OEM insurance executives say their products save time and improve the claims process for everyone involved
Insurance executives at General Motors, Rivian and Toyota shared Thursday that the goals they have in offering insurance to their customers are not only to protect their brand and keep customers happy but also provide a better claims experience for everyone involved, including paying repairers to use OEM parts and repair procedures. .
Andrew Rose, President, OnStar Insurance; Mike Slattery, president of Rivian Insurance, and Robert Spencer, Toyota Insurance president and chief operating officer, shared how insurance works through their OEMs during one of three sessions of the Society of Collision Repair Specialists’ (SCRS) Collision Repair Technology Summit.
They all agreed that they did not get into the insurance business to be in the insurance business but to keep customers happy with their brands.
SCRS Executive Director Aaron Schulenberg began the session by saying that the challenges correctional facilities face are differences in perception, expectations and what the consumer experience should look like.
“As a collision center that is so committed to using the right parts, the right tools, the right equipment, and having the right procedures, sometimes we run into that roadblock in that consumer experience,” he said. “What this represents is a potential shift where everyone is working toward common goals to have a similar consumer experience to achieve a similar outcome.”
GM’s goal is to reduce and ultimately eliminate collisions through the use of advanced driver assistance systems (ADAS), Rose said. When collisions occur, he and Slattery said customers and repair facilities benefit from OEMs’ direct access to vehicle IT. For example, the force of gravity during a collision can help predict the damage as well as the cause, not only through data but also through camera footage.
Rose pointed out that 90% of the 1.2 million accidents in which people die around the world are caused by human error. He said GM wants to add value to its customers’ journey by motivating good driving behaviors in them, such as tracking steps on a smart watch.
OEMs have access to consumers when they shop for cars, when they buy cars, when they get their cars serviced when they are in their cars, and when they interact with the displays in their cars and vehicles. Mobile applications, Rose added, give OEMs the advantage of not having to advertise as aggressively as traditional carriers.
“That money can go back into your pocket — meaning more value goes back to safer drivers,” he said. “If you make a claim when there’s an accident, not only can we help, but we can also use our technology to help triage the accident scene… We can dispatch first responders. We can tell them which part of the car they should go to first because it has the largest Some amount of damage. Fortunately, the vast majority of accidents are not that serious, which means the pain they feel is ours. You and I, the claims process, can improve, if not, fix that, using this data.
For example, based on sensor data, GM will know what might be broken or damaged and will immediately order replacement parts and schedule a repair to reduce cycle time and supplements.
“Suddenly, everyone is winning,” he added. “The consumer gets their car back early.”
Rose added that in the event of a total loss, the customer will receive a new or used replacement vehicle within 24 hours of the collision.
Rivian is integrating its insurance into part of the consumer’s digital car buying process as well as financing and trade-in options.
“This invites people into this ecosystem so we can start giving them a better repair experience and a better insurance and claims experience,” Slattery said. “They want to make sure that if they buy our insurance, their $100,000 pickup or SUV will be fixed and returned to them in tip-top shape. We have quick access, and while it’s not part of the traditional insurance product, it brings Peace of mind that if their car is totaled and they need to get another one, they won’t have to wait another year to get a camper.”
He added that Rivian’s insurance arm works with collision repair, advanced driver assistance system, and vehicle design teams to ensure that when vehicles are designed they are designed to be repaired.
“People are looking for better ways, less expensive ways, faster ways to repair vehicles,” Slattery said. “This helps everyone. Consumers are happier, insurance is happier, repair networks are happier… if we can work together to make the process better and more efficient.”
Spencer said Toyota’s insurance team focuses on educating consumers and repair centers about __ and advocating for safe and proper repair of consumers’ vehicles, including what type of insurance policy consumers should get and why certain things are important.
“OEM endorsement is a big part of that,” he said. “OEM certification works by helping to ensure that only original equipment manufactured parts and materials are used when making covered repairs to your vehicles. What does all this mean for you? It means better repairs, faster repairs, and it means happier customers… Toyota Auto Insurance Policy with OEM endorsement (means) you are part of the Guaranteed Repair Program.
Spencer shared that he looked up online reviews of the collision repair service and found that customers are willing to pay more, if they have to, for OEM parts because they want their vehicles back to original factory condition.
One review says: “I paid real money into my insurance for years to get something I’m not proud of anymore. I just wish my insurance would give me the option to pay more for a new bumper with repairs that would make my car look like the solid car I bought it.” Before hitting and running.
But unfortunately, most consumers don’t read their insurance policies until after they file a claim, which is where collision repair facilities can help educate their customers, Spencer said. When customers are unhappy with their insurance, repairers can direct them to OEM insurance, within states where it is currently available, for a better claims experience next time, he said.
“You’re the single best advocate, period,” Rose added. “You’re the expert in that moment, so if you’re forced to deliver an experience you don’t like, and the customer doesn’t like it, tell them how to have a better experience.”
One difference between the three OEM insurance branches is that GM employs its own service and sales agents and adjusters while Toyota and Rivian provide coverage through partner insurance companies.
However, Toyota and Rivian said their certified repair programs can sort insurance and repair center friction on the front end before reaching third-party carriers.
In response to an audience member’s question about how OEM insurance providers handle payment for pre- and post-inspections, which repairmen often receive in response from carriers, Rose said that’s the benefit of having OEM insurance companies.
“I could step back from that comment and say, ‘Why do we do that, if we actually want you to do that every time? Why do we say recommend?’ I might know there’s a very good reason why we said that, or they might say, ‘Well, we’ll change it.’” “It’s the benefit of having an insurance company within the OEM.”
Featured Image: SCRS OEM Summit Collision Repair Technology logo. (Laura Lowry/Reform Driven News)
(From left) SCRS CEO Aaron Schulenberg, OnStar Insurance President Andrew Rose, Rivian Insurance President Mike Slattery, and Toyota Insurance President and COO Robert Spencer discuss OEM insurance during the 2023 OEM Collision Repair Technology Summit in Las Vegas on November 2. (Laura Lowry/Reform Driven News)