Modern Insurance Magazine - The International Automotive Market Supplement

We are in a really strong position to bring a proposition to the market that will challenge, test and enhance what is already being achieved Richard Taylor

TRANSFORMING THE UK

THE INTERNATIONAL AUTOMOTIVE MARKET SUPPLEMENT 2017

MODERN INSURANCE

WELCOME he International Automotive Market Supplement introduces GT Motive, in partnership with Mitchell International, to the UK as they plan to transform the market by becoming the reliable source for automotive aftermarket suppliers, insurance carriers and leasing companies. The integration of both companies enables GT Motive to offer a comprehensive proposition for claims processing in the UK as well as innovative products that will transform bodyshops and communication platforms.

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We spoke with GT Motive’s Managing Director, José Castelo, about GT Motive’s expansion and how they will innovate the UK market using their experience from Europe while utilising Mitchell’s experience in the US. Richard Taylor, UK Business Director and the Head of the UK office, shares GT Motive’s plans and goals, and how important data and technology will be as they enter into a new market. Technology became a prevalent theme throughout the supplement. Debbie Day, Executive Vice President and General Manager of Auto Physical Damage (APD), discussed technology within the sector and how Mitchell will be using new technologies.

Olivier Baudoux, Vice President of Mitchell, reiterated its

CONTENTS

importance in his interview about current technology trends that are impacting the different markets and what solutions they can offer through their portfolio of products.

Modern Insurance also spoke to DAC Holdings about their partnership with GT Motive and how they are preparing to help launch GT Estimate to bodyshops throughout the UK. Finally, we have a snippet of the GT Motive Product Catalogue, which introduces the benefits behind their products and what they can do for you and your business.

I hope you enjoy reading this supplement, and if you have any feedback or comments, please do get in touch via the details below.

Poppy Green Editorial Assistant, Modern Insurance Magazine 01765 600909 | @Modern_Poppy | poppy@charltongrant.co.uk

INTERVIEWS

6 José Castelo

23 Olivier Baudoux

10 Debbie Day

26 Damien Dolan

José Castelo, Managing Director, GT Motive, discusses GT Motive’s expansion into Europe and their plans for the UK Market, as well as the benefits behind their international partnership with Mitchell.

Debbie Day, Executive Vice President and General Manager of Auto Physical Damage (APD), Mitchell, talks about technology within the automotive sector and how Mitchell is using new technologies to create and deliver better solutions.

Stephan Otto, Senior Director, and Richard Taylor, UK Business Director, discuss the fleet and leasing opportunities that exist in Britain as GT Motive comes to the UK, and how previous experience within the European market can aid the process.

Technology is rapidly changing and Mitchell is keeping up with the pace. Olivier Baudoux, Vice President, Mitchell, spoke to Modern Insurance about how Mitchell is making the most of new technologies and how they will be utilising this in the UK.

Damien Dolan, CIO, explains GT Motive’s database and estimating services, and what it can offer the UK market.

27 Pablo Liñares

As GT Motive expands into the UK market, Richard Taylor, UK Business Director, GT Motive, discusses GT Motive’s aims and propositions, and the other developments the UK market will see in the future.

17 Stephan Otto and Richard Taylor

14 Richard Taylor

Pablo Liñares, Consultancy Director, GT Motive, highlights some of the features being brought to the UK and how GT Motive will be working with Mitchell to provide the best solutions for their customers.

FEATURES 30 Product Catalogue

A selection of products that GT Motive, a Mitchell Partner Company, will be bringing to the UK.

20 Karl Durham

Since formalising their partnership, DAC Holdings and GT Motive are working together to launch GT Estimate to bodyshops across the UK. Karl Durham, DAC Holdings, discusses their strategy for the UK and what they predict for the UK repair sector.

Group Editor Brendan Gurrie

Project Manager Rachael Pearson

Editorial Assistant Poppy Green

Events Sales Kate McKittrick

The International Automotive Market Supplement 03

INTERVIEW

JOSÉ CASTELO José Castelo, Managing Director, GT Motive, discusses GT Motive’s expansion into Europe and their plans for the UK Market, as well as the benefits behind their international partnership with Mitchell.

Q A

How has GT Motive evolved into what it is today?

GT Motive was created in 1971 with the goal to help automotive industry professionals in Spain. At the time, there was very little information about repair processes, parts, prices and so on. As a result of our first printed products, these professionals started to become more independent and efficient.

In 1998, the company made the leap to have its first digital products on CD and, years later, in 2003, our international database and our main product for damages assessment was born: GT Estimate.

Since then, solutions and procedures have changed and, in 2007, GT Motive began its expansion in Europe, specifically in France and Portugal. Now, in 2017, we have customers in 23 countries in Europe, in addition to South Africa, along with our partner, Mitchell International.

Q A

What does an international partnership with Mitchell offer GT Motive?

On the one hand, Mitchell leads the United States and Canada in the development of technological solutions for managing automobile claims for both property and personal damages, with solutions deployed in more than 300 insurance companies and 30,000 body shops. I want to emphasise Mitchell’s collaborative solutions that optimise workflow and communication between the carrier, the bodyshop and the insured consumer.

On the other hand, GT Motive is a reference in Spain and has a strong position in Europe, with more than 11,500 bodyshops, 4,300 experts and around 80 insurance and leasing companies. One of our strengths is our database of automobile technical information, which allows users to make vehicle claim estimates with agility and accuracy.

From a technological point of view, the integration we have made between the solutions of both companies allows GT Motive to offer a comprehensive value proposition for claims processing in Europe. Carriers can then tailor the combination of modules that they need to use for their specific company needs.

From a financial point of view, it is undeniable that having Mitchell’s support allows us to tackle investment in innovation and commercial development in Europe that is only available to technology companies like Mitchell.

Finally, the experience and strength of the Mitchell brand enables GT Motive to present itself as a partner to its customers and potential customers in Europe, with deep industry expertise using the best technologies to connect our customers to the best information in the industry.

06 The International Automotive Market Supplement

José Castelo José Castelo joined GT Motive as Managing Director in 2006.

Before then, he worked at several top companies in the insurance sector for sixteen years, which gave him a solid, global insight into the insurance industry and its interactions with the automotive aftermarket and services.

In this role, José Castelo will lead GT Motive in its panEuropean expansion and in the development of new solutions and services for the automotive sector.

José María studied economics, specialising in actuarial science.

INTERVIEW

Of course the economic factor for making investments is important, but so is knowing how to differentiate from others and focusing on being competitive to achieve good results

Q A

How has GT Motive’s expansion into Europe benefited GT Motive and Mitchell?

The two companies’ combined investment is more than $120M (Mitchell) and €7M (GT Motive) annually in technology and data. It is clear that these multi-million dollar investments are only sustainable over time if one has scale and size. Thanks to its alliance with GT Motive, Mitchell has been able to add the sizeable European market to its already strong presence in the North American market, thus doubling its potential market.

However, Europe is not a single market. It is a common ecosystem for a large number of countries with important specific factors in each country, such as different standards or scales for damages and paintwork, business practices, consumer habits, languages, laws and regulations.

Over the last ten years, GT Motive has acquired this knowledge thanks to our teams and local partners, and we have adapted our solutions to all of these specific cases and needs, which undoubtedly paves the way for establishing Mitchell’s innovative digital solutions here.

Q A

What has been the strategy and greatest successes of GT Motive Europe so far?

There are three keys to the success of our strategy in Europe:

One: We have developed a very aggressive commercial strategy that combines strong investments in our own sales teams, in those markets considered key to our development, with alliances with local entrepreneurs in other less strategic countries. This decision has allowed us to accelerate international expansion, acquire local knowledge and reduce investment in commercial development.

In the UK we are combining both strategies as a key market for International GT Motive development.

Two: From the very beginning, we have designed centralised and international production and support processes (Data, IT, Product). The advantage of this decision is twofold; we are very cost efficient, which is crucial to our strategy of price competitiveness and, on the other hand, all of our customers in Europe benefit from the improvements developed for any other customer or market.

Three: Our partnership with Mitchell has provided us with the necessary resources, solutions and credibility to present ourselves as the real alternative in Europe.

Q A

How is GT Motive changing the industry?

Firstly, GT Motive and Mitchell are bringing competition to the market, and this is essential for European carriers so that they can choose between innovative, flexible, agile and competitive suppliers.

Finally, GT Motive and Mitchell provide totally innovative solutions that generate collaborative workflows that can be automated.

Our collaborative solutions allow all agents in claims management processes (carrier, expert, workshop, spare part dealer, car rental company and final customer) to work in the same environment.

This environment allows us to have all of the information available in the cloud, safely and in real time for all involved, which ensures that there is better communication and that the process is much more agile and paperless, and other means of communications such as email and phone calls are not needed.

All this is subsequently reflected in a better control of claims costs, a reduction in the life cycle of claims and an improvement of the efficiency of processes, which has a greater impact on final customer satisfaction.

Q A

Are there international differences in the needs and expectations of consumers across Europe?

In GT Motive, we have been conducting an international customer satisfaction survey of insured consumers who have had a car accident (regardless of the carrier managing the claim) in the last four years. We ask them about their expectations and the degree of satisfaction in the different phases of the claim process.

For the time being, we have conducted these surveys in Spain, France and Italy (we will soon be conducting the same survey in the UK and we will be able to compare results with other countries).

The conclusions of this survey suggest that, in a generic way, consumers have very similar expectations; they demand a quick and simple process to report the accident, a proactive system that keeps them informed of the status of the repair, a solution that facilitates mobility while they do not have their own vehicles and, finally, some kind of certification that guarantees that their vehicles have been repaired with certain quality standards.

In the course of the next three to five years, we want to become a reliable benchmark in the three markets in which we operate: automotive aftermarket suppliers, insurance carriers and leasing companies

Secondly, we are incorporating easy-to-integrate, user-friendly, intuitive, modular and open technology that can communicate with third-party solutions.

The International Automotive Market Supplement 07

INTERVIEW

Our experience in Europe has taught us that each country is different and that it is essential to adapt to the reality of each one of them However, when you compare the situation of each country in a more detailed way, even within each country, depending on the type of carrier in question (working with agents or via telephone/ Internet), different customer profiles and, therefore, different expectations can be seen.

Specific examples of different expectations, depending on what the country or customer profile might be, for instance, the different interest in carriers recommending a workshop, acceptance of compensation (cash settlement) instead of repairing slight dents or scratches or, more recently, the different degree of interest in using smartphones for reporting claims and keeping tabs on subsequent steps in the claim process.

Q A

What challenges and opportunities does GT Motive Europe face as it expands into the UK market?

The opportunities are evident; we can offer our solutions in one of the main European countries, with almost two million claims per year, with management processes that are very similar to those in the USA and with several insurance companies with whom we already collaborate in Continental Europe. In addition, the fact that it is a very demanding market, which requires real alternatives that break the current situation of lack of competition in technology suppliers, works in our favour.

The challenge is to know how to respond to the levels demanded by this mature and developed market with our solutions. We will need agility and flexibility to adapt to their specific requirements and to integrate with our clients’ management systems.

Q A

What are GT Motive’s plans in the UK market?

Our plans in the UK are very ambitious. In the course of the next three to five years, we want to become a reliable benchmark in the three markets in which we operate: automotive aftermarket suppliers, insurance carriers and leasing companies.

The first one, the automotive market, refers to our relationships with automobile manufacturers and workshops. In this sense, I am convinced that our partnership with DAC/ITAS positions us in the UK in a unique way, and that is why we have delegated the commercialisation of GT Estimate to their experienced team.

In the second market, the insurance market, we have combined Mitchell’s experience and technology in North America with that of the GT Motive team in Europe, and added the local knowledge and Richard’s contacts to lead us. I am convinced that we have the perfect combination of technology and knowledge of the insurance industry to be able to offer a winning proposal. Indeed, we are excited to be working on three pilots with different carriers at the moment. I can only thank the insurance industry for the promising reception it has given us. Now it’s up to us to live up to those expectations!

Finally, we have the fleet and leasing market. Like the insurance market, it is a very mature market focused on a single technology provider. We are proud to have the confidence of the main international operational leasing companies. Our challenge is to bring the experience and solutions we have acquired in recent years, in more than twenty countries, to the UK market.

08 The International Automotive Market Supplement

Q

In which aspects do you consider this partnership adds value to the UK insurance market, and more precisely claims management?

A

With the Mitchell WorkCenterTM claims management platform oriented to carriers, Mitchell Connect for workshops, the claims estimating solution GT EstimateTM and the new Mitchell FNOL Mobile and Photo Based Estimate modules that we make available to end users, we can offer a package of global and integrated solutions and services with which to control the entire claims processing flow, from initial reporting to final delivery of repaired vehicles.

More specifically, after several meetings with most of the top ten insurance carriers in the UK, I would emphasise that the modules that have most aroused the market interest have been the solutions that allow them to better engage the client in the claim process (FNOL Mobile, Photo Based Estimate), support for updating repair statuses through Mitchell Connect, spare parts management and everything related to analytics and predictive models that help the understanding of how the different factors involved in claims processing costs evolve.

Q

As ADAS technology continues to develop and we grow closer to total vehicle autonomy, how is the aftermarket ensuring training and standards are maintained to meet the complexities of these new technologies?

A

It is difficult to predict when and how self-driving vehicles are going to impact the insurance industry and the aftermarket suppliers, however, there is no doubt that when they become available, they will be absolutely disruptive. But what is clear is the recent and unstoppable use of vehicle monitoring sensors currently seen in the new vehicles, including Advanced Driver Assist Solutions (ADAS) technology, and how it is impacting the decision of which workshops are able to perform what repairs.

We are going to move from a model in which any workshop can perform any repair, to a model in which it will be necessary to anticipate the potential damages to the vehicle and a recommendation made to specialised workshops that will be able to repair insured vehicles.

Companies like our partner DAC, through ITAS, have already anticipated this revolution and have spent years investing in training processes and certification of the standards (OEM) that help the workshops to guarantee correct and safe repairs.

In the same vein, Mitchell has just launched a very sophisticated diagnostic solution integrated with claims estimating in the USA, thanks to their alliance with BOSCH. This solution allows independent workshops to use a multi-brand diagnosis solution, which is very competitive in price and is deeply integrated in the flow of information requested by carriers.

Q A

How can smaller or independent repair networks keep up with the technological pace set by larger or franchised networks?

Being small or independent is not at odds with adapting, evolving and improving processes. Any bodyshop of this type, if it is willing to face a digitisation process, will be able to survive in this new environment. They need to want to be more efficient and seek specialisation via procedure certification according to the standards of some manufacturers.

INTERVIEW

Europe is not a single market. It is a common ecosystem for a large number of countries with important specific factors in each country, such as different standards or scales for damages and paintwork, business practices, consumer habits, languages, laws and regulations Carriers look for the best bodyshops to include in their network of trustworthy repair facilities and there are many of them that are independent but keep alive the spirit of adapting to the times, something that allows them to compete with other larger bodyshops or those belonging to networks that are theoretically more technologically advanced. Of course the economic factor for making investments is important, but so is knowing how to differentiate from others and focusing on being competitive to achieve good results.

Q A

What challenges and opportunities are present in the European aftermarket that could impact the UK aftermarket?

My knowledge of the UK market is not deep enough to identify challenges or opportunities present in the European aftermarket that are going to impact the UK differently. The two industries on which our solutions are based, the technological and the automotive industries, are absolutely global and, therefore, my forecast is that any developments that occur will have very similar effects in North America, in the UK or continental Europe. Quite possibly, the differences will be to do with the speed of their implementation.

Q A

What are the potential effects of Brexit on the UK aftermarket and how is GT Motive planning to deal with them?

To be honest, I personally do not have a clear vision, apart from the volatility in the exchange rate between the pound and the euro, of the final effects of Brexit. In fact, I do not think there is anyone who can predict them reliably today.

Our plans are based on the fact that, independently of Brexit, in the UK there is a market with very clear needs that perfectly fits with the kind of solutions we provide. From a business point of view, this will not change, and the financial, legal or bureaucratic challenges that arise from Brexit will have to be managed as they appear.

Q A

How will you use GT Motive’s experience in the European market when growing in the UK?

We are bringing a winning proposal to the UK. From the point of view of knowledge, we have combined GT Motive’s experience of more than 40 years in Spain with the knowledge acquired in the last 10 years of our expansion in Europe, plus Mitchell’s 70 years of experience in the USA and, finally, with the local knowledge of our team and partner in the UK. From a technology point of view, our estimating tool, GT Estimate, has been tested by more than 25,000 users in 24 countries and the claims management platform has been tested by most of the insurance companies in the USA and Canada, plus two of the top ten carriers in Spain.

But, more importantly, we come to the UK with the humility, excitement and passion of a challenger. Our team knows that what has been done in the rest of Europe is a good start, but it does not guarantee anything in the UK. Our experience in Europe has taught us that each country is different and that it is essential to adapt to the reality of each one of them, to know their processes, to know their internal relationships, to have a

great capacity for listening and then to be agile and flexible in our implementations with the first clients.

Q A

How do you predict the European insurance market will continue to change in the next five to ten years and beyond?

It is a fact that we are in a slow but continuous process of growth of the economy in Europe, and it seems that, generally, the crisis continues to remit. This stimulates consumption; something that will also have repercussions in a greater use of automobiles and in the sale of new cars. Both effects will generate a rise in the frequency of claims.

On the other hand, the price of spare parts and paint, coupled with the technological sophistication of cars, will also put upward pressure on the cost of claims management.

Managing information to know the roots of these cost increases will require the incorporation of specialised talent in the claims departments and the demand for data-mining and trend visualisation solutions that will help predict future evolutions of the main KPIs. Therefore, claims managers are going to be the main agents in carriers again. CEOs will come to them looking for solutions to mitigate the rise in risk premiums and thus avoid price increases that might make them lose competitiveness.

Moreover, carriers’ customers are increasingly connected, no matter where they might be, thanks to smartphones. They require more self-service, they will compare more and they will not think twice about switching carriers. Because of this, carriers must listen, understand, inform and better satisfy their customers, and there is no doubt that their experience of the claim process will become increasingly relevant in customer loyalty policies.

So, demands for improvements in the control of the cost of claims processing as well as the experience of the insured when requesting services will be so relevant that claims managers will only be able to approach them with a true reengineering of the process, supported with the injection of new technology.

In a longer term (five to ten years), frequency might be reduced, but I do not foresee that the upward pressure on costs will cease.

From a more strategic point of view, the constant incorporation of technology in the automobile and the concept of the connected vehicle will give more prominence to manufacturers in claims management processes. Instead of a giant fight between manufacturers and carriers, I foresee alliances between them, in which each one of the parties provides the best of itself to give a service of excellence to their clients and their vehicles and, in this way, they maintain their loyalty to the two brands and do not go to their respective competitors. In this sense, I can see GT Motive and Mitchell, due to the exceptional relations that we maintain with both parties, as the technological alliance that is able to obtain the best of those alliances.

The International Automotive Market Supplement 09

Whether you’re in the auto repair business or an insurer, your goal is to restore customers’ lives after a vehicle collision

INTERVIEW

DEBBIE DAY Debbie Day, Executive Vice President and General Manager of Auto Physical Damage (APD), Mitchell, talks about technology within the automotive sector and how Mitchell is using new technologies to create and deliver better solutions.

Q A

Can you start by telling us more about Mitchell International?

Founded in 1946, Mitchell was born out of a desire to meet the practical demands of the automotive industry, delivering the industry’s first accurate, functioning car parts replacement resource for collision-damaged vehicles. Our focus on simplification, efficiency and access to accurate information drove our entry first into the collision repair market and then into auto physical damage claims.

Since then, we have extended our solution offering beyond collision repair and auto physical damage claims to include auto casualty, workers’ compensation, and pharmacy claims handling.

Today, we empower clients across the property and casualty industries by providing them with smart technology solutions, deep industry expertise, and seamless connections to the broadest range of solutions, networks and partners.

Our solutions simplify and automate each step in the claims handling and collision repair process, increasing productivity, accuracy and efficiency. Decision-making information and expertise is driven deep into the design of our solutions to help our clients make smart decisions around claims, and to keep them in compliance with financial, medical and other industry regulations. When clients use our software and services, claims are paid more accurately and efficiently, so our clients see improvements in their business performance and their customers see better personal outcomes.

In North America, Mitchell’s comprehensive solution portfolio and robust SaaS infrastructure enables tens of millions of electronic transactions to be processed each month for more than 300 insurance companies, including the majority of the top 25 American insurance payers, and more than 30,000 collision repair facilities. With an expanding global footprint, Mitchell products are currently in use across the Americas, Europe and Asia. Mitchell is headquartered in San Diego, California, and has approximately 2,500 employees.

Q A

Can you describe Mitchell’s Auto Physical Damage division?

The Auto Physical Damage division is one of three divisions at Mitchell: Auto Physical Damage, Casualty, and Pharmacy.

The division is comprised of more than 700 people committed to delivering the best solutions for our customers.

Whether you’re in the auto repair business or an insurer, your goal is to restore customers’ lives after a vehicle collision. Mitchell’s Auto Physical Damage division combines industry expertise and software solutions needed to deliver the best possible outcomes by optimising the repair and claim processes.

The way we deliver our solutions is to support an integrated workflow, exemplified by Mitchell Estimating and Mitchell Connect.

Furthermore, there are distinct solutions designed for specific usage, notably Mitchell RepairCenter™ for collision repairers and Mitchell WorkCenter™ for insurers.

Significantly, the Mitchell solutions that run in Europe, via our partnership with GT Motive, are the same solutions that run in North America; in other words, Mitchell WorkCenter is running in Spanish using Euros in Madrid, French using Canadian Dollars in Quebec, and English using US Dollars here in the US, but the platform is the same. The primary exception is the estimating platform; GT Estimate vs. Mitchell Estimating. The estimating platforms are different because of vehicle and marketplace differences.

Q A

In your opinion, what are the industry trends in North America that you foresee having an impact in Europe?

Our mantra at Mitchell is “safe and proper repair”. I believe there are at least seven trends, which are driving a need for much more rapid innovation in APD to deliver on safe and proper repair: 1. Changes in the vehicle technology itself – use of advanced materials and state-of-the art sensors 2. Challenges in selecting the location for a proper repair – we’re in a world where not every shop can repair any vehicle 3. Accelerating pace of change and information complexity 4. The need for repair procedures, in context, while writing the estimate and creating what we refer to as the “repair blueprint” 5. Varying guidance and position statements from the vehicle manufacturers 6. The increased requirement for a vehicle pre and post repair vehicle scan, the clearing of DTC codes, documentation of a clean scan, and potential target and calibration routines 7. The day when the car itself can declare First Notification Of Loss (FNOL) via telematics/connected car are upon us.

Ultimately, both insurer and insured benefit from a streamlined claims process, and computer vision is just one of the many AI technologies available to deliver on that The International Automotive Market Supplement 11

INTERVIEW

The value of AI applications in insurance is clear. It supports human decision making in a multitude of ways that could streamline the claims process, reduce fraud, and result in the better all-around outcomes for both claimant and insurance company We are looking at all seven in combination as we deliver our next generation of solutions.

Q A

What ties Mitchell’s heritage in the automotive market with these seven industry trends?

Similar to our partner GT Motive, who author vehicles based on the European car parc, Mitchell authors vehicles based on the North American car parc.

We are very proud of our 71-year heritage in authoring vehicles; this piece of the division is known as Mitchell’s Editorial and Content team. This formidable team are former parts and service technicians, as well as collision estimators and repair experts. They average 15+ years of industry experience. They all attend OEM Certified Collision Training, and many hold advanced industry certifications, such as Automotive Service Excellence or I-Car Certifications.

We have created over 3,700 unique vehicle services with over 165,000 unique vehicle configurations. We have also conducted more than 100 field time studies a year and have implemented thousands of repair procedures reflecting 25 major operations.

Mitchell also has its own Technical Research Center in San Diego where we measure new vehicles, conduct 3-D scans and expose the new models to our editorial staff to ensure the information we provide to our customers is valuable.

Q A

What do you view as Mitchell’s priority for technology delivery in 2017?

The absolute top priority for me is elevating all of Mitchell’s solutions to the Cloud.

We have been on this journey for many years, and in March 2017, we were pleased to bring Mitchell Estimating Cloud to production.

With Mitchell Estimating Cloud, estimators and appraisers are no longer tied to their desks and can work anywhere, anytime on various types of devices. Mitchell Estimating Cloud continues to deliver on Mitchell’s long heritage in the industry for delivering solutions in the most modern way possible. It’s also about choice: • Open system capable of running on any of 3 operating systems – Microsoft Windows, Apple’s iOS, and Google’s Android.

• Users may use their browser of choice – including Google’s Chrome, Apple’s Safari, and Microsoft’s Internet Explorer.

• Mitchell Connect’s intuitive design is a proven winner of simplicity by connecting carriers to repairers. Connect is running in well over 15,000 repairers today and is a large step forward in seamless communication.

Q A

What do you view as Mitchell’s most significant deliveries of 2018 and beyond?

Artificial intelligence and how it impacts the claims processes. For many of us, artificial intelligence (AI) still seems like the stuff of science fiction but, in reality, we interact with AI everyday through devices like Amazon Echo and Google Home. Gartner named AI a top strategic trend for 2017, and according to a recent study by Accenture, 85% of insurance executives surveyed plan to invest significantly in artificial intelligence over the next three years.

12 The International Automotive Market Supplement

The value of AI applications in insurance is clear. It supports human decision making in a multitude of ways that could streamline the claims process, reduce fraud, and result in the better allaround outcomes for both claimant and insurance company. The insurance industry itself is at an inflection point in terms of AI. There are so many AI-related technologies, they are all in different stages of development, and there are many things they can and can’t do - yet. The first step is to understand what each of these technologies are and where they have the potential to impact the claims process.

First, let’s cover the basics: artificial intelligence is a broadly used term to describe the concept of machines carrying out activities that would normally require human intelligence to do. There are many different technologies that are considered AI. Within Mitchell’s Auto Physical Damage division it’s about damage to the vehicle. Nearly every carrier in North America is utilising some form of photo-based estimating (PBE). It’s a logical next step to apply a form of artificial intelligence known as computer vision to the workflow of processing claims.

Q A

There’s a lot of buzz about self-driving cars. Are there other applications of AI within our industry?

One reason artificial intelligence is particularly relevant to P&C and collision repair industries is because of the role it plays in computer vision, and one of the most relevant applications for computer vision is self-driving cars. Computer vision basically seeks to enable computers to ‘see’ images and extract information from them, in much the same way a human does. It goes beyond sensors that simply capture data. It layers in deep learning; the ability to actually perceive, interpret and respond to what’s happening in the environment. And this ability is essential for vehicles to be truly autonomous.

But there are other cases for computer vision in insurance, uses that are having an immediate impact on the claims process. Take, for example, a couple of steps in the physical damage claims process that are based primarily on visual inspection: FNOL and repair vs. replace decisions.

With technology available today, photos taken by consumers and submitted via a mobile device as part of first notice of loss can be used to recommend a decision about whether or not the vehicle

The absolute top priority for me is elevating all of Mitchell’s solutions to the Cloud

INTERVIEW

Decision-making information and expertise is driven deep into the design of our solutions to help our clients make smart decisions around claims should be declared a total loss, potentially saving a costly tow to a repair shop. Similarly, these images can be used to determine whether to repair or replace a damaged part.

While these are just two cases, a recent report by Tractica indicates that the global computer vision market is expected to grow to $33.3 billion by 2019. Ultimately, both insurer and insured benefit from a streamlined claims process, and computer vision is just one of the many AI technologies available to deliver on that.

From the day Watson beat Ken Jennings at Jeopardy, artificial intelligence has captured our collective imagination. Just six years later, AI has gone from game show gimmick to one of Gartner’s 2017 Top Ten Strategic Technology Trends. Every day brings more news about the latest advancements, and verticals of all types are turning to it to help meet the evolving customer needs and business demands.

Q A

Could you give an example of potential applications for the insurance and collision repair industries?

So what might the P&C and collision repair industries learn from this? Here’s one scenario: just as the computer was taught to recognise various vehicles and damage, it can be taught to recognise vehicle make, model and year, type of damage, and the extent of that damage. Based on experience, it may then be able to extrapolate appropriate repair procedures. Now, imagine connecting that process to a consumer with a mobile device, like a claimant who uses their phone to take photos or video of an accident. Those images, when submitted as part of the first notice of loss, could provide an enormous amount of information for a given claim, perhaps even determining total loss without the expense of towing a vehicle to the shop.

And, looking even further down the road, what if those recommendations could then automatically trigger a series of activities that would increase the efficiency of the repair process: identify a qualified repair shop for that vehicle, create a preliminary estimate, place an order for replacement parts, and even schedule the work to be done. Sure, it may be a leap for now, but it’s likely to be our future.

We’re looking forward to extending our work with our partner GT Motive in Europe as we bring these solutions into reality.

Debbie Day Debbie Day is the Executive Vice President and General Manager of the Auto Physical Damage (APD) business unit. In this role she oversees an organisation dedicated to bringing expansive solution and service offerings to customers, while pioneering new standards and benchmarks in the auto physical damage claims and repairs markets.

Debbie has more than nineteen years of technology strategy and operations experience to her credit, as well as a passion for delivering product innovation and enabling terrific customer experiences.

Prior to joining Mitchell, Debbie was the Chief Operating Officer and Senior Vice President at ClosingCorp, and has also held executive positions at ACTIVE Network and CCC Information Services.

Debbie holds a BS in Systems Analysis from Miami University and an MBA from the Kellogg School of Management at Northwestern University.

The International Automotive Market Supplement 13

Communication is key to everyone and everything. If you look at the number of days delayed through bad communication processes, you are looking at a lot of wasted time and money

INTERVIEW

RICHARD TAYLOR As GT Motive expands into the UK market, Richard Taylor, UK Business Director, GT Motive, discusses GT Motive’s aims and propositions, and the developments the UK market will expect to see in the future.

Q A

What are GT Motive’s aims as it begins to enter into the UK market?

For too long the market has been looking for a viable alternative in the UK, and this has been the case since I worked in the insurance industry a number of years ago.

With the knowledge of what we have learnt in Spain and other European countries in the last ten years, and the strength of knowledge of our colleagues from Mitchell, we are in a really strong position to bring a proposition to the market that will challenge, test and enhance what is already being achieved. This will be done through a consultancy approach by working closely with the market to listen to what they actually want and need and not make this assumption for ourselves.

Q A

What advancements are GT Motive proposing for the insurance market in the UK?

Watch this space. But to give a general view, I have, throughout my career, worked very closely with my customers and listened to what they need as well as ensuring the proposition provides value; this will be key to our proposition in the UK. Better analytics, greater data protection (particularly with GDPR coming), an open standard platform (cieca) and partnering are where we will look to excel. We are also doing some really exciting work on Artificial Intelligence, which will help improve the repair process and efficiencies for all involved.

Q A

How has your experience within the industry shaped your plans and philosophies in GT Motive?

I was fortunate enough to work for one of the biggest insurance companies in the UK for 20 years, and a number of those years in the Supply Chain function managing estimating solutions as part of that role. This gave me a really valuable insight into how this can have a positive and negative effect on the repair industry. Additionally, in my last role at Euro Car Parts, I worked very closely with most of the Insurance Companies in the UK & Ireland, Accident Management Companies, Fleet/Leasing Companies and, of course, bodyshops.

These years of experience and my contacts have allowed me to already have some in-depth conversations with a number of potential customers about what they really want from a supplier in GT Motive. This has allowed us to look at adapting and localising our solutions based on my experiences and, more importantly, listening to what the customer wants and needs.

Q A

How has your outlook on the industry changed since you’ve started working in it?

I’m only a few months into this position but already you can see that there is a growing need for the market to get much closer, ensuring that the correct processes and decisions are made for the right reasons.

The interest I have received, even in this short period of time, has been great. It shows that there is still a real desire for change and the opportunity of working with a new and innovative supplier is an attractive proposition.

Q A

Is price the biggest influencer of choice, and what other factors have the greatest impact on customer decisions?

Price is always key; it’s a market where costs are continually rising, and therefore, price is always being questioned. You have a market position whereby there is a need to understand and control the costs involved in repairing a car, but when the ancillary costs are continually rising it becomes an issue.

However, because of how much technology has advancedover the last few years, the correct information, procedures and products are just as important as efficiencies for all parties involved in repairing vehicles. If you can get the product to the customer at a fair price, whilst demonstrating efficiency savings, then it’s important, but we also have to look at bringing something new to the market to keep up with the demands, for instance, consumer self-service.

Data is key to everything that happens in this industry. Not only does it demonstrate to each party how effective they have been in managing a repair, it should also allow each party to better understand where they haven’t

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INTERVIEW

We are also doing some really exciting work on Artificial Intelligence, which will help improve the repair process and efficiencies for all involved

Q

What do you predict will be some of the key technological developments in the near future that the UK insurance market should seek to adopt?

A

Artificial Intelligence. It’s been an eye opener for me and really interesting to understand what role this can play in the early adoption of information. This kind of ability will allow better decisions to be made about whether a vehicle should be written off as a total loss or for early notification of the parts needed to repair the vehicle.

This will help drive efficiencies and of course help to reduce the ever increasing costs seen within this industry. We have also seen, with the advancements of technology in cars, a need for repairers to get closer to the OEM’s to ensure vehicles are repaired using the correct and up to date standards and methods.

Q A

What role does data play in the UK market and what is GT Motive doing to support this?

Data is key to everything that happens in this industry. Not only does it demonstrate to each party how effective they have been in managing a repair, it should also allow each party to better understand where they haven’t. The most effective point for this to take place is in real time, in order to allow decisions to be effective and meaningful at that point in time.

Data Protection and Data ownership is also a hot topic at the moment, and I believe that the solutions we have in place will ensure that this is an area where our customers will be protected.

GDPR is coming in 2018 and I don’t think everyone really understands the full implications of what this will mean. It’s our job to demonstrate to our customers that we have systems and procedures in place to ensure that their data is secure.

Q A

How do you see communication improvement and customer service evolving in the future?

Communication is key to everyone and everything. If you look at the number of days delayed through bad communication processes, you are looking at a lot of wasted time and money. I’m a big believer in allowing all parties to communicate effectively in order to speed up this part of the process, and this starts right from the FNOL stage. Through using our Mitchell Solutions, we can demonstrate collaborative communication in real time.

Communication is also key from supplier to customer; as my grandma said to me many years ago, you have two ears and one mouth for a reason!

Q A

What else is on the horizon for the UK insurance market, and how will GT Motive respond to the changes ahead?

Technology, technology, technology! Particularly Artificial Intelligence powered by data, which will effectively allow the user to make considerable differences to the efficiencies of the repair process for all parties involved. We are able to use data to recommend the correct decisions to be made.

16 The International Automotive Market Supplement

Richard Taylor Richard started his working career at Norwich Union (Aviva) and spent twenty years there working across various parts of the business, and towards the end of his time, more across the motor insurance claims business. He successfully achieved claims costs savings whilst working within the Motor Supply Chain team Richard then spent eighteen months at Audatex, where he first cut his teeth in the estimatics business before being appointed

by LKQ and Euro Car Parts to set up the collision parts business, working with a number of insurance companies.

In May of this year, Richard joined GT Motive as the UK Business Director and Sales Director for Insurance Solutions. Throughout 2018 and beyond he will roll out the insurance proposition across Europe.

INTERVIEW

STEPHAN OTTO & RICHARD TAYLOR Stephan Otto, Senior Director, and Richard Taylor, UK Business Director, discuss the fleet and leasing opportunities that exist in Britain as GT Motive comes to the UK, and how previous experience within the European market can aid the process.

The UK market is quite unique compared to the rest of the world Stephan Otto

We will look to use our experiences within Europe to bring the same model and proposition to the UK Richard Taylor

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We are definitely setting the benchmark in this industry in Europe, with best in class data that enables the endto-end automation of processes and workflows within the industry Stephan Otto

Q

What is the plan for the UK regarding fleet and leasing opportunities?

Stephan Otto: Richard is heading the UK office, and I am the head of international fleet and leasing and overall consultant for fleet and leasing within Europe. I develop the overall strategies for international customers, and Richard takes care of all UK activities for the fleet and leasing sector.

In the UK market you don’t find the same situation that you have in the rest of Europe. We offer similar services outside of Europe, but in the UK we are quite optimistic that there are customers and a niche market that want to try something else, and we are happy to provide our services. But again, the UK market is quite unique compared to the rest of the world.

Richard Taylor: We will look to use our experiences within Europe to bring the same model and proposition to the UK. In essence, that is what we want to do with the fleet and leasing business; we want to use what we have already learnt and what we already do in other European countries to work with the fleet and leasing companies in the UK. We will go in and consult with the customers and find out what they are actually looking for that is specific to the UK market.

Q

Why is the UK market unique?

RT: It’s the dominance of the existing players in the UK market.

It’s so new to us, as is the way we want to go about working with partners through consulting and identifying what the customer needs, rather than what we think the customer wants. That kind of philosophy is what we will bring to the market. For us, it is not about whether or not there is a solution. It is about finding and providing a solution and making that work for the customer. It is very much a partnership oriented basis on which we are trying to operate in the UK. From my perspective, being in the UK, and from Stephan’s European perspective of fleet and leasing, just because the market has been a certain way for twenty years, it doesn’t mean that it is the right way of going about business, or even what the customer wants. For me, it is all about understanding the customer perspective.

Q

How successful have fleet and leasing opportunities been in Europe and the US?

SO: We are not very active in the US fleet and leasing sector for a number of reasons. In Europe, however, fleet and leasing is our fastest growing segment. We have two out of five of the top leasing companies as our international customers, and in Spain we have all leasing companies working with us, so we have a 100% market share. There is no international leasing company who doesn’t work with us, and two out of the top three are our international customers.

18 The International Automotive Market Supplement

Q

How will you use your experience of fleet and leasing within Europe and the US when targeting the UK market?

RT: The lesson we have learnt from our current relationships (more so in Europe than the US, because the fleet and leasing business is pretty much consistent across Europe) is that you are not going to get too much of a varying degree in terms of the way they work.

We want to take whatever is already working across Europe and bring it to the UK, allowing us to be able to work in partnership with any UK fleet and leasing business in order to give them the proposition that they are looking for.

SO: Spain, you could almost say, surprisingly, is a benchmark country in the leasing industry because it has been on the cusp for so long. The international players have to drive the costs down as much as possible, and today the operations side of leasing companies is seen as the benchmark for other countries in Europe.

Q

How have you adapted to meet the changes within the motor sector in the past year?

SO: We don’t envision any differences between the UK and European market. It is, in a way, the less dominant player in the market. But it is quite advanced in terms of solutions; you have to provide additional or innovative services to be successful.

Q

As new technology is being developed, how will this enhance the fleet and leasing opportunities that are present?

SO: The main driver is in the full automation of workflows. You need precise data, and we are definitely setting the benchmark in this industry in Europe, with best in class data that enables the end-to-end automation of processes and workflows within the industry.

There is also the involvement of telematics, which the UK is familiar with on the insurance side. But the fleet and leasing industry is moving into the telematics area as well, and we have a lot of experience in this from other markets that we can bring into the UK.

Q

What has been put in place in order to assist insurers and fleets in managing their repair networks?

SO: We have a work center platform and a home and fleet global platform. One platform is the insurer platform and the other is a fleet and leasing platform. We are bringing those two platforms into the UK in order to provide our services.

RT: GT Global will be the platform that we will bring to the UK as far as fleet and leasing is concerned.

INTERVIEW

Just because the market has been a certain way for twenty years, it doesn’t mean that it is the right way of going about business, or even what the customer wants Richard Taylor

Q

What have been some of the biggest changes in fleet management during your time working in the sector?

SO: To increase profitability, leasing companies are looking at the costs side of the business, which was probably another major change in the past. Many leasing companies were not very interested in trying to optimise their processes, but now everyone wants to optimise processes and reduce costs.

Q

Are there currently areas for improvement in the relationships between the different parties involved in the fleet sector?

SO: Definitely. Outside of the UK, leasing companies are building up their networks, not only for repair, but also service maintenance. They are also moving into the aftermarket, so they are trying to reduce the costs in the service and maintenance areas.

Q

Do you foresee Brexit having an impact on the UK Fleet & Leasing Market?

RT: Apart from the volatility of the exchange rate between the euro and the pound, I personally don’t have a clear vision of what the final effects of Brexit will be. Our plans are based on the fact that, independently of Brexit, the UK has very clear needs that fit with the kind of solutions that we provide.

Stephan Otto European Senior Business Director for Fleet & Leasing and Automotive Aftermarket, Central & East Europe and Business Partners Stephan Otto joined the company in 2010 with the mission of expanding the company in Europe. Until today, he has successfully developed the company in more 20 European markets and has built up many new business areas together with international customers. Also he was supporting the company´s shareholders when winning Mitchell International as the strategic partner. Stephan has an engineering background from Hamburg University and has spent over 20 years in the automotive industry, working initially for vehicle manufacturers in various international management positions before moving into the IT industry providing data and solutions for the automotive industry.

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INTERVIEW

KARL DURHAM Since formalising their partnership, DAC Holdings and GT Motive are working together to launch GT Estimate to bodyshops across the UK. Karl Durham, DAC Holdings, discusses their strategy for the UK and what they predict for the UK repair sector.

Q A

What is DAC Holdings’ role as a business partner with GT Motive?

DAC Holdings is the UK representative of GT Motive for distribution of GT Estimate, the web-based estimating solution, which is used by more than 11,500 bodyshops in 24 countries. Since formalising our partnership with GT Motive towards the end of 2016, we have worked very closely with the team in Spain and the US to share our insight into the marketplace and to launch the software to bodyshops across the UK. Our group of companies is active throughout the automotive aftermarket, with strong working relationships with accident management companies, insurers, vehicle manufacturers and bodyshops. We occupy a unique niche within the industry and are ideally placed to introduce the software to repairers and work providers alike.

Across our sister companies we draw expertise in a number of business-critical services including paint and consumables distribution, vehicle manufacturer repair programme management, bodyshop training and software development.

Our understanding of the UK market, which is quite different from those across the channel and around the world, has brought significant value to the partnership and has expedited the growth of the GT Motive proposition. We’ve been diligent and energetic in our efforts to prepare the market, and there can surely now be very few key players within the UK who are unaware of what GT Motive has to offer.

On a day-to-day basis, the GT Estimate team at DAC is responsible for the sales, marketing, technical support and account management of the UK customer base, and for introducing GT Estimate to the critical insurance and accident management stakeholders.

We have decades of front-line experience of vehicle damage estimation and software development, and an in-depth understanding of the day-to-day challenges of repairing vehicles within single-site bodyshops and national repair groups. We are true industry insiders and benefit from well-established relationships with the major stakeholders along the accident repair chain.

We’re convinced that GT Estimate is a fresh approach to estimating and a real change for our industry, and our customers agree. A key part of our marketing strategy was to get the software in front of bodyshops and to have it used in the wild, so to speak - live and unlimited. The beauty of GT Estimate is that it’s quick and easy for us to set up user accounts. As the system is entirely web-based, there’s no software to install or data updates to manage. All a bodyshop needs is an internet connection to start estimating.

20 The International Automotive Market Supplement

At present, there are opportunities to take significant strides in delivering a better experience by revisiting how the many different claims stakeholders share data and communicate with each other

INTERVIEW

We want to play our part in making claims handling less complex, less time-consuming and less costly Our on-boarding team gives online and in-person training, and the feedback we’ve been getting since day one has been great.

Everyone who uses the system comments on the functionality and how the high-quality graphics make part identification and selection quick, easy and error-free, but when it comes down to it, it’s all about the accuracy of the estimate.

One of our first priorities was to engage work providers and to invite a series of technical trials and benchmarking exercises to prove the accuracy and reliability of the system. We are currently working with several insurers and work providers, all of which have put the software through its paces as part of the acceptance process.

We have also managed the system’s integration with AutoFlow, BMS, Advance, AutoSoft and EVA, with Emacs, BodyNet and Motex next on the roadmap.

Q A

How does your strategy for the UK tie together with GT Motive?

There are many synergies between ourselves and GT Motive, not least our desire to do things differently and bring real change to the industry. We see what’s involved in the repair of vehicles from all angles. From the point of view of the driver, the repairer, the manufacturer and the insurer, there are significant opportunities to bring efficiencies, lower costs and reduce key-tokey times, for the benefit of all.

We are not merely in the business of bringing to market an alternative software platform; we want to play our part in making claims handling less complex, less time-consuming and less costly.

Across the group, I have long been an advocate of innovative solutions, which bring value to the vehicle repair industry, and GT Estimate certainly does that. We want to give bodyshops a choice when it comes to how they estimate repairs, and the more competition that can be brought to the estimatics field, the better! Bodyshops are at the heart of the industry and I’m keen to support repairers by taking a different approach to the business of generating estimates. GT Estimate has a completely transparent pricing model: you pay for what you use and you know exactly what each estimate costs. We believe in doing the right thing so we don’t charge high subscription or usage fees.

Though the UK market is ready for a change and ready for competition, we will need to continue to work hard to bring innovation, which makes a difference. We share this desire with GT Motive. Our partner has the same appetite to bring lasting change to the UK as they have done in Europe and the United States, and, like us, they believe in going back to basics to understand what needs to be done to drive efficiencies and derive the most value.

We have been busy consulting with repairers and work providers alike to develop an insight into the many different workflows that sit between the damaged vehicle and its return to the road, and we know that there’s a significant amount we can do as a partnership to improve the way the claims are handled, remove unnecessary costs and improve customer satisfaction.

It begins with the GT Estimate solution, but it goes much wider than that, with opportunities for new ways of working, more

streamlined system integrations, better and more secure sharing of data, and quicker total repair times.

We are committed to establishing GT Estimate as the software of choice within the UK. We know that won’t come overnight, so we’re introducing bodyshops to GT Estimate as their retail solution and for these customers to gain first-mover advantage as we bring on work provider partners.

We want GT Estimate to be completely customer focused, so we’re building a network of user groups to contribute to our development plans, working alongside our programmers in Spain and the UK. We’re committed to making GT Estimate the best software available, and with our customers’ help, we’ll achieve it.

Q

What do you predict will be some of the key technological developments in the near future that the UK aftermarket should seek to adopt? How will these affect the current key challenges in the UK repair sector, how is DAC Holdings addressing these, and how else is the rise of vehicle technology affecting the repair business?

A

There cannot have been a period in vehicle manufacturing where so much has changed as quickly as it has done over the last decade. The cars that roll off the production lines are unrecognisable from the vehicles we drove even just a few years ago. With the connected car, telematics, ADAS and new construction methods and materials (not to mention the inevitable growth of the electric car), there are fresh challenges everywhere for the aftermarket.

As vehicles become more complex and more challenging to repair, it is clear that it will be the high-quality bodyshops that are the businesses who will succeed. I believe that bodyshops will evolve into being specialist repairers of multiple vehicle marques. To support this, it’s critical that the manufacturers are proactive in the instruction and training of bodyshops and assure quality, efficiency and best practice across networks by diligent management of their networks.

I also think that we will continue to see a growth in repairs being triaged differently, with structural and cosmetic repairs being expedited via different solutions. New technologies will pave the way for many more repairs to be carried out outside of the traditional bodyshop environment. We are already seeing ADAS reducing the speeds at which accidents occur, resulting in more accidents with repairable damage and fewer requiring structural repair.

Drivers themselves use technology in all aspects of their business and personal lives, and are becoming more informed, more motivated and more discerning consumers. As insurance premiums continue to rise, customers will expect more, and they are right to! They will want to be able to shop around and will want their insurer to offer more to retain their business. When it comes to the repair itself, they will expect a high level of customer care and to have the progress of the repair at their fingertips.

At present, there are opportunities to take significant strides in delivering a better experience by revisiting how the many different claims stakeholders share data and communicate with each other.

This is an area in which GT Motive and ourselves have invested a lot of time and resources, and we are working with a number of

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INTERVIEW

The cars that roll off the production lines are unrecognisable from the vehicles we drove even just a few years ago work providers to enhance flows and find better ways of working.

There has been a great deal of discussion about the role of artificial intelligence within damage estimation, and that’s an area Mitchell, GT Motive and ourselves are paying very close attention to. My feeling is that though technology is a great enabler and can automate many manual processes, it cannot match the trained eye of a seasoned VDA. I can assure you that we are certainly not looking to replace technical skills with software. That’s simply not possible. What we are keen to do, however, is introduce the very best practices we see through working with likeminded companies and emerging technologies.

Q

How did DAC Holdings rise to prominence within the UK aftermarket? How does DAC Holdings promote synergy and supportive collaboration between the various brands operating under it?

A

DAC Holdings is a group of companies specialising in automotive coatings and consumables distribution, vehicle repair, technical training, vehicle manufacturer programme management, bodyshop software development and tier one supply.

We have become more active within the aftermarket as a result of a number of strategic investments, acquisitions and partnerships in likeminded and innovative companies and initiatives. Each of these bring a different dimension to the group’s activities and I’m delighted to say that we are able to play a valuable role across the aftermarket, whether it be in coatings and the products used to repair vehicles, in the training, which enables technicians to carry out repairs safely and effectively, in the design of software used to manage bodyshop networks and deploy jobs, in the operation of specialist same-day minor accident repair and, of course, in the fair cost premium estimating system!

Each business unit and special project has its own management and operational team, supported on a strategic and day-to-day level by the central team at DAC. There is great energy and a drive to succeed across the group, and I make it my responsibility to ensure that we all share the same vision. DAC is built upon integrity, innovation and collaboration, and we work hard to support one another in all that we do.

Q A

How has training and education at DAC Holdings evolved around the advances in the sector?

Our sister company, ITAS, designs and delivers specialist training courses for their vehicle manufacturer customers, ensuring that technicians employed across bodyshop networks are kept up to speed with the latest advances in technology, construction techniques and materials.

Repairing vehicles requires an incredible amount of skill and this is recognised in the training experience. Every delegate is given the opportunity to learn and demonstrate correct methodologies using the very best bodyshop equipment and unique training aids such as colour-coded vehicle shells to highlight different materials, pre-repaired shells for damage and repair diagnosis, and custom-built sill sections.

22 The International Automotive Market Supplement

Karl Durham Karl Durham is the Chief Executive and Founder of DAC Holdings, an organisation that manages investments in a number of businesses, mainly in the collision repair sector.

Karl started his career as a panel beater for his family’s car body repair shop and at nineteen set up his first business called Paintbox, which today employs over 300 people.

Elsewhere in the group, Cornerstone Technologies has been an avid promoter of skills training in the non-structural area for some time. We have seen the demand for cosmetic repairs surface and grow at a pace over the last couple of years and there are strong indicators that this will continue.

Bodyshops are looking closely at ways to repair more to ease their cash flow, speed up their repair times and increase their profitability, and are focusing on selling more specialised repair labour time and buying fewer replacement parts.

To facilitate this, it’s essential that body shops bring new skills into their facility and create the plastic and panel repair expertise within their business, which enables them to understand where repair over replace is appropriate and safe, and to carry out the repair in a cost-effective way.

Q A

What are your future plans and aspirations for DAC Holdings?

I want to be involved in a movement within the accident repair aftermarket, which levels the playing field for repairers, brings efficiencies and choice, and opens up the market for the benefit of all. I’ve set my heart on trying to play my part in bringing that about and that’s what really motivates me and the business units within the group.

INTERVIEW

OLIVIER BAUDOUX Technology is rapidly changing, and Mitchell is keeping up with the pace.

Olivier Baudoux, Vice President, spoke to Modern Insurance about how Mitchell is making the most of new technologies and how they will be utilising this in the UK.

Q A

What types of challenges or needs are you facing in North America that drive your portfolio strategy?

The biggest challenge is really the degree and speed of change in our industry, on several fronts. Consumer demand for mobile and self-service tools are driving changes in the way carriers deliver products and services. Changes in vehicle technology and complexity are changing how repair facilities diagnose and repair vehicles, and increasing claims volume is driving the need to find greater economy of scale, changing the way we operate our organisations. Change is definitely abundant, and it can be difficult. However, as a 70-year veteran, Mitchell has a lot of experience with change, and we are committed to being a guiding force, with a portfolio of partnerships and solutions that will help the entire P&C industry adapt to this rapidly changing environment, while maintaining our long-standing focus on claims process automation.

Q A

How does Mitchell leverage its history in the industry while being an innovator in this rapidly changing environment?

Fundamentally, Mitchell has always been a trusted information provider, and our commitment to providing the most complete and most up to date information, with which we ensure safe and proper repairs, has not changed. The mediums and methods we use to deliver or optimise that information have changed. However, this is where Mitchell finds its strength; using our history and experience as a guide for successfully adapting to changing environments. As technologies change, our capabilities change because Mitchell is continually assessing new ways to optimise our expertise through new technologies. Whether we are leveraging cloud-based solutions or more advanced artificial intelligence techniques, we are laser-focused on bringing the most relevant information to the right party, from proper OEM specific repair procedures, to insurer-defined compliance reviews and real-time seamless connectivity to our network of partners.

We are still providing information, but we are using the latest technology innovation coupled with domain expertise to help us add significant value to that information, and therefore, value for our customers.

Q A

How does Mitchell drive market insight and industry expertise into innovative product solutions?

One recent trend we see in the insurance market, driven by the “millennial generation�, is the increasing focus on the use of mobile technology as it relates to consumers.

Increasingly, attracting and keeping insurance customers will

Increasingly, attracting and keeping insurance customers will depend heavily on how well providers can do business as seamlessly across devices and mediums as consumers do The International Automotive Market Supplement 23

INTERVIEW

We’re just scraping the surface of what A.I. and predictive analytics can bring to this industry depend heavily on how well providers can do business as seamlessly across devices and mediums as consumers do.

This consumer demand applies not just to policy shopping or coverage modifications, but also to touch points throughout the claims workflow.Insurance customers aren’t seeking a “claim” when they have an accident, they are seeking solutions, and they want these solutions served up as painlessly as possible so they can quickly get back to their regular day-to-day activities.

This explains why, for instance, an intuitive, mobile-based First Notice of Loss solution (FNOL) can go a long way toward securing customer loyalty.

Imagine a minor, single car collision with a mailbox, for example.

Consumers expect service providers to help minimise disruption to their routine, and this means offering consumers what they are beginning to naturally anticipate – a few clicks or swipes of a mobile device to file a claim, get an estimate, get the repair started, and “get back to their regular day-to-day activities.”

This is why Mitchell offers several FNOL solutions to help carriers implement seamless mobile FNOL capabilities. To successfully meet consumer demand, carriers not only need an intuitive, device-agnostic mobile interface to make FNOL fast and easy, they expect flexible, fine-tuned solutions and tight integration with legacy claims management systems. Mitchell’s Consumer SelfService solutions are among the most configurable products in the Mitchell solutions offering. FNOL presents the carrier-specific questions, dynamically generated based on the carrier’s book of business, the consumer’s policy information and the accident scenario, to drive to the most optimal inspection method. FNOL can even predict carrier-specific decisions such as coverage and liability for the claim, information that used to be solely determined by an adjuster.

Depending on the severity of the accident and the carrier’s preferences, consumers can simply submit a claim and start the estimate themselves, or they can expedite the process further with Photo-based Estimating – capturing images directly from a mobile device during the FNOL process, using an intuitive, guided photo-capture application. Additionally, these new FNOL solutions not only have a direct impact on customer satisfaction, they make it possible to anticipate consumers’ needs later in the claims process. Let’s take our mailbox incident, for example. After a driver uses Mitchell’s FNOL solution to file a claim before heading to work, he or she then drops the car off at the recommended repair shop during their lunch hour where a pre-arranged rental vehicle is waiting. That same evening, the estimate and repair status are readily available and can be viewed on a tablet from the living room couch.

Our focus, ultimately, is to bring the latest and greatest technologies to the industry and provide value to our global customers, including those in the UK 24 The International Automotive Market Supplement

This is the level of “disruption” that consumers increasingly expect when interacting with service providers – quick, relevant selfservice interactions that allow them to do their business and return to their regularly scheduled activities. Insurance providers who do not adequately anticipate the influence that mobile behaviours have on their customers’ expectations may be doing so at their own peril.

Q A

What are the current technology trends impacting the US market, and how will you utilise these in the UK?

One of the biggest technology trends influencing the US auto repair and claims market is the use of artificial intelligence, machine learning and predictive analytics in assisting the estimating and claims process. AI has tremendous potential to enhance and automate claims workflow, or it can assist existing workflow by helping to elevate the right information in a way that assists and expedites claims management. Mitchell has been, and continues to be, the leader in bringing innovative solutions to our industry, and we do it by collaborating with world-class academic researchers, dynamic partners and by building our own in-house internal intelligence.

As an example, Mitchell is leading the industry and leveraging AI and the latest computer vision techniques to analyse photos, streamline workflow, minimise estimate errors and ultimately maximise reviewer efficiency. One such initiative is the Mitchell WorkCenter™ Assisted Review, which is now being released and made available to all US carriers. And, it won’t be too long before we extend its capabilities to our global and, in particular, UK partners. By utilising millions of damaged vehicle photos, historical already-settled claims, as well as in-house proprietary information, computers are “trained” to recognise vehicle damage and use computer vision to validate and optimise repair vs replace decisions. We expect this to help carriers achieve a more consistent experience, maintain estimate quality and be more selective about sending appraisers into the field, all while improving cycle times and productivity.

But even this is just the start. We’re just scraping the surface of what AI and predictive analytics can bring to this industry, and Mitchell knows that! Computer learning can likely be applied in a way that allows photo recognition of vehicle make, model and year, type of damage, and extent of that damage. Based on experience, workflow solutions could then extrapolate relevant part type, replacement guidance and proper repair procedures.

By leveraging predictive analytics, advanced machine learning, telematics data and insurer-specific best practices, Mitchell is committed to providing the most advanced solutions, capable of delivering a pre-populated repair order based on expected proper and safe procedures and an optimal blueprint.

Imagine connecting that process to a consumer with a mobile device, like a claimant who uses her phone to take photos or video of an accident. Those images, when submitted as part of the mobile first notice of loss, could provide an enormous amount of information for a given claim, and ultimately transform the claim process and the consumer satisfaction.

While these are exciting future use cases, the foundation for this capability really starts today with an ecosystem of solutions centred around our Mitchell WorkCenter™ claims management system and our tight integration with the GT Motive estimatic solution. Everything we are doing, from moving solutions to

INTERVIEW

Insurance customers aren’t seeking a “claim” when they have an accident, they are seeking solutions, and they want these solutions served up as painlessly as possible so they can quickly get back to their regular day-to-day activities the cloud, to automating first notice of loss processes through a consumer’s mobile device, to enabling artificial intelligence throughout the claim process, it all connects to the Mitchell WorkCenter™ ecosystem, and that is the solution we are bringing to the UK. Mitchell WorkCenter™ is a cloud-based carrier-facing workflow solution with always-on, real-time capabilities, proven security and scalability, and increasingly advanced technology built-in. As our products continue to evolve, we continue to add functionality to Mitchell WorkCenter™ and our overall Mitchell suite of solutions to ensure insurer-specific standards can leverage industry best practices while maintaining the flexibility to drive decisions, like centralised business rules and profiles management to maintain control and visibility over the expertise carriers wish to develop and enforce.

Mitchell is committed to applying advanced technology solutions to help automate the claim process and solve everyday challenges. Our focus, ultimately, is to bring the latest and greatest technologies to the industry and provide value to our global customers, including those in the UK. Whether by ourselves or with partners like Guidewire, Tractable, Bosch or OEMs, we focus on creating easy-to-use solutions for both repair facilities and carriers alike, creating a streamlined ecosystem to promote and ensure safe and proper repair.

Olivier Baudoux Olivier Baudoux is the Vice President, Global Product Management and Strategy, at Mitchell. He is an accomplished Top Technology, Digital Marketing, Operation Executive and NASDAQ Officer with extensive experience driving recordsetting revenue and profit growth within startups, Big-4 and Fortune’s Fastest US Growing companies. Olivier is currently heading the global Product Strategy and overall Product Management for the Auto Physical Damage (APD) solutions at Mitchell International.

From building companies out of his own garage, to ringing the bell for the best-growth company on the NASDAQ, Olivier’s multi-facets technical, operational and strategic skills are exemplary. In addition to serving as CTO, COO and Chief Digital Officer, Olivier has also been very involved with raising the company’s valuations through investment bankers, as well as institutional and accredited investors.

Olivier’s cultural diversity, multi-languages proficiency (English, French and Spanish) along with his triple citizenships (French, US and Canadian) have also been instrumental in large M&A activities as well as international growth expansion. He holds a Masters in Mathematics and Computer Science from prestigious European Universities and certifications from MIT in Cyber Security as well as Enterprise Risk Management from Stanford University.

The International Automotive Market Supplement 25

INTERVIEW

DAMIEN DOLAN Damien Dolan, CIO, explains GT Motive’s database and estimating services, and what it can offer the UK market.

Q A

How do you build your database to be sure it fits with the needs of the UK market?

We have built a single online database for all of Europe, which we localise for each market. This means the same models are available to all of our European clients, but we configure parts prices, language and maintenance schedules specifically for the UK. The models documented are based on UK market requirements but are available for all markets. With this, we can guarantee our UK users an inherently scalable, deployable and consolidated database, while at the same time, GT Motive gains tremendous economies of scale in terms of production and distribution.

Q A

Estimating is the core of your approach to the UK market.

What makes your database different?

GT Motive has been a provider of estimating services for more than twenty years, and of online estimating services since 2009. We provide all the relevant OE data for Mechanical, Collision and Maintenance estimating in the same database. Therefore, we offer UK users a one-stop shop for all their estimating needs.

As our estimating platform is online and can be accessed from desktops, laptops and tablets, we offer a one-click deployment for large networks. We also consolidate all statistical data and KPIs in real time on our estimating platform.

In 2013, we made the decision to collocate our online services platform. Our technology partner is Equinix. Our servers run in state of the art data centres, which means we have consistently delivered 99.9% uptime for our core estimating services since 2013, and we are fully committed to that level of service availability.

We understand the importance of our clients’ data. Data protection and our clients’ peace of mind are of paramount importance to us; we commit to compliance with all current Data Protection legislation and security best practices, for example GDPR requirements from 2018.

Q A

How do your users get the best possible data?

Our database is based on OEM data. It is updated every fifteen days with new models and the restyling of existing models.

Accuracy is our priority when it comes to data; the methodology we use in our Authoring Teams is learned from Toyota, and we have invested heavily in data automation systems and QA support 26 The International Automotive Market Supplement

Damien joined the company in 2008 as Systems Director and was promoted to CIO when GT Motive began its international expansion in 2013.

He is responsible for the security of the company computer systems and information with the goal of enhancing the strategic vision of GT Motive.

Damien holds a degree in computing and an MBA.

Accuracy is our priority when it comes to data; the methodology we use in our Authoring Teams is learned from Toyota, and we have invested heavily in data automation systems and QA support. We work to SLAs with all our important clients and we report our KPIs monthly.

Our parts prices are updated overnight in a batch process. Our commitment to our clients is to update our parts prices by the next business day.

We have a dedicated support centre for our users where we resolve queries, issues and mediate directly with the OE.

Q A

What’s new in terms of your solutions?

With our partnership with Mitchell we can bring their solution portfolio to the market. This means we can offer a complete DRP solution tailored to the UK. We are releasing a new version of our online estimating tool in Q1 of 2018. This version is built using the latest technologies and design patterns so it will be browser agnostic, will run on tablets as well as laptops, will be faster, more secure and intuitive.

INTERVIEW

PABLO LIĂ‘ARES Pablo LiĂąares, Consultancy Director, GT Motive, highlights some of the features being brought to the UK and how GT Motive will be working with Mitchell to provide the best solutions for their customers.

In the UK particularly, we have observed some situations where customer data is sent via non-secure channels and is potentially exposed to non-authorised parties

INTERVIEW

We are committed to helping our customers by delivering the best possible solutions, and part of that commitment is based on understanding their needs

Q A

Why does GT Motive put so much emphasis on a consultancy approach to the market and to customers?

We are committed to helping our customers by delivering the best possible solutions, and part of that commitment is based on understanding their needs and areas of improvement through our Solutions Consulting services. The approach is to dive deep into our customers’ processes, through interviews and onsite observations, and come back with a set of recommendations, and therefore, putting in place the best of our solution portfolio as well as our industry expertise.

Q A

Do you use a different approach for insurance and leasing?

Our origins as a technical data provider have enabled us to serve those two markets for their repair calculation needs, both for the mechanical and body repairs, and this has brought many positive synergies. However, besides those commonalities, the insurance and the leasing/renting business do have different needs and industry dynamics. Therefore, we provide a different approach, different sets of solutions and experts for each market.

Just to highlight some of the main differences we’ve found; the leasing industry has been able to develop repair networks faster as they can steer the volume easily, so they require more advanced solutions to manage their networks, whereas the insurance industry, in most of the markets we know, still needs to develop their networks to be similar to how the leasing industry is managing suppliers.

Q

Processes in the UK insurance market are very mature. What is GT Motive proposing to bring to the market to add a different dimension to what is already in place?

A

Indeed, we are excited to be in the UK market as it has been traditionally one of the most advanced markets in terms of managing repair networks in Europe. The DRP (Direct Repair Program) is well known in the USA, where Mitchell solutions perform incredibly well, and it has also been apparent in the UK for many years. We believe that GT Motive and Mitchell will create a more effective way to manage repairs through state of the art technology, which is probably where the UK market has been stuck in recent years due to a lack of any major technology upgrades in the established systems.

We are excited to be in the UK market as it has been traditionally one of the most advanced markets in terms of managing repair networks in Europe

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Mitchell WorkCenter™ solutions provide end-to-end claims management in the cloud, including customer self service capabilities to enable a digital customer journey, a new and comprehensive reporting suite or the integration of artificial intelligence to the process to achieve higher levels of automation.

We also bring through our expert teams, the knowledge and best practices from other European markets where GT Motive operates and with our partnership with Mitchell, we can bring the experience from the USA and Canadian markets as well.

Q A

Are Analytics and reporting a priority for you?

Analytics and reporting is a cornerstone of our value proposal. I will emphasise the three reasons why it is so relevant to us: • Firstly, we know how relevant standard reporting is to manage a business, either for big insurance companies and claims departments to smaller bodyshops, a powerful and reliable reporting process is key. Therefore, our solutions incorporate easy to use, configurable standard reports, dashboards and more advanced analytical tools.

• We believe in working as a technological partner in long term relationships, so we have organised an expert team of data analysts, which by teaming with our market industry experts are involved during the initial consulting phase to identify improvement areas through data, but also across the customer relationship lifecycle, providing expertise and recommendations based on data and using innovative analysis tools.

• If we cannot identify and measure clearly and easily those metrics and KPIs that are relevant for our customers, we won’t be able to keep our promises, so that´s one basic factor why reporting and analytics are important to us.

Q A

Do you consider personal data management as a priority?

It has been a priority since the beginning as we are very sensitive to our customers’ commitments and managing their personal data. Our solutions are also 100% cloud based so it has been always a top priority of our infrastructure and IT teams to exceed all the security standards and keep personal data secure.

The new European regulation GDPR coming into play in May 2018 is another important topic for our customers as it will involve stricter control of personal data. We are prepared to help our customers with those challenges. In the UK particularly, we have observed some situations where customer data is sent via nonsecure channels and is potentially exposed to non-authorised parties. We are committed to helping address this situation as our solutions are completely secured in the cloud so no customer data interception is possible.

Q A

How do you co-ordinate with your colleagues at Mitchell?

Since we started working together in 2013, the relationship has evolved naturally and all of the areas (IT, Solutions Consulting, Product etc.) maintain regular contact with their counterparts, and in many cases we can already say that we operate as one single company.

INTERVIEW

If we cannot identify and measure clearly and easily those metrics and KPIs that are relevant for our customers, we won’t be able to keep our promises, so that´s one basic factor why reporting and analytics are important to us Particularly in the solutions consulting area; we have regular team meetings to review current consulting projects in the US and EU. It’s also a common practice to exchange team members for specific projects depending on the project’s needs. It’s common for us to bring Mitchell experts to Europe to help us with a consulting project.

Q A

What new features will you be bring to the insurance and leasing market in the near future?

We are excited with the new capabilities we have in our Product Roadmap. Our Product and Development teams have been working hard in the last few months to bring some really cool features to our products. These include the incorporation of AI into the estimate review process, where the machine can assess the damage in a picture with astonishing accuracy. We’ve also been working on a complete set of customer self-service applications to help our customers enable a seamless digital claims journey for their policyholders. And a completely refurbished user interface for our leading estimating tool GT Estimate, enabling a complete mobile experience. These are just a few of the innovations we will be sharing with the market in the months to come.

Pablo Liñares Pablo joined the company in 2002 and has held several positions of responsibility at the company since then. In 2007, he was promoted to Product Manager and given the responsibility of the definition of products and features, and project management.

He has over 12 years of experience in IT and IT systems for the automotive industry. He also has an excellent knowledge of the insurance industry, fleet management and repair in general.

Pablo is a computer science engineer and holds a masters in international business.

The International Automotive Market Supplement 29

CASE STUDIES

Product Catalogue A selection of products that GT Motive, a Mitchell Partner Company, will be bringing to the UK.

MITCHELL WORKCENTERTM

Description

An end-to-end platform for the comprehensive management by insurance companies of the material damage of automotive claims.

WorkCenterTM allows you to manage the entire claim cycle with all the people involved in it from a single location: the company itself, the experts and the workshops.

The platform has separate modules for each phase of the process: claim opening, work order creation and distribution, review, validation, auditing, reporting and customer satisfaction surveys.

Benefits

• Profitability: lowers the average cost for insurance companies.

• Loyalty: increased customer satisfaction.

• Customisable: WorkCenterTM is a 100% modular solution that can be configured for each insurance company’s needs. Up to seven different modules and services can be implemented on the common services platform, to cover the specific needs of the claim management cycle. These modules can be connected, yet remain independent of each other, allowing a custom platform to be configured for each company.

• Integrable: WorkCenterTM uses an after-sales sector open information exchange system. This enables fast and flexible integration, and it can also be integrated with other market solutions.

• Portability: WorkCenterTM has various specially tailored apps, for use on tablets and smartphones, which cover different parts of the process, where portability is a key factor.

• Real-time information: the process is itemised from beginning to end thanks to reporting.

• Guaranteed security: WorkCenterTM achieves the highest information security and availability standards thanks to its ITC infrastructure housed in one of the most powerful and secure data centres in Europe, located in Amsterdam (Holland), which is used by the continent’s main financial entities.

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Features

• Outsourcing Platform: WorkCenterTM uses a SaaS (Software as a Service) model that is much more advantageous to the insurance company than the traditional in-house model. As a result, it reduces the initial investment and the risk associated with it, reduces the cost of maintenance, updates and immediate new functions, has better support for incidents and, more importantly, allows the company to focus on its core business and not on managing its own IT services.

• Online: designed from the outset to take full advantage of the Internet, WorkCenterTM enables access to up-to-date information anytime, anywhere.

• Integrated with GT EstimateTM collision damage estimating software.

• Intelligent control: a system that allows the best inspection method and resources to be used at the time the form is opened, according to the claim’s key features, in a totally flexible way.

• Route management: allows the experts’ routes to be organised and optimised using geolocation data and a patented algorithm of Mitchell’s that suggests the expert’s optimum route according to various parameters.

• Traceability: the platform allows the tracking of the whole activity of the claim cycle.

CASE STUDIES

GT ESTIMATETM

MITCHELL CONNECTTM

Description

An online solution, integrated with Mitchell WorkCenterTM, for complete process and workflow management for vehicle repair workshops.

Description

Claim estimation software for calculating the cost of the repairs to be made to a vehicle following a collision, mechanical breakdown and/or inspection services.

Estimate provides all of the mechanical and bodywork information on parts, labour and paint needed by automotive after-market professionals.

Benefits

• Time saving: online solution, always up to date. No installation.

• Work anywhere: a version tailored to every device.

• Integrable: integration with the main DMS management tools on the market.

• Speed: identification of the exact model from its number plate.

• Accuracy: equipment identification through VIN QueryTM.

Features

• 97% of the UK vehicle fleet covered.

• 36 manufacturers and over 1,100 models documented.

• More than 5,200 items and an average of 1,700 parts per model.

• Official maintenance for 100% of models.

• OEM Information.

• Manufacturer and AZT tariffs.

• Number plate query: identification of the chassis number by entering the number plate (optional).

• VIN QueryTM: identification of the vehicle’s equipment through the VIN number or chassis number (optional).

ConnectTM allows the workshop to manage work orders uniformly in a single environment, in a fully collaborative way with other parties in the repair process, such as the company, the expert or the end customer.

Benefits

• Efficiency: thanks to the elimination of manual and/or paper processes, with ConnectTM you can achieve an optimisation of the repair management.

• Process agility: absolute traceability for the workshop, the insurance company, the expert and the end customer, thanks to the incorporation of collaborative workflows.

• Oversight of the estimate costs: complete traceability of the costs of the various operations to be performed on each vehicle, with a status and progress history.

• Monitoring of the repair status: all the information about the steps of the repair is visible to the workshop, the insurance company, the expert and the end customer: vehicle being repaired, painting, delivered... etc.

• Monitoring of services: the solution allows the additional services offered by the workshop to its customers to be monitored: replacement vehicle, pick-up and delivery, vehicle rental, etc.

Features

• Fully digital workflow.

• Manageable from anywhere, on any device with an internet connection.

• Integrated with GT EstimateTM, for performing/modifying estimates.

• Integration with the most widespread management tools (DMS) on the market.

• Linked to spare parts platforms for supplies.

• Internal messaging system for communication between those involved in the repair process.

• Electronic billing.

For more information please visit http://gtmotive.com/en/products or http://www.mitchell.com/products-services

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