Solera tool measures motor claims emissions
Solera has created a carbon tracking tool that allows insurers to measure and offset carbon emissions linked to motor claims processing, supporting sustainability programs.
The Sustainable Estimatics tool features a unique algorithm standardising the measurement of Scope 1, 2 and 3 emissions throughout the entire auto claims lifecycle, and provides insurers with insights for carbon reduction initiatives, such as comparing emissions associated with repairing car parts versus replacing them.
"With one of the world's largest AI-powered claims databases, we're excited to introduce Sustainable Estimatics,” Solera APAC MD Chris Iacovou said.
"This innovative tool is designed to address the urgent sustainability demands facing insurers, not merely as a compliance checkbox but as a way to help them provide customers with more competitive, green premiums.”
Solera research found 65% of Australian consumers would switch to insurers offering greener policies, and all Australian insurers recognise prioritising sustainability metrics is important – yet only two thirds believe they are prepared for the incoming shift towards mandatory sustainability reporting.
Decision makers in the auto insurance industry are “facing a storm of challenges”, not only in meeting the sustainable demand but also managing new ESG regulations.
“Data is a significant aspect of the sustainability challenges facing Australian insurers – both in terms of access to it, and the skills to use it effectively.”
Insurers are significantly underprepared for climate reporting, and overlooking scope 3 emissions, Solera says, noting climate-reporting obligations are set to be enforced by the Australian Government in the 2024 financial year, requiring them to report on their climate-related plans, financial risks, and opportunities.
Scope 3 emissions – including indirect emissions occurring in an organisation’s value chain – are the most challenging sustainability metric to monitor, and only around half of auto insurers worldwide currently measure them, Solera said.