Such app-driven interactive reporting systems for obtaining estimates and facilitating other aspects of claim settlements and collision repairs are en route to becoming a viable option among insurers and their tech-savvy policyholders.
“Everything is moving in this direction – it was the talk of NACE,” says C.J. Przybyl, a co-founder and president of Snapsheet, which has an app similar to Allstate’s that is “flipping the insurance world upside down,” he reports. “Instead of driving to a body shop you can submit photos on your smartphone, receive an estimate within hours and either take a direct-deposit payout or schedule an appointment at a body shop. We have locked up contracts with top insurance carriers and are entering hyper-growth mode.”
And although they are competing systems, “the advertising from Allstate really helps” in attracting attention to the technology’s benefits, Przybyl observes.
“It’s more than just an app; it’s a process,” he explains. “Customers really need to be walked through the (repair and settlement) process. It marries all this information together.”
Basically it functions via a crash victim taking smartphone photographs of the damage, and a staff of appraisers at the other end of the connection prepares the estimate and disseminates the data for subsequent actions.
Consumers comfortable with living their lives in consistent online connectivity are readily embracing this technology, according to Przybyl. “People take pictures of their burgers at restaurants,” he quips, noting that applying the same mindset to post-wreck procedures is a popular solution. “It’s all ages and groups of people,” he says, adding that “we’ll be going international, but first we want to get our arms around it in the United States.”
Repairers are getting acclimated to the technology as well, Przybyl points out. Although insurance companies are hosting these apps in an industry where discord between the parties is not an unusual occurrence, “we have a fairly good relationship with body shops,” he explains. “We’re not taking anything away from them; we’re just supplementing the process. The best thing you can do is get an estimate into your customer’s hands. It all comes down to the customer’s choice.”
The app is available free to policyholders; insurers pay Snapsheet a fee per estimate, and the system has been programmed for easy setup among the participating carriers. “They can just plug and play,” says Przybyl. “We’re just like a virtual appraiser.”
More than half of Snapsheet’s claims close the same day, with most being settled within two days, he says. Thus far the company is averaging 50,000-plus transactions per year.
Media attention has been rolling along at a steady clip as publications such as Forbes and the Chicago Tribune have profiled the firm’s prestigious financial backing and management expertise originating in the venture capital sector and other high-profile businesses.
As a renowned executive, college professor and venture capitalist, board member Howard A. Tullman has founded more than 12 companies over a 40-year span, including CCC Information Services in 1980.
Brad Keywell, another board member, is the co-founder and director of Groupon who is also managing partner of Lightbank, a venture fund specializing in technological innovations, while board member Dennis Chookaszian is the former chairman and CEO of CNA Insurance; COO David Bauer was previously the CIO at Copart.
“From the investor point of view this was a no-brainer,” says Przybyl, who had served as a global account manager at Freescale Semiconductor.
Snapsheet co-founder and CEO Brad Weisberg’s background includes several successful entrepreneurial endeavors. He latched onto the idea for the company in 2005 when he walked out of a Red Lobster in an unfamiliar town and discovered that he was a victim of a hit-and-run parking lot incident. An aggravating search for an acceptable body shop – he knew nobody to turn to – netted estimates ranging from $300 to $1,200.
That unpleasant turn of events motivated Weisberg to establish BodyShopBids, which was aimed at the motoring public. Realizing that the average driver has a crash just once every seven years, in 2012 the firm’s focus shifted to insurers and the name was changed to Snapsheet – which Weisberg describes as “the only self-service claims solution from dispatch to settlement, providing faster cycle times and accurate estimates.”
According to Przybyl, opportunities abound for experienced appraisers and estimators who join the Chicago-based operation. The pay is good, moving expenses are covered and the office setting offers relief from a noisy shop floor. “We have a very good, fun atmosphere here in Chicago,” he reports, adding that top skills are required to pass pre-employment knowledge tests for the fast-paced environment.
“You’re not just in the field writing five estimates in a day anymore,” says Przybyl. “They’re hired for their exceptional ability to provide precise estimates by looking at the photos submitted through the platform.”
Connectivity on-the-go
“The flexibility of the customer uploading the photos at their leisure provides the option for the customer to be serviced when, where and how they desire,” says Allstate spokesman Justin Herndon. “QuickFoto Claim provides a convenience for our customers to service them fast, fair and easy.”
“More than half of Allstate’s customers have a smartphone, so connectivity on-the-go is clearly important to them,” says Executive Vice President Michael Roche, “and that means it’s important to us.”
Developed in-house by the insurer, Herndon cites an unsolicited testimonial from a satisfied end-user of the system: “I have to say that using the app to upload the photos of the damages to my vehicle was so helpful. I did not want to wait to have my vehicle looked at by an adjuster. I was able to send over the photos right away and an adjuster contacted me via the app the next morning. I would urge you, and I hope you continue, to offer this option.”
Body shop owners are also reacting with a “favorable response,” according to Herndon. “As with any inspection method we regularly work with the collision repair centers to quickly resolve any issues that may arise.” He further describes the impact as maintaining the “same relationships as other methods of inspection.”
Smartphones take hold
At Mitchell, “we are exploring the market opportunities for that type of a product, but don’t have anything on the market at this point,” says Greg Horn, vice president of industry relations, referring to self-reporting systems similar to Snapsheet and QuickFoto Claim.
“I think there’s a market for it, but I don’t think it will take the market by storm,” he says, noting that not everyone is app-savvy, and many crash victims express a disconnect when pondering smartphones – still preferring the personal touch when dealing with such an important event in their lives.
“Most people want sympathy from their agent,” says Horn. “Most people are comfortable reporting through the old reporting channels, but we do have the ability to do your shop management tasks from the phone.”
“We have noticed that as smartphones take hold in the consumer market, our customers in the auto physical damage industry are increasingly asking for mobile offerings that allow them to have access to vital information on-the-go,” adds product management director Brian Elmi. “In short, we are witnessing the ‘consumerization’ of APD (auto physical damage) and there is no doubt that with the advantages offered by mobile devices more businesses will continue to gravitate towards this trend.”
Elmi says that “as with any new technology, there are roadblocks in adoption. Within our industry we see two major roadblocks: The willingness of companies to invest in tablet/mobile devices for their workforce, and concerns around data security as mobile devices empower ready access to information anywhere and at any time.”
He tells ABRN that “we are constantly enhancing our mobile solutions by offering workflows that lend themselves to a mobile environment. Mitchell’s mobile offerings today range from a mobile solution for field appraisers who need to view their dispatch assignments and find the most optimal route, to glass shops that want to look up NAGS (National Auto Glass Specifications) parts and pricing information on-the-go, to repair facilities that want to optimize their shop workflow by capturing photos, managing tasks and updating the repair status at the vehicle.”
In July the company rolled out a new RepairCenter Digital Marketing module that includes social media listening and analytics, voice and digital CSI surveys, automated email reminders, referral rewards, email campaign templates, a smartphone app with mobile reminders, an appointment scheduler, and a database and metrics dashboard.
“With the Digital Marketing module, Mitchell has combined essential marketing tools into one simple platform to help repair shops expand their businesses through tactics such as social media monitoring, online listings and targeted email campaigns,” says Jesse Herrera, executive vice president and general manager.
“Whether profits come from DRP (direct repair program) repairs exclusively or are more diversified, reputation is king in today’s referral-driven business environment,” he points out.
“Oftentimes, a shop’s marketing efforts are built in-house and implemented using the company’s time and resources,” says Anlin Sethi, senior manager of product management. “Unfortunately, this means sacrificing technicians’ time on repairs to support customer growth. With Mitchell’s technology, shop owners no longer have to compromise repair time and can still improve their marketing presence, while ensuring that auto owners get their vehicles back in a timely fashion.”
Wireless access
Previously available only for iPads, in January ALLDATA launched an Android version of its Mobile app for repairers. “Both Android and iOS are extremely popular, and users of both can now take advantage of wireless access to factory repair information,” reports President Jeff Lagges. “A tech can take his or her tablet out into the parking lot, on test drives, into the bay and even under the car. This truly is an industry-changing product.”
The technology is “destined to become a must-have tool for repair shops,” according to Lagges. “Efficiency is everything when it comes to remaining competitive, and our mobile app is all about efficiency.”
Market dynamics
Utilizing Android, Audatex’s AutoWatch gives body shops a method for enhancing customer service and improving communications by allowing vehicle owners to view the progress of their repairs online.
“With mobile access becoming increasingly important in today’s connected world, the new app empowers collision repair shops with an easy way to update and access AutoWatch data from anywhere at any time, and supports our mission to connect and support repairers, vehicle owners and insurers through technology,” says Patrick Schmidlin, vice president of product management.
Product director Gordon Henderson says “interest in the app is strong and growing, which clearly demonstrates that shops are eager to use their mobile phones as a means to provide customers with instant online repair updates.” He goes on to note that “we anticipate further growth ahead as vehicle owners increasingly rely upon their smartphones and the Internet to stay on top of the issues impacting their daily lives.”
“We like having the added flexibility to update AutoWatch from our mobile phones,” says Mark Veldhuizen, general manager of Marv’s Body Shop in Sioux Falls, S.D. “Before we began using the app, we would issue repair updates only once daily, at the end of the work day. Now, with easier remote access to AutoWatch, we are adding photos and other updates at least twice a day, which means we’re communicating with our customers more frequently, and that makes for better customer service.”
Audatex’s AudaExplore GoTime package was introduced last October. “There’s a perfect storm of change hitting the market – from a new generation of vehicle owners, to the pervasiveness of mobile devices to newly available self-service offerings that enable new ways of engaging vehicle owners never before possible until now,” says Neal Lowell, AudaExplore’s vice president of product management and innovation. “Our GoTime line of mobile solutions empowers insurers and repair facilities to address these market dynamics head on, with features that take business efficiencies and the vehicle owner experience to the next level.”
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