Solera Inc, a leading global provider of vehicle lifecycle management software-as-a-service (SaaS), data, and services, conducted a survey involving 10,000 drivers from the UK, France, Australia, Germany, and Spain, revealing that 75% of respondents would consider switching to insurers offering greener policies. An additional worldwide survey within the auto insurance industry indicated that providers are grappling with challenges in meeting sustainable demands and adhering to new ESG regulations. In response, Solera has introduced 'Sustainable Estimatics,' an industry-first carbon tracking tool to help insurers track and offset carbon emissions associated with the end-to-end customer claims process.
Chris Iacovou, Managing Director, Solera APAC, expressed excitement about introducing Sustainable Estimatics, stating that the innovative tool addresses the urgent sustainability demands facing insurers. It aims not just to comply with regulations but also to assist insurers in providing customers with competitive and green premiums.
Rising sustainable choices in India and Scope 3 emissions challenges
In India, sustainability concerns among consumers have been on the rise, with 20% being environmentally and socially conscious, and 49% being health-conscious. Indian consumers are willing to pay over a 20% premium for sustainable products, the highest figure across 11 countries. However, the challenges extend to corporates in India, as Scope 3 emissions share increased from 15% in 2020 to 38% in 2021, emphasising the need for companies to engage supply and value chain partners in decarbonisation strategies.
Iacovou highlighted that 'Sustainable Estimatics' effectively addresses notoriously challenging Scope 3 emissions, assisting insurers in measuring and mitigating these emissions for a greener future.
Industry-first tool 'Sustainable Estimatics' supports insurers
To meet the demands and challenges faced by insurers, Solera introduces an industry-first product, 'Sustainable Estimatics.' This tool enables insurers to measure and use data to reduce carbon emissions tied to their complete auto claims process, with a primary focus on the hard-to-measure scope 3 emissions. The tool features a unique algorithm standardised by Solera, providing valuable insights for insurers' carbon footprint reduction initiatives.
In practice, 'Sustainable Estimatics' assesses CO2 emissions, allowing insurers to compare emissions associated with repairing car parts versus replacing them. Solera has achieved ISO 14064 for auto claims, validating the methodology and technology used to secure verified carbon emissions data and supporting efforts to mitigate or offset emissions.