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March 21, 2024

Insurers and aftermarket missing out on consumer demand for sustainable vehicle repairs

New data from Solera reveals growing driver appetite for sustainable repair options ahead of Insurtech Insights Europe

London – Wednesday 20 March 2024  Solera, the global leader in vehicle lifecycle management and claims, today announces the results of a new study surveying over 8,000 drivers across Europe which reveals the industry isn’t matching customers’ appetite for green vehicle repair options1.

Less than a quarter (23%) of European drivers have heard from their auto insurer about sustainable policy options and when their vehicle was repaired, less than a third (32%) were offered the choice between new or used parts. This is despite over half of drivers (53%) saying they are genuinely concerned about the environmental impact of vehicle repairs and maintenance – rising to 66% of those in Spain and 65% in France.

The sustainability opportunity for garages

The research also reveals garages that can offer sustainable repair options stand to gain customers and retain loyal ones. In fact, 59% of drivers said if they needed a repair, they would be more likely to opt for a garage that offered a sustainable repair option, 58% would return and the same number would recommend them to friends or family.

Jing Liao, Solera’s Chief Administration Officer says: “The eco-conscious driver is here to stay, presenting a clear opportunity for businesses in this sector to step up. Implementing real change when it comes to sustainable measures could have a significant global effect, fundamentally transforming the sector and contributing to a healthier world for generations to come. But, this isn’t just about doing the right thing, it’s also about gaining a competitive edge for insurers, garages, and bodyshops. Drivers across Europe are telling us they prefer dealing with a garage or bodyshop that adopts a more sustainable approach. It’s time for the sector to take sustainability seriously, or risk not only losing loyal or new customers, but also the chance to spearhead a sustainable revolution.”

The rise of green myths

The study also reveals widespread consumer misconceptions around sustainable repair options. Although including used car parts is one of the best ways to provide more eco-friendly repairs and maintenance, 40% of drivers believe that if they were offered used parts by their garage it would be to allow the garage to save money on the repair, rather than for sustainability reasons.   

However, many also expect to pay a premium. Nearly half (45%) of drivers assume green or sustainable vehicle repairs will cost more, rising to 56% in Spain.

Arnaud Agostini, International Managing Director at Solera, adds: “Traditionally, replacing faulty car parts seemed obvious. However, it’s not always the most cost-effective or eco-friendly choice. Repairing common issues like bumpers or windscreens can give items a second life instead of sending them to landfill. Insurers and garages can play a vital role in helping customers understand the green options available, and by doing so, can help themselves attract more business. The latest data and technology are putting this intelligence right at technicians’ fingertips, helping them choose the best repair option for every vehicle, every time.”

“The good news for the insurer is that green parts will help them reduce both the cost of a claim and the carbon emission footprint at the same time.”

To help insurers and garages respond to modern driver demands for sustainability, Solera will be sharing insights at two thought leadership sessions during Insurtech Insights at The O2, InterContinental London on 20th March 2024:

  • Cracking the Code: Winning the Hearts of Gen Z: Solera’s Chief Administration Officer, Jing Liao, will be discussing why insurers need to rethink their traditional one-size-fits-all approach and embrace new ways to engage with the next generation of customers. This includes considering sustainable options, given Solera’s study revealed Gen Z are the most concerned about environmental impact of claims.
    2:30pm on March 20th on the Red Stage.
  • Transitioning Towards a Net Zero Society: How Insurance Can Drive Change: Solera’s International Managing Director, Arnaud Agostini, will be sharing his insights into how insurance companies can align their operations, products, and investments in line with sustainability goals.
    2:00pm on March 20th on the Purple Stage.

Helping companies reduce their CO2

To meet the challenges insurers and bodyshops have faced, Solera launched an industry-first product, ‘Sustainable Estimatics’. This tool enables insurers to measure and use data to offset the carbon emissions (CO2e) tied to their claims process. This is achieved by monitoring and measuring the end-to-end claims journey, offering insurers actionable insights such as recommending car part repairs instead of replacements to reduce CO2 emissions. The tool is being rolled out across 2024 and helping to reduce scope three emissions.

About Solera 

Solera is the global leader in vehicle lifecycle management software-as-a-service, data, and services. Through four lines of business – vehicle claims, vehicle repairs, vehicle solutions, and fleet solutions – Solera is home to many leading brands in the vehicle lifecycle ecosystem, including Identifix, Audatex, DealerSocket, Omnitracs, LoJack, Spireon, eDriving/Mentor, Explore, cap hpi, Autodata, and others. Solera empowers its customers to succeed in the digital age by providing them with a “one-stop shop” solution that streamlines operations, offers data-driven analytics, and enhances customer engagement, which Solera believes helps customers drive sales, promote customer retention, and improve profit margins. Solera serves over 300,000 global customers and partners in 100+ countries. For more information, visit www.solera.com.