Get connected or…
The final presentation on day one of the IBIS Global Summit 2017 saw Sean Carey, president of SCG Management Consultants tell delegates that the connected car and landscape is ‘all consuming’.
In his session – The connected car landscape – Sean told delegates that the connected car and the connected landscape consumes OEMs and the claims industry. ‘Technology compresses time,’ said Sean, ‘We are becoming more and more reliant on the connected car.’
Sean spoke of how full automation will come but nobody really knows when and suggested that it’s the journey to get there that is the important bit. Sean said, ‘By 2020 Ford has announced that mass production vehicles will have full autonomy – it’s here but it’s the journey that will impact the sector.’
‘We are already past ADAS,’ said Sean, ‘we are ADAS AD’. With that he pointed at how the industry is at a inflexion point and that there is a great need for talent and the people to be able to repair these things.
Discussing the future, Sean predicted that accident rates will reduce by over 80% by 2040 but, in his opinion, more importantly is that there will be a 29% decrease by 2020. He also highlighted how by 2040 there will be a 2.5x increase in the cost of repair, again equating to a 29% increase by 2020. ‘The hours per job required will change dramatically along with the skills needed to do so,’ said Sean.
Referencing a KPMG survey of insurers based on connected cars, it highlighted a ‘profound’ impact on the industry and at a faster rate than expected. The survey also highlighted how vehicle manufacturers will own the data and provide insurance for the future.
Sean said that the effects on workflow will be ‘all about the consumer’. He warned that consolidation will accelerate and the independent repair sector is adrift and customers are confused by it all.
Sean then asked what if the car made the claim? He said there is no question that it will happen, generating objective information and communicating it immediately. He suggested that analytics and data will determine triage process.
From the OEM’s perspective FNOL is much bigger than just parts – consumer awareness, sentiment and retention has a huge value. With that Sean presented how OEMs will return to the market with parts programmes, industry support, consumer networks, partnerships, new OEM stakeholders – ‘when the stakeholders change, the budgets will change’. He said that all assets will be deployed and that a whole new world will emerge.
Sean said, ‘The vehicle is the most important part in all of this – you have to follow the car.’
He continued by highlighting how OEMs are at the forefront of creating the future and they are making their way into the claims and repair segment. Sean said that we should be focusing on building capability networks – networks of shops that are capable of repairing the vehicles and who know their limitations. He warned, ‘there will be bodyshops that wake up and realise they cannot repair vehicles anymore.’
In closing Sean said, ‘If you trust one thing I have said it’s that this evolution of the industry is going to happen much sooner than people think. It’s unstoppable.’ However, despite it sounding like doom and gloom Sean said that those who are prepared will be in a very good position.
The IBIS Global Summit 2017 is partnered by 3M, AkzoNobel, Audatex, Enterprise Rent-A-Car and Fix Auto World.