IBIS Turkey 2018 took place at the Hilton Istanbul Bomonti Hotel & Conference Center on 30 October, when leaders from every sector of the collision repair market met to discuss the challenges and opportunities within the local market, and how global trends could impact the industry going forward.
Subjects covered included an overview of the market, digitalisation and innovation within claims, the drivers impacting the industry, sustainability within a value proposition, and how to secure and improve revenue streams.
Among the high-quality of speakers, Ibrahim Aybar,retired CEO and chairman, Renault MAİS A.Ş, provided an overview of both the global and Turkish market in terms of unit sales over the past number of years. He also compared the number of registered vehicles in August 2018 to the same month the previous year, highlighting a significant drop, and pointing to the EV market as a potential area of growth with just 0.8% of the car parc electric in Turkey compared to 6.9% in the EU.
He also pointed to a KPMG Global Automotive survey that found that internal combustions engines would decrease by 30% from 2020 to 2030. It found that diesel had little future, and although EVs would grow in popularity (55% of all new sales by 2030) the lack of infrastructure would limit sales.
The survey also suggested that car owners today would no longer want to own a car by 2025, with the industry evolving completely to be dominate by tech companies with today’s main automotive brands demoted to the role of subcontractors.
Another major factor would be data and interconnectivity, with security and management of this data playing an ever-increasing role.
Delegates also heard how the percentage of the world’s population living in cities would rise from 50% in 2007 to 70% in 2050, and the inherent problems that would bring.
Meanwhile, Riza Sahin, CEO of Hidirusta Otomotiv, discussed the role of the OSS Association. He explained how it was set up in 1995 with just 12 members but now had 150 members, with committees dedicated to communications, technology, training and regulation.
It has also carried out wide-ranging research into the automotive aftermarket, and believes that ‘all roads lead to change’, and each link of the value chain needed to redefined.
Delegates also heard from Okan Utkueri, who discussed the influence of InsurTech on the industry. Figures suggest there are now nearly 2,000 InsurTech companies in the world, with more than 500 established in the last five years alone.
Okan said there would be 50 billion Internet of Things in the world by 2020, which would both drive and be driven by a new generation of customer.
Triggering factors behind this digital era included big data and connectivity, customer behaviour, innovation and computing power.
In the automotive arena, this digital influence would take the form of electrification, connectivity, diverse mobility and autonomous driving. In terms of claims management, technology should result in faster, lower cost processes, reduced fraud, and improved customer experience.
Discussing a similar them, Arnaud Agostini, regional managing director of Solera Group, discussed the digitalisation of insurance claims. He began by highlighting Solera’s global presence, with operations in more than 90 countries, before honing in on Turkey, where he said internet penetration had risen to 68%.
Much of this comprises Generation Y, which wants processes to be quick and easy. Solera found that more than 60% of drivers are ready for a zero-touch claims process, emphasising the need to communicate over multiple channels.
Delegates were also offered an insight into the findings of Frost & Sullivan’s research into global aftermarket trends. It found that the vehicle car parc is ageing – in Turkey the average car is more than 11 years old – resulting in a boon for the parts sector, with revenue rising from $388.7bn in 2017 to $407.5bn this year.
Meanwhile, Bosch, a major player in the Turkish automotive aftermarket, discussed how it was evolving its product portfolio to suit today’s customer, suggesting it was a solutions partner to the industry both in terms of expertise and product.
Also speaking, Soner Akkaya of Aksigorta pointed to an increase in motor and traffic premiums compared to the same time last year, driven partly by its 41% growth in 2018 – meaning it was the only company in the top 10 to increase its general market share.
But while its motors division was flourishing, there were potential challenges for insurers in the future. Among them, new vehicle sales shrunk by 53% with a 10% drop in motor policies, while currency fluctuations were also having a destabilising effect.
Looking forward, it has three key projects on the go. Its smart catalogue is being introduced to define the right outstanding claim amount for damaged parts through a parts and workmanship database, while it is also introducing AI to determine if a part needs to be repaired or replaced. Photo evidence is also being introduced to detect tampered claims using advanced image analytics.
Andrew Marsh, director of AIC Ltd, then discussed the growing complexity of cars both in terms of materials and body shapes. He also provided an insightful overview of ADAS, looking at the sensors and their need for accurate calibration – either static, dynamic or self-calibration – and warned that in the future vehicles would have even more sensors than now. He pointed out that astute businesses could make significant profits in this area.
As ever, IBIS Turkey 2018 would not have been possible without the support of our sponsors AkzoNobel and Audatex.
Turkey 2019 is coming to Istanbul in November. Look out here for an announcement on the date and venue and how to book your place.
