Some strategic thinking on green parts and EVs from Solera Holdings;
Solera Holdings LLC, the global leader in vehicle lifecycle management and AI-powered data-driven services, has launched the Global Circularity Consortium (GCC) in Europe at Insurtech Insights Europe. Following its introduction at Insurtech Insights Asia, the consortium’s arrival in Europe addresses the systemic fragmentation that has prevented the mobility and insurance industries from achieving meaningful progress on decarbonization and circular economy principles.
Despite shared sustainability goals, the mobility and insurance industries have continued to operate in silos. The automotive insurance industry is overpaying on claims. Across typical global settlements of €2,500-€3,500, choosing new parts over repair costs insurers an additional $451 per claim, adds two days to settlement times, and produces 66.8% more CO₂ emissions. Even though remanufactured parts cost 30–50% less than new original equipment manufacturer equivalents, the industry continues to default to replacement.
The problem is most visible in the growing EV market. Specialist parts and limited supply mean repairable EVs are written off not because repair is unworkable, but because the information needed to support it isn’t available in time. With global supply chains under increasing strain, feedstock costs for plastic components are expected to rise by 15–25% and claims costs look set to climb further still.
Solera established the Global Circularity Consortium to connect the industry around the data, standards, and incentives needed to make circularity the default. Operating through a four-tiered ecosystem, the GCC positions global insurance as the orchestrator of economics and adoption, with enabler networks, industry networks, and consumers driving frameworks, implementation and trust. Five cross-cutting networks covering data, trust, capital, talent and narrative ensure measurable collaboration across all sectors.
Jing Liao, Chairwoman of The Solera Foundation and Chief Administrative Officer at Solera, said: “The industry has the data to make better decisions. What it has lacked is the shared infrastructure to act on it consistently. Every unnecessary write-off is a cost that didn’t need to happen. We are transforming circularity from symbolic ambition into systemic progress by establishing interoperable systems, aligned incentives and standardised metrics that allow sustainability to scale globally.”
The GCC brings together prestigious academic institutions including MIT S-Lab and Stanford GSB alongside government and industry leaders, creating the governance and credibility needed to drive systemic change across the mobility ecosystem. Insurers gain access to verified sustainability data and shared parts intelligence that reduces unnecessary write-offs, lowers claims costs, and strengthens ESG credentials.
Manufacturers and OEMs benefit from aligned standards and demand signals that support circular design and parts recovery at scale. Progress will be tracked and published annually through a comprehensive Annual Circularity Report covering adoption metrics, carbon reduction, economic efficiency, social inclusion, and trust transparency.
Solera’s research demonstrates that adopting circular repair practices and prioritising green parts over replacement reduces CO₂ emissions by 60.3%, lowers claims costs by 10.1%, and accelerates repair cycle times by 11.2%, with each claim processed through its Sustainable Estimatics platform cutting approximately 45kg of CO₂ and saving up to $180 per case.
The company’s commitment to sustainable automotive claims has been recognised with three global SEAL awards for environmental sustainability leadership, an affirmation of the methodology and data driven approach that underpins the GCC’s framework.
Be the first to comment