Challenges Faced by the Albanian Automotive and Auto-Insurance Industries Amidst Blockchain and Artificial Intelligence Disruption
Ezmolda Barolli, Muhamet Zeneli · International Scientific Conference EMAN. Economics & Management: How to Cope With Disrupted Times · 2024
This paper aims to explore the automotive and auto insurance industries in Albania, pointing out the presence of such challenges as system interoperability, vehicle repair traceability, and risk analysis in insurance claim processing. Identifying the fragmented characteristics of these sectors is made possible through research techniques, including interviews with stakeholders and analysis of available open data. It also examines how various systems used by stakeholders are disconnected, vehicles’ service history associated with VINs being rare, and risks from odometer fraud and rolling wrecks (re-entering damaged cars into the market). This paper further explores the auto insurance landscape by highlighting the non-existence of a bonus-malus system despite legal provisions, lack of data operability among insurers, and traditional labor-intensive claims settlement methods that intensify fraud risks. The paper discusses how blockchain and AI technologies can address these issues, drawing insights from previous research on their application in this sector.