Sustainability - The 4th dimension of the damage triangle

The claims areas of insurance companies are caught between fast settlement and customer satisfaction, as well as economic pressure and the need to conserve resources. The topic of sustainability is increasingly coming into focus, as it can act as a link between customer demands and volatile costs. In addition, the regulator is creating external pressure with new ESG requirements - the traditional beliefs in “damage” are evolving.

No Longer Just "A Green coat of paint"

Sustainability in claims has long been more than just image cultivation or a footnote in the ESG report. Repair instead of replacement, the use of used spare parts or the use of a sustainability-certified (claims) service provider network are becoming strategic levers - economically sensible, relevant from a regulatory perspective and increasingly also a differentiating feature from the customer's point of view. Nevertheless, implementation is challenging because it requires a balancing act between efficiency/risk, customer satisfaction and the structural conditions in the partner network.

Five levers for more sustainability in damage

In our view, five fields of action have emerged, all of which can already be observed in the market at various degrees of maturity:

• Managing behavior and promoting prevention - incentives, education and raising awareness - the most sustainable damage is that which does not occur in the first place
• Adjusting “daily doing” - fully digital communication and archiving (reducing paper consumption), earlier sleep mode for PCs, sustainable mobility for employees, etc.
• Select and manage sustainable service providers - only work with service providers that meet defined sustainability criteria and are certified
• Repair instead of replacement - focus on repair, use of new technologies for extended restoration instead of procuring new parts
• Strengthen the circular economy - targeted use of used and reconditioned spare parts, for example from accident vehicles

Furthermore, thanks to the EU Data Act, new data streams will also emerge in claims, which will allow prevention, customer interaction and operational management to be more closely interlinked - data as an “enabler” for intelligent, comprehensive and sustainable claims management. There are opportunities in the context of prevention in particular, for example in the combination of weather data, vehicle/telematics data and internal claims data - not only can claims then be settled efficiently, they can also be actively avoided in some circumstances.

What counts now - key success factors for insurers

1. Sustainability is an operational control lever It is no longer just about regulatory obligations or the “green coat of paint”, but about the opportunity to reduce costs, improve processes and meet customer expectations - along the entire claims value chain
2. Customer awareness exists - implementation requires trustMany customers are open to used parts and sustainable solutions - but only with clear quality, fair communication and real added value that they can also feel
3. Circular economy requires active controlWithout standards, Without standards, platform integration and coordinated partner management, the use of used parts remains inefficient and ineffective - the market should act as a unit here in order to ensure viable quantities of vehicles for domestic parts recycling
4. Digitalization and prevention are key enablersTelematics, AI and data analytics make it possible to avoid damage or to be more ecologically efficient, avoid damage or regulate it more ecologically efficiently - and can also significantly improve the customer experience
5. Standardization and fair partner remuneration are critical to successWorkshops and service providers must be integrated and motivated by clear quality specifications and economically viable models, as they are ultimately the necessary vicarious agents

From start to strategy - how sustainability can be anchored

A first step is to take stock in a structured manner: Where does the company stand today in terms of sustainability in claims management? What initiatives already exist - and how effective or mature are they? On this basis, an end-to-end E2E view along the entire claims value chain is recommended in order to systematically identify existing gaps, develop target images and derive prioritized packages of measures.

The aspiration should not end with selective individual initiatives or symbolic ESG conformity. The decisive factor is the gradual transition from a “green coat of paint” to a consistent, operationally anchored sustainability strategy. A clearly defined roadmap can help to reduce complexity, identify dependencies and effectively dovetail sustainability with existing transformation programmes - for example in digitalization, partner management or product development.