Europcar

Sustainability of supply: the big insurance conundrum

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June 2021

It won’t have escaped anyone’s attention that there are currently some serious challenges in goods supply for the UK market, from cement to new cars. And these issues are likely to affect the insurance customer experience too.

The lack of building materials is no doubt causing headaches in managing home insurance claims. And for motor insurers delays in new car production are likely to have a knock-on impact on the claim experience. As well as issues with access to new parts, if the customer can’t be provided with a replacement vehicle while their own car or van is in the garage that can seriously undermine satisfaction ratings.

Working with partners that have reliable supply chain connections to try to overcome these challenges is therefore vital for insurers. It’s a question that should be asked at the outset of a new relationship; and one that needs to be constantly monitored as external factors change. Having a replacement vehicle partner that offers a flexible range of use options is also crucial – from providing access to vehicles through a traditional rental model for days or weeks at a time, to giving customers car share credits to pick up and drop off a vehicle just when they need it.

The other big question on sustainability is, of course, the environment. And as the vehicle parc steadily evolves into zero and low emissions, the need for a replacement vehicle partner with access to similar or like for like vehicles for policyholders who have made a conscious environmental choice should also be a key question in the procurement process.

A partner with a young fleet – and therefore encompassing the latest motoring technologies, from electric and hybrid to ADAS and connected vehicles – should be able to deliver a positive motoring experience for insurers’ customers. Being able to offer customers alternative mobility options rather than just a straight replacement vehicle swap will also become a more important consideration in the coming years.

Sustainability at every level of business operations will be a key driver in the years to come. Working with partners who demonstrate an understanding and preparedness for this future should be a top priority now.

 

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