK now stands at £4,800, with insurers paying out £2.5 billion in motor claims in the second quarter of 2024 alone. In response to these challenges, insurers are increasingly turning to connected insurance technologies to help manage claims costs, enhance claims processing efficiency, and encourage safer driving practices.
Connected insurance uses telematics devices to collect data on driver behaviour and vehicle events. This data allows insurers to:
Assess Liability Promptly: Early claims capture from connected devices allows insurers to assess liability promptly, providing crucial information right from the start.
Speed Up Claims Resolution: Connected devices can provide immediate first notification of loss (FNOL), enabling insurers to respond quickly and resolve claims faster.
Reduce Admin Costs: Starting the claims process quickly enables insurers to get vehicles into their network of repair shops, arrange courtesy cars, and manage repairs as soon as possible. This reduces administrative costs and improves customer satisfaction.
Combat Fraud: Connected data offers precise accident reconstruction, helping insurers accurately determine fault and reduce fraudulent claims.
Trakm8, a leader in connected insurance, offers insurers a comprehensive solution that not only helps to reduce claim costs but also promotes safer driving. Its AI-driven driver app provides feedback to encourage better driving behaviour, while connected data can help insurers settle claims faster and more accurately.
Adam Gooch, Managing Director of Trakm8 Insurance, commented, “With rising claims costs, connected insurance is vital for insurers to stay competitive. Our solutions help insurers lower claims costs, accelerate claims processing, and, importantly, encourage safer driving. This approach benefits both insurers and their customers.
As claims costs rise, connected insurance solutions like Trakm8 are proving essential in managing risk and improving operational efficiency.”
Trakm8 has a proven track record of delivering a market-leading connected insurance solution that incorporates an AI and big data interface and award-winning connected devices. This gives insurers access to a range of big data insights including our portfolio of connected vehicle services and data analytics to give a detailed understanding of customer driving habits and vehicle health, so they can manage policies and risk profiles on an individual basis.
For more information on Trakm8, please visit: https://insurance-telematics.trakm8.com
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