Essential information for end of life vehicle dismantling, depollution and recycling

AutoDrain L
OHRA
Email
Print

Implementing environmentally sustainable claims servicing by encouraging repair over replacement of vehicle parts

 

‘Implementing environmentally sustainable claims servicing – by encouraging repair over replacement, reducing waste or improving waste management, or by providing or requiring the use of recycled parts – can contribute towards decarbonising the claims process at either no or low cost’

Implementing environmentally sustainable claims servicing by encouraging repair over replacement of vehicle parts p two

Today the University of Cambridge Institute for Sustainability Leadership’s (CISL) ClimateWise initiative has published a new white paper on climate product innovation which includes a section on encouraging repair over replacement of vehicle parts to reduce waste.

 

Implementing environmentally sustainable claims servicing by encouraging repair over replacement of vehicle parts pThis paper explores the critical role of the insurance underwriting in enabling the transition of the wider economy towards decarbonisation. Opportunities to incentivise climate mitigation and support the growth of low carbon solutions exist in the design and pricing of policies, claims and the provision of risk advisory services.

The industry needs to rapidly lean in to meet the existing risk transfer and advisory needs of clients’ decarbonisation pathways, to anticipate their evolving demands and needs and incentivise their transition.

To accelerate the industry’s response, this white paper represents an initial contribution from ClimateWise. The paper highlights the current market state and further aspects for development across nine key opportunity areas for insurance product innovation to support climate mitigation, with a focus on commercial lines that will drive the transition:

  1. Enabling and incentivising low carbon choices
  2. Mainstreaming the encouragement of climate mitigation through efficient and resilient reinstatement
  3. Implementing environmentally sustainable claims servicing
  4. Enabling capital flows towards green solutions through risk transfer solutions
  5. Creating removal-based carbon offsets through natural capital protection
  6. Scaling emerging and existing low carbon and net-negative technologies and start-ups
  7. Supporting the sustainable decommissioning of carbon-intensive assets
  8. Developing risk advisory services to support clients’ climate mitigation understanding and approach
  9. Developing solutions for increasing climate legal liability and environmental litigation

In the ‘Insurance product innovation opportunities for net-zero’ section, point 3. Implementing environmentally sustainable claims servicing, it states:

“Claims servicing can represent a substantial source of emissions within insurer’s own supply chains, and servicing of claims can lead to waste and ongoing emissions. Implementing environmentally sustainable claims servicing – by encouraging repair over replacement, reducing waste or improving waste management, or by providing or requiring the use of recycled parts – can contribute towards decarbonising the claims process at either no or low cost26. Innovative responses to this challenge are widely seen in personal motor and property insurance, these are, however, yet to be adopted at similar scale across wider business lines:

  • Encouraging ‘repair over replace’: RSA is working with suppliers to encourage a ‘repair over replace’ philosophy by recommending sustainable claims solutions for customers to consider.27 In 2019, through this repair over replace approach to claims servicing for motor insurance, RSA repaired 40,000 windscreens, saving 1,500 tonnes of carbon emissions and 540 tonnes of glass waste going to landfill. During this repair process, customers are also incentivised to use electric vehicles.
  • Giving policyholders recycled options: Tokio Marine & Nichido also promotes repair over replacement, and promotes the use of recycled automobile parts for personal motor insurance customers for any repairs and replacements. 28

The report was written in collaboration with Deloitte and Icebreaker One, and builds on previous research by ClimateWise examining policy opportunities to support net zero underwriting

Commenting on the release of the new paper, Dominic Christian, ClimateWise Chair, Global Chairman Reinsurance Solutions, Aon, said:

“ClimateWise members seek to be at the forefront of product innovation that drives and enables the transition to net-zero and we hope this new white paper will lead the way for greater collaboration within our industry and with external decision-makers to support the urgent need to tackle climate change.”

26 CISL. (2010, November). Sustainable Claims Management. Retrieved from: www.cisl.cam.ac.uk/businessaction/sustainable-finance

27 RSA. (2021, April). A Confident Future: Building resilience through responsible business. Retrieved from: www.rsagroup.com/the-thread

28 Tokio Marine Holdings. (2020). Sustainability Report 2020. Retrieved from: www.tokiomarinehd.com/en/sustainability

To download the paper, click here

Source www.cisl.cam.ac.uk

ASM

More News

green parts specialists

ATF Professional is produced by ARW- Group LTD, which is registered in England and Wales with Company Number 14914439

The views and opinions expressed on ATF Professional are solely those of the original authors and other contributors. These views and opinions do not necessarily represent those of the editor, publisher or staff of ATF Professional.

Contact

01432 355099

© All rights reserved

Owain Griffiths

Owain Griffiths

Head of Circular Economy at Volvo Cars

Owain joined Volvo Cars in June 2021 to lead Circular Economy in the Global Sustainability Team. The company has committed to being a circular business by 2040 and has financial, recycled content and CO2 based targets for 2025, all of which Owain is working across the company to make happen. Owain previously worked for circular economy consultancy Oakdene Hollins where he advised businesses on evidence led circular economy implementation. 

Turning into a circular business and the importance of vehicle reuse and recycling.

The presentation will cover the work Volvo Cars is doing to achieve 2025 but mainly focus on the transformational work towards 2040 and the business and value chain changes being considered. Attention will be paid to the way vehicles are being dealt with at the end of life and the complexities of closing material and component loops. Opportunities and challenges which Volvo Cars is facing will be presented including engagement with 3rd parties and increasing pressure from stakeholders.

e2e awards logo

e2e Total Loss Vehicle Management [e2e] is the UK’s only salvage and automotive recycling network with nationwide, environmentally compliant sites delivering performance resilience and service reliability to the insurance and fleet markets.  The network’s online salvage auction www.salvagemarket.co.uk drives strong salvage resale values and faster sales.  e2e’s salvage clients have access to the network’s stocks of over 5 million quality graded, warranty assured reclaimed parts. 

The power of the network model means e2e has the ability to influence industry standards and is committed to continually raising the bar whilst redefining the role and perceived value of the salvage operator.  Network members adhere to robust service level agreements, against which they are audited, in order to ensure performance consistency and a market leading customer experience.  

The salvage and recycling operating environment is evolving rapidly, and e2e is anticipating, listening and responding to changing market needs.  Regulatory compliance, ESG, reclaimed parts, customer experience, EVs, new vehicle technologies, data and reputation risk are just some of many considerations linked to the procurement of salvage services.  e2e will drive further added value to clients and members through the adoption and application of emerging technologies, continuing to differentiate its proposition and position salvage services as a professional partnership. 

New Client Special Offer

20% Off

Aenean leo ligulaconsequat vitae, eleifend acer neque sed ipsum. Nam quam nunc, blandit vel, tempus.