Embrace change and new technology
Laurence Vivet-Ract, CEO of southern Europe, Innovation Group told IBIS Global Summit delegates, the ‘future is good for those embracing change and new technology.’
In her session, Private equity and the collision repair market, Laurence said how we were in an environment of disruption with new players moving at an audacious pace. This, she claimed, presented lots of opportunity.
Laurence spoke of how the £500m investment from Carlyle Group in 2015 has helped change the Innovation Group which processes over four million insurance claims annually. ‘They wanted us to change the game, expand geographically and create a value proposition which is different,’ said Laurence.
Looking at the opportunity, Laurence said that the future is good for those embracing change and new technology. She pointed at a ‘massive change’ in consumer behaviour pointing to ownership models and data analytics, amongst others, as areas of focus. She suggested that insurers need to change from technical businesses to service providers.
‘The market is incredibly tough for insurers to make a return,’ said Laurence as she turned her attentions to the insurance market dynamics. She pointed at how new market entrants were challenging the traditional models.
Discussing ‘intelligent’ vehicles, Laurence pointed at the potential in years to come for a 70% reduction in rear end collisions but she claimed it (telematics and connected vehicles) presented great opportunity for those who utilise the data intelligently.
Looking at the OEM role in the value chain she suggested that shared ownership will change models in the future.
‘Technology offers the challenges and the solutions in the sector,’ Laurence told delegates. She said that with so much data available you have to know what you want in order to create the right service.
In the challenging environment, Laurence highlighted how partnerships, investment and supply chain sustainability were key aspects to address. ‘We are in an ecosystem that needs to move together,’ said Laurence.
Laurence said how shared mobility and autonomous vehicles are creating challenge for the insurance industry. She also explored how the digital challenge – FinTech – offered both risk and opportunity yet digital solutions was necessary as it is what customers want.
‘We’re in a world where transport as a solution is growing but there is more to be done to optimise it,’ said Laurence.
In summary, Laurence said, ‘We need to accept change in our thinking and processes, and we need partners to do it.’
Speaking of private equity, Laurence said it is a great opportunity and offers vision. She said the rules of private equity are that you shouldn’t mix asset investments.
The IBIS Global Summit 2017 is partnered by 3M, AkzoNobel, Audatex, Enterprise Rent-A-Car and Fix Auto World.
The event is taking place at the Meliá Castilla hotel in Madrid, Spain on 12-14 June 2017.