New 'industry-first' sustainable tool launches for auto insurers

New ‘industry-first’ sustainable tool launches for auto insurers | Insurance Business Australia

Environmental

New ‘industry-first’ sustainable tool launches for auto insurers

Insurance giant backs new solution

Environmental

By
Roxanne Libatique

Solera, a global provider of vehicle lifecycle management and claims, has launched Sustainable Estimatics – which Solara claimed to be an industry-first carbon tracking tool.

The tool enables insurers to track and offset the carbon emissions linked to the end-to-end auto insurance claims process, focusing on scope 3 emissions, which are the most difficult to measure. It also enables insurers to compare the CO2 emissions associated with repairing car parts versus replacing them to help drivers make well-informed decisions.

“With one of the world’s largest AI-powered claims databases, we’re excited to introduce Sustainable Estimatics to the Australian market. This innovative tool is designed to address the urgent sustainability demands facing insurers, not merely as a compliance checkbox, but as a way to help them provide customers with more competitive, green premiums,” said Solera APAC managing director Chris Iacovou.

Insurers commit to sustainability

According to Solera, a whopping 99% of insurers recognise the significance of prioritising sustainability metrics, but face various challenges implementing these. It also found that almost a quarter of insurers (22%) struggled with limited access to vehicle claims emission data, while 27% faced data silo challenges. Similarly, 23% lacked the necessary analytics skills to make informed decisions regarding claims data and sustainability.

“The insurance and automotive sectors are witnessing a significant surge in demand for eco-friendly practices. Insurers are increasingly acknowledging this trend, but good intentions alone won’t suffice,” said Jing Liao, executive chairman of the Solera ESG Committee at Solera. “Our research reveals data is an obstacle to moving forward with sustainability efforts. In short, reducing your carbon emissions won’t be possible if you don’t understand them in the first place. It’s clear Insurance providers worldwide need effective solutions for better claims data management and emissions reduction.”

Zurich Insurance has backed Solera’s research and its industry-first solution.

“The ability to measure the CO2 impact of any claims settlement will be an essential requirement for companies moving forwards. Being truly sustainable is one of the key drivers behind Zurich’s claims management globally. We don’t just settle claims – we do it with a sustainable mindset, ensuring that our customers recover in a way that protects the environment and builds resilience for the future, but also that our supply partners adhere to the same sustainability goals,” said Ian Thompson, group chief claims officer at Zurich Insurance.