New Delhi, January 12, 2024 – A recent global survey has unveiled a significant shift in driver preferences towards greener insurance policies, with a staggering 75% of participants indicating their willingness to switch providers for more environmentally friendly options. This groundbreaking revelation comes from a comprehensive study conducted by Solera Inc, a global leader in vehicle lifecycle management software-as-a-service (SaaS), data, and services. The research, which surveyed 10,000 drivers across the UK, France, Australia, Germany, and Spain, highlights an urgent need for the auto insurance industry to adapt to growing eco-consciousness.
Simultaneously, a worldwide survey among auto insurance industry decision-makers has shed light on the mounting challenges they face. Not only are insurers striving to meet the burgeoning demand for sustainable options, but they are also grappling with the complexities of new Environmental, Social, and Governance (ESG) regulations.
In response to these challenges, Solera has introduced an innovative solution: ‘Sustainable Estimatics.’ This pioneering tool is the first of its kind in the industry, enabling insurers to track and offset carbon emissions throughout the entire customer claims process. Chris Iacovou, Managing Director of Solera APAC, expressed his enthusiasm about the launch, emphasizing that the tool is more than a mere compliance measure. It aims to empower insurers to offer competitive, green premiums, leveraging one of the world’s largest AI-powered claims databases.
The rising tide of sustainable choices has also been evident in India. Recent trends show that 20% of Indian consumers are environmentally and socially conscious, while 49% prioritize health. Indian consumers have displayed a remarkable willingness to pay a premium for sustainable products, surpassing global averages.
The urgency for Indian corporates to address Scope 3 emissions – indirect emissions in the value chain – has never been greater. A report by CDP, a leading global non-profit, highlights a significant increase in the share of Scope 3 emissions in India, underscoring the need for comprehensive decarbonization strategies.
However, Scope 3 emissions are notoriously challenging to monitor, with only 53% of auto insurers worldwide currently measuring them. ‘Sustainable Estimatics’ addresses this challenge head-on, offering insurers a robust mechanism to measure and mitigate these emissions.
Ian Thompson, Group Chief Claims Officer at Zurich Insurance, voiced his support for Solera’s research. He emphasized the critical importance of measuring the CO2 impact in claims settlement and adopting a sustainable approach in claims management.
‘Sustainable Estimatics’ stands as a testament to Solera’s commitment to sustainability. The tool not only measures but also provides data-driven insights for reducing carbon emissions in the auto claims process, particularly focusing on Scope 3 emissions. This tool is backed by ISO 14064 certification, ensuring the validity of its methodology and technology in capturing verified carbon emissions data.
In India, Solera has been a transformative force in the auto insurance industry since 2006, with its solutions from Audatex. The company continues to innovate, recently launching new AI-powered digital triage and collision repair estimating suites in the country. With its headquarters in New Delhi and offices across major cities, Solera remains a key player in India’s auto insurance landscape.
The research was conducted in collaboration with Censuswide, a reputable independent market research company, ensuring a broad and representative sample of drivers and industry decision-makers across multiple countries.