Report: how 5G technology will impact insurers and collision repair industries
Published: March 21, 2019
Updated: April 1, 2019
Author: Luke Jones
CATEGORY: Industry Trends
5G technology is slowly being embraced and transforming the connectivity capabilities of organizations and consumers. Can superfast mobile internet delivered through 5G have an impact on auto insurance and the collision repair market?
5G will allow the Internet of Things (IoT) to move beyond its nascent state, with more devices becoming inter-connected with high-speed tethering. Property and casualty insurers and collision repair industries can ride the wave of innovation, according to Mitchell International in a recent report.
5G promises data speeds up to 600 times faster than current 4G (LTE). That means the fifth generation of wireless can deliver information to smartphones and other devices at significantly faster speeds. Because of this raw connectivity power, 5G will also deliver uniform fast performance across multiple devices simultaneously.
“5G has significant implications for the entire auto physical damage ecosystem,” wrote Alex Sun, president and CEO of Mitchell International, in 5G: What High-Flying Predictions Mean for the Property & Casualty and Collision Repair Industries. “As the number of sensors in vehicles increases, the data they produce may collect details of collision damage, which in aggregate can help manufacturers improve vehicle designs, carriers price coverage appropriately and collision repair facilities accomplish proper and safe repairs.”
Sun adds an environment of connected vehicles and smart cities may eventually mean added road safety. However, the increased engineering complexity may make auto repairs more difficult. Jack Roznit, Mitchell’s auto physical damage business report participant says complex autonomous systems and connected technology will put a burden on existing repair facilities and may even lead to new tech-focused repair shops opening.
“Based on the expected advances 5G will foster and the current speed of innovation, I envision the way we live today will someday seem quaint, with today’s phones, cars and medical equipment appearing to our future selves as antiquated as a rotary phone,” Sun added. “Maybe not tomorrow, but possibly faster than we might expect.”