During the height of COVID-19 restrictions, the auto insurance landscape shifted overnight. Empty roads led to an extraordinary drop in accidents and in some countries, claims collapsed by as much as 80 percent. For insurers, it was an unexpected period of strong profitability, one that may not be repeated again.
But that lull is fading quickly. As daily life resumes, collision and repair claims continue to climb. They remain slightly below pre-pandemic levels for now, but industry leaders understand this is temporary. The surge is coming.
This moment represents a rare chance: insurers can modernize their claims operations before the wave fully arrives.
A Changed Market with New Expectations
Europe’s economy is healing, yet the insurance sector isn’t stepping back into the same environment it left behind. Three shifts in particular are reshaping what success will look like.
1.Revenue pressure is still real
Driving patterns have changed. Many people continue to work remotely, and they expect their premiums to reflect reduced mileage. The idea of only paying for what you use has grown stronger, especially after some insurers issued refunds during the pandemic’s quietest months.
Commercial auto coverage faces an even slower road to recovery. Industries like aviation, tourism, and small business transportation are still stabilizing. Growth will require sharper pricing discipline and more creative product design.
2.Customers want digital service that actually works
The pandemic made online self-service normal and insurance is no exception. Customers now expect:
Immediate access to claim filing
Real-time progress updates
Frictionless transition from digital tools to human support
Yet when faced with confusing forms or disconnected portals, many still reach for the phone. Convenience is not optional anymore. Insurers who fail to deliver a smooth digital experience risk watching their customers leave.
3.Repair costs continue to rise
Workshops and supply chains are still recoveringRepair costs have increased due to a lack of workers and the complexity of modern cars.
There is no indication that claims inflation will decrease, and it is now several points higher than usual.
In response, carriers are doing the following
strengthening alliances with recommended repairers
Tightening components and monitoring labor expenses
Enhancing data to monitor and direct repair results
Profitability tomorrow will be shaped by cost control now.
The Upcoming Phase of Claims Management
Prior to COVID-19, back-office efficiency and price increases accounted for the majority of performance gains. Now, the claims procedure itself presents the biggest chance.
Prominent insurers are already shifting their focus to
sophisticated technologies for automation and decision-making
Quicker payments with less paperwork
When complete inspections are not required, digital photo evaluations
Technologies for prevention that assist drivers in completely avoiding accidents
The objective is straightforward: fewer surprises, less delays, and a fair rather than annoying customer experience.
This is a mentality change rather than only an IT improvement. Claims organizations that keep in mind that they are helping people in times of hardship are the most successful.
The Clock Is Ticking
Motor claims are climbing back, and once travel patterns stabilize, volumes are likely to match or even exceed pre-pandemic levels. Insurers who treat this recovery period as downtime risk falling behind competitors who are already rebuilding their operating foundations.
The real winners will be the organizations that act now by:
Upskilling their claims teams
Replacing outdated systems
Reimagining every customer touchpoint
Putting data to work to eliminate waste and reduce leakage
Claims excellence isn’t just a performance metric anymore. It could become the deciding factor in market leadership.
Final Thought
Europe’s roads are growing louder each day. The rebound is already on its way. Insurers have a small window to prepare and once it closes, catching up will be far more difficult.
Motor claims are returning. The question that remains is whether European insurers are prepared for what comes next.
