October 2, 2023
Insurers in the Green Lane – Driving Sustainability in Motor Insurance: A Market Opportunity
In this comprehensive study by Solera, you’ll uncover a wealth of insights into the business opportunities and challenges that motor insurers currently encounter on their path to reducing carbon footprint and Scope 3 emissions in claims management. Moreover, you’ll gain a profound understanding of the demands voiced by customers when it comes to selecting environmentally conscious insurance providers.
1. The Drive for Sustainable Insurance
In a world increasingly focused on sustainability, drivers are seeking greener options in both their vehicles and insurance policies. Electric vehicle (EV) sales have surged, tripling market share between 2020 and 2022, now representing 14% of global car sales (International Energy Agency). Surprisingly, 75% of drivers are willing to switch to or stay with an insurer that proves its sustainability credentials.
2. The Response from Insurers
Auto insurers are recognizing the opportunity to offer eco-friendly solutions and the importance of sustainability. Remarkably, 99% of decision-makers at these companies prioritize improving sustainability metrics, with 64% considering it “very important.” They’re taking action by investing in renewable energy, exploring green insurance policies, and prioritizing repairs using recycled materials. A repairs revolution is underway, aligning with the call for greener practices.
3. Bumps in the Road
While the path to sustainability is clear, insurers face challenges. Cost concerns (32%) and limited access to emissions data (22%) pose hurdles. Insiders’ lack of interest (27%) and senior management directives (30%) hinder progress. Over half (55%) feel overwhelmed, risking missing out on meeting the demand for eco-conscious car insurance.
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4. Data: The Key to Sustainability
Data plays a pivotal role in sustainability efforts. Fortunately, 80% of car insurers globally are enhancing data tracking for sustainability in claims and repairs. This commitment is expected to result in more emissions data monitoring in the coming year. However, challenges persist in measuring Scope 3 emissions, which are critical yet difficult to track.
5. In Summary
Sustainability is no longer optional; it’s an imperative. In the car insurance sector, it’s also a market opportunity. By offering policies rooted in sustainability and leveraging data insights, insurers can stay competitive. Challenges remain, but collaboration with partners like Solera can unlock emissions data and drive sustainability forward. Don’t miss the opportunity; embrace sustainability in motor insurance today.
Fill in the form to download the full study for Insurers to delve deeper into the world of sustainable auto insurance. Solera is here to support Insurers in their journey to reduce the carbon footprint in the Claims management Journey. In the following weeks the Study will be available for to download in Spanish, French and German.
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