Rising Fuel Costs Are Changing Claims Handling — Here’s What Insurers Can Do About It

Fuel prices across Australia are climbing, and while most industries are feeling the pressure, insurers and their supply chains are facing a particularly unique challenge.

Every claim that requires a site visit now incurs higher operational costs—not just in fuel but also in time, resources, and delays. What was once standard practice is quickly becoming an expensive inefficiency.

As costs rise, so does the need to rethink how claims are assessed.

Let’s Break This Down

On average, insurance professionals travel 100km per day, and with recent spikes in fuel prices, fuel costs add up to thousands of dollars per person per year.

With an average fuel price of $3.14 per litre for diesel, that is costing an average of $1,360 per month. 

So, for a team of 10 vehicles, that is costing your business $12,606.67 per month and $163,280 per year on fuel.

That’s an additional $67,600 your business is now spending on fuel every year compared to 2025.

That’s 10's of thousands of dollars that would be saved through digital assessment, let alone the time saved on the road that could be spent progressing claims.

The Hidden Cost of a Site Visit

Let’s be clear—fuel is only part of the story. At first glance, a site visit may seem like a necessary step in the claims process. But when broken down, the true cost is far greater than the price of petrol alone.

A single site visit carries layers of cost:

• Travel time that slows down claim progression

• Resource allocation that could be better used elsewhere

• Scheduling friction that impacts customer experience

• Operational overhead that scales with every additional claim

Individually, it’s manageable. At scale, it’s expensive.

And right now, scale is exactly where the insurance industry is feeling it.

It's time to ask the critical question:
Does every claim require someone on-site? The answer, increasingly, is no.

A Shift Toward Smarter Triage

Advancements in video streaming and virtual inspection tools have made it possible to assess claims remotely, all without compromising accuracy or customer experience. This shift toward virtual triaging is helping insurers streamline operations while maintaining high standards of service.

Rather than defaulting to a site visit, claims can now be assessed first, with in-person inspections reserved only for cases where they’re truly needed.

Introducing a More Efficient Approach

Virtual triaging tools, like Virtual Assist, are enabling insurers and service providers to make faster, more informed decisions - without the added cost of travel.

By leveraging real-time video, guided assessments, and digital workflows, teams can:

• Instantly evaluate damage

• Determine the severity of a claim

• Decide whether a site visit is necessary or;

• Progress the claim from a virtual inspection

This approach not only reduces fuel and travel costs but also accelerates the claims process, leading to better KPIs and customer experiences.

Virtual Assist - The smarter way to approach claims

Virtual Assist offers a solution that revolutionises the way companies assess on-site faults or claims.

With its secure, high-definition video streaming and image capture capabilities, teams can now accurately assess the situation in real-time without the need for time-consuming, resource-intensive site visits.

Benefits of Virtual Assist:

• Better triage incidents more effectively

• Reduce travel time and costs

• Reduce project life cycle by up to 80%

• Verify the severity of the work required

• Optimise the type and level of trade dispatch

• Improve resource distribution in major events

• Improve your customer experience

• Mitigate risk and increase site safety

• Improve ESG carbon emission targets
  

What Happens When You Remove Unnecessary Travel?

Everything gets better.

• Costs drop with fewer trips, less fuel, and lower overhead

• Speed increases with no waiting on availability or travel time

• Teams work smarter.  Resources go where they’re needed most

Customers get answers faster, and that matters.

Customers benefit from quicker outcomes, while teams can focus their time and expertise where it matters most. It's a win-win. 


Future-Proofing Claims Handling

Rising fuel prices are unlikely to be a short-term issue. As external costs continue to fluctuate, insurers need flexible, scalable solutions that allow them to adapt.

Virtual triaging isn’t just a response to current conditions; it’s a smarter, more sustainable way to manage claims moving forward.

By reducing reliance on travel and embracing digital-first assessments, insurers can build more resilient, efficient operations.


Rethinking What’s Necessary

The traditional claims model has long relied on in-person assessments as a default. But in today’s cost environment, that approach is being challenged.

Not every claim needs a car trip.
Not every decision requires someone on-site.

Sometimes, the smartest move is simply to assess first.

Closing Thought

Fuel costs may be outside of your control, but how you respond to them isn’t.

With the right tools in place, insurers and their supply chains can reduce unnecessary travel, lower costs, and deliver faster, better outcomes for their customers.

And that’s where the real opportunity lies.