The current focus by the FCA on motor valuations is an opportunity to automate your manual claims process
The FCA is currently focussing their efforts on fair claims settlements for motor vehicles at the point of total loss across the UK.
What is the FCA doing?
The FCA has concluded that one large UK insurer may have paid out unfair vehicle claim settlements over the past five years and tasked them with reviewing all motor claims made in this period and redressing any underpayments.
For more information: read the full Insurance Times article: "Direct Line Group responds after FCA orders claims review"
This focus will transcend this one insurer, and with the FCA writing to the CEO of all UK motor insurers to highlight this point; this could be the tip of the iceberg.
What does this actually mean?
Kieran Fisher , Percayso's Account Director for Vehicle Data, spends much of his time speaking to senior industry figures across insurers, brokers and regulatory bodies including the FCA, ABI, MGAA and FOS. The overall consensus is that the ultimate metric of a fair settlement is enabling the customer to afford a comparable vehicle at the same market price at the point of claim.
"This task is usually quite time-consuming as just offering a ‘guide value’ is no longer enough. The market is so volatile, with pricing changing week on week, that a guide price can be out of date the very day it's gathered, so manual market research was needed."
"The challenge for the industry is how to ingest all the necessary data specific to make, model and options when manually finding these vehicles via desktop market research, meaning there can be scope for error, not to mention the time this can take."
How can Percayso help insurers?
Percayso's Companion vehicle valuation tool allows manual vehicle market research to be automated. Within seconds of entering the vehicle's registration, the tool arms claims teams with live valuation data (updated daily to track market fluctuations and trends) and maps the vehicle to the directly comparable vehicles available in the marketplace. Insurers are presented with transparent and fair evidence and can justify why the valuation is appropriate for that customer. Reports are also generated for customers or any third party to demonstrate the valuation and supporting evidence to instil a high level of transparency and trust to the offer being made.
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Fisher comments it is because of this automated process that Percayso's Vehicle Intelligence clients are seeing a dramatic improvement in operational savings, fair outcomes, customer satisfaction, and a significant drop in complaints.
"Claims departments using our valuation service are seeing referrals and complaints halved. Just last week, one of our clients shared that they have seen an increase in acceptance of the first offer of 62%, and their referrals and complaints have halved in just four months off the back of using our Claims Companion tool on every motor total loss they see."
Get ahead with Percayso Vehicle Intelligence 🚙
The Financial Ombudsman Service trust and use Percayso's vehicle valuations extensively when there is a dispute.
Book a call with the Percayso team today to discuss how our technology aggregates data from multiple sources and transforms it into valuable insights for insurers.