As the UK’s vehicle parc evolves, insurers and their repair networks are navigating a critical turning point. With rapid advances in electric vehicles, intelligent safety systems, and connected vehicle technologies, the complexity of managing motor claims is increasing in both scope and scale.
Here, we discuss significant vehicle technology trends, their impact on the claims and repair process, and the steps insurers and repairers are taking to meet the challenge.
Increased Repair Capacity and Changing Insurer Strategies
After a period of labour shortages, supply chain disruption and capacity constraints, the repair sector is entering a more stable phase. Repair volumes have softened and capacity has returned, giving insurers more flexibility in how they manage their networks.
According to recent Trend Tracker data, repair volumes are 15% lower than the same period last year. With more capacity available, insurers have more space to focus on longer-term priorities: EV readiness, sustainability, cost control, and customer experience.
Many are using this breathing room to prepare for a more complex vehicle parc, where repair decisions are shaped by emerging factors like ADAS calibration and green parts availability. Navigating this complexity requires closer collaboration between insurers, repairers, and supply chain partners.
The Next Five Years: What’s Coming Down the Road?
The future of claims is being shaped by the vehicles on the road today — and those coming tomorrow. As the parc continues to evolve, the demands placed on insurers and repair networks will only intensify.
EV Growth
In 2024, the UK overtook Germany as Europe’s largest market for electric vehicles. There are now more than 1.3 million fully electric cars on UK roads, representing just under 4% of the total parc — and that figure is rising fast.
This shift brings new challenges in underwriting, parts sourcing, and repair methodology. The arrival of competitively priced EVs, particularly from Chinese manufacturers, could further disrupt the market — introducing unfamiliar models, technologies, and new pressures on repair capability and supply chains.
Insurers will need to develop a clear understanding of how these vehicles impact risk profiles, claims costs, and repair complexity. At the same time, repairers must adopt flexible, model-specific approaches to parts and methods — all while maintaining cost efficiency and turnaround times.
ADAS & Connected Technologies
Advanced Driver Assistance Systems (ADAS) — including radar, lidar, and camera-based technologies — are now common across all vehicle types. These systems significantly increase the technical demands on repairs.
Repair complexity has increased dramatically over the last ten years. Today, a minor front-end collision may require high-voltage EV safety protocols, multi-sensor ADAS recalibrations, and strict adherence to manufacturer-approved methods. The variability in OEM systems and limited access to official repair data for newer models only adds to the challenge.
This is creating an urgent need for broader technical training, specialised tooling, and greater transparency on OEM standards to ensure safe, compliant repairs.
Rising Repair Costs and Economic Write-Offs
As repair complexity grows, so too does the cost of returning vehicles to pre-accident condition. High-value parts, specialist labour, and OEM-specific requirements can quickly push repair costs beyond viable limits.
This is leading to a rise in economic write-offs, even for vehicles with only moderate damage. It’s a trend that challenges traditional claims strategies, with implications for policy pricing, total loss handling, and salvage operations.
Sustainability and the Green Parts Challenge
Sustainability is an increasingly important consideration for insurers — but the shift toward high-tech vehicle components is complicating efforts to reduce waste.
Take a front bumper, for example. In the past, minor scuffs could be easily repaired. Today, the same bumper houses critical ADAS sensors and cameras, making repair far more complex — and in many cases, replacement becomes the only viable option.
In addition, there is limited availability of green and aftermarket parts for new models and EVs. Still, where possible, insurers and repairers are looking to increase the use of recycled, reconditioned, and sustainably sourced parts to support broader ESG goals.
How the Industry is Responding
The sector is already taking proactive steps to meet these challenges — but success depends on deeper collaboration between insurers and repairers, underpinned by shared investment in capability, data, and sustainability.
Insurers are:
Prioritising capability – Building networks around forward-thinking repairers who have invested in EV and ADAS expertise, ensuring they’re ready for the vehicles of the future.
Harnessing smarter data – As bodyshop management systems become more advanced, insurers are using detailed repair data to drive more intelligent, cost-effective decisions.
Championing sustainability – Many have updated their policies to support the use of green parts — and are now going further by rewarding repairers who actively align with their environmental objectives.
Repairers are:
Investing in people and equipment – Leading repairers recognise that a more complex vehicle parc requires new skills. They’re investing in specialist equipment and structured training for EV systems, ADAS calibration, and digital diagnostics.
Collaborating with OEMs – The industry is calling for greater transparency around repair methods, particularly for onboard software and systems. Access to this information is essential to ensure safe, cost-effective repairs.
Embedding sustainability – Repairers are aligning their practices with insurers’ sustainability goals, with a renewed focus on eco-friendly parts sourcing, recycling, and waste reduction.
At the same time, reduced repair volumes and the growing need for costly investment in new methods and equipment are placing disproportionate pressure on individual repairers, contributing to a clear trend towards consolidation across the industry.
Summary
Vehicles are getting smarter, and so is the repair process. As the UK motor repair industry evolves, insurers are adapting their repair strategies to reflect the demands of increasingly complex technologies.
Repairers are responding with targeted investment in equipment, training, and sustainable practices, but this transformation requires time, resources, and funding. Independent repairers, in particular, are feeling the pressure, leasing to consolidation in the market.
There’s also increasing demand for closer collaboration with OEMs and greater transparency around repair methods for new models entering the parc.
At Activate Group, we continue to invest in our people, training, and systems to ensure we can manage even the most complex motor claims. Our state-of-the-art Activate Accident Repair centres are fully equipped with in-house ADAS and EV repair capabilities, and our technicians are trained to BSI standards.
Learn more about Activate Accident Repair, and how our bodyshops could support your existing network here:
