Fast-tracking automotive market operations: Trends in automation for auto insurance and lending

It’s no secret that the automotive industry is a leader in innovative technological advancements—fully electric vehicles, self-driving cars, and AI-focused interfaces are all part of the rapidly evolving landscape of the automotive industry.  As consumers, these advancements have revolutionized the way we approach various aspects of the market. But the way that the automotive industry is using automation and technology internally for other processes is just beginning. Auto financing, lending, and insurance are just a few areas that will benefit greatly from further technological adoption. With the rise of automation and digitization using various software and consumer data platforms, traditional methods are giving way to streamlined processes that offer convenience, efficiency, and enhanced customer experiences.

As the automotive market continues to expand and evolve with changes in market demand, industry players are seeking innovative ways to fast-track their operations, particularly for quoting and binding auto insurance policies and for auto financing and lending. Whether you're an insurance provider, a lending institution, or a car dealership, harnessing the power of automation, particularly with real-time data and consumer-permissioned data platforms, can help you stay competitive in this dynamic sector.

Exploring auto insurance and industry trends 

The automotive industry finds itself navigating a challenging landscape as it enters 2023 and beyond. Economic headwinds such as inflation, rising interest rates, potential recessions, and persistent supply chain issues have cast a shadow over lenders, insurers, and their consumers. These conditions, which intensified throughout 2022, have caused a second wave of distress, putting pressure on profit margins and revenue growth. It is evident that these challenges will continue to persist throughout 2023, especially as the automotive industry holds onto antiquated internal processes and manual verification to approve loans, insurance, or employment for their consumers. So what does it mean for the different business sectors that deal in auto lending and auto insurance?

Auto insurance industry trends for auto lenders and dealerships

Over the past 18 months, there has been a notable surge in demand for auto loans, which is attracting a diverse and expanding range of lenders to the space thus creating a more competitive landscape. This new range of lenders include not only large and regional banks, but also online retailers and fintech companies.

For existing players in the automotive sector, including lenders and dealerships, it is crucial to prepare for potential tech disruption and maintain leadership status. Capitalizing on favorable market conditions, they should seize opportunities to boost loan origination and explore initiatives that enhance profitability, including taking advantage of automation solutions and fostering stronger relationships with dealerships. Additionally, given the current economic uncertainties, heightened attention should be placed on managing delinquency rates effectively.

Auto lenders and dealerships must remain vigilant, adaptable, and proactive in order to thrive amidst growing competition and shifting consumer demands. By leveraging market dynamics, optimizing operational strategies, and prioritizing risk management, they can navigate the changing industry dynamics and continue to serve their customers effectively.

Auto insurance industry trends for auto insurance companies

The global auto insurance market is undergoing significant changes due to evolving mobility trends, vehicle technologies, and shifting customer expectations. The rise in popularity and accessibility of electric vehicles, the popularity of ride-sharing, and improved automobile safety will drive down repair and replacement costs.  These trends, according to EY, leader in capital market analysis, will lead to an overall decrease in auto insurance premium costs as well as total personal lines of auto insurance. The anticipated decrease means that traditional insurance carriers must pivot to maintain their relevance in the industry, including by embracing technology to drive profitability and streamline their processes. 

Auto insurance industry trends for employers with gig workers

The gig economy is experiencing remarkable growth, with delivery driving and ride-sharing emerging as highly sought-after gig work options. In the United States alone, there are currently around 3.2 million delivery and ride-share drivers. This trend offers businesses a convenient avenue to drive growth without the need to hire full-time employees.

However, despite the numerous opportunities presented by the gig industry, hiring gig workers, especially delivery drivers and ride-share drivers, brings a new set of financial and liable risks to the businesses that hire them. For businesses to stay ahead of these risks, verifying that gig employees have the necessary auto insurance coverage as a requirement for driving on behalf of the company is crucial. And, while verifying this coverage can be a time-consuming and costly process for businesses, automated auto insurance verification can be the solution.

The benefits of streamlining automotive market operations with real-time data

For auto lenders, dealerships, insurers, and employers, automation is the solution for removing current and future barriers to efficiency and profitability. Consumer-permissioned data (CPD) and automated document processing platforms allow these businesses to improve their internal processes for income and employment verification (VOIE), auto insurance verification, quoting, and even underwriting. With instant access to the data needed, pulled directly from a consumer’s online account or a verified uploaded document, the time-consuming and costly process of manual verification becomes obsolete. The benefits of real-time data via CPD and document processing are clear: 

• For auto lenders and dealerships:  Instead of users having to manually verify income and employment for prospective borrowers or provide proof of auto insurance, now borrowers can log directly into their online payroll and insurance accounts to give you access to their data. This new method of providing auto loan VOIE and insurance verification is a faster, safer & easier way to approve and underwrite car loans. 

• For auto insurance companies: Pull prospects' info instantly via CPD from an online insurance account and pre-fill digital applications for faster and more efficient quoting. Also, access relevant income, employment, and education data to provide relevant discounts and personalization.

• For employers: Verify and monitor employees’ auto insurance instantly to reduce risk, streamline your operations, and reduce admin costs from primary source accounts (an employee’s online insurance account).

Adopting consumer-permissioned data and automated document processing has the potential to revolutionize the operations of the consumer-focused automotive industry. To ensure a successful implementation, it is essential to prioritize efficiency throughout the data collection process, tailored to your specific business needs. The good news? MeasureOne offers accessible consumer data solutions suitable for businesses at various levels of integration and access.

Hosted portal: With no development involved, MeasureOne provides hosted web experiences to access and share consumer-permissioned data

API: Integrate the consumer experience natively into your application. Results will automatically populate your platform

Third-party platform: MeasureOne integrates with third party platforms allowing for easier integration and deployment using your existing operational workflow

MeasureOne is leading the automotive industry in automation

MeasureOne’s consumer-permissioned data and automated document processing platform enables instant access to consumer data in just a few steps, leading to faster decision-making for your automotive business’s VOIE, insurance verification, and data needs.

When you partner with MeasureOne, you also gain:

• Marketing-leading coverage/conversion: 100% coverage of US employees, 95% coverage of insurance carriers. Plus leading coverage in other data domains.
• Lowest costs in the space: MeasureOne’s platform gathers data by API rather than manpower to verify documentation and connect to source data and comes at a lower cost than leading competitors.
• Better technology and scalability: Technical ability to deliver a one-stop-shop for consumer data for your current and future needs including VOIE, renters insurance verification, and more.

MeasureOne brings secure, transparent data to the table for the benefit of auto lenders, dealers, insurers, and employers. Are you ready to step into the digital age and transform the automotive industry?