A motor insurance claim process could be triggered automatically for drivers of connected cars as the Internet of Things (IoT) transforms communication and service, an IAG expert says.

IAG EGM Partners and Platforms Luke Boyle says in future, connected vehicles are likely to proactively kickstart a claim in the event of an accident, or even a scrape the owner was not aware of when their car was parked.

"We need to maintain a focus on both ends of the value chain because there's so much improvement to customer experience that can that can come of this,” Mr Boyle said during an embedded insurance webinar hosted by insurtech Kanopi and attended by insuranceNEWS.com.au.

“In relation to claims and servicing of it, you've got examples like connected vehicles where a customer could be proactively serviced in the event of a claim,” he said.

"Your vehicle gets nudged in the car park – the customer might not even know about it but a connected vehicle could say ‘We notice there's been an incident on this vehicle’, and trigger a connection back with the insurer and proactively initiate the first notice of loss, the fulfillment of the claim on behalf of a customer,” Mr Boyle said.

By purchasing their insurance with the vehicle, customers will find policies easier to acquire as “part of the vehicle proposition”, and will also find the claims process a lot less “friction full,” he says, while insurers can take advantage of data and using the insights of the connected car, he says.

"Suddenly you are back in the realms of delighting them,” he said.

“They might not even know but you could have another connected vehicle on its way and the other one is going to drive itself off to a panel shop to be repaired. Before you know it, we've solved the problem that you didn't even know you had before we told you.

“That’s really a lot of the powerful part of this stuff,” Mr Boyle said.