Auto Claims Embrace Artificial Intelligence Transformation: CCC Eyes Stunning Digitized Parts Ordering
CCC Intelligent Solutions delivered second-quarter results that show increasing traction in using advanced technologies — (artificial intelligence) included — to improve auto claims estimates, resolution, and payout workflows.
The business reported $192.8 million in revenues, a 10% increase from the previous year.
During a conference call with analysts, CEO Githesh Ramamurthy stated that “the auto insurance economy is being impacted by multiple headwinds, including staffing shortages, inflation, supply chain issues, increasing vehicle complexity, and rising consumer expectations.”
He said auto claim counts (artificial intelligence) recovered after the pandemic and are less than 10% below pre-pandemic levels. Along the way, the total number of days for claims has surpassed 2 billion, and over the previous few years, repair prices have increased by double digits.
He said the company’s claims estimate software, CCC Estimate STP, has delivered estimates over digital channels in only a few seconds or minutes, cutting down on cycle times that ordinarily take hours or days.
According to the CEO, consumers evaluate around 30% of claims through the mobile phone service channel, but 45% are examined in repair facilities, and about 25% are examined by insurance employees on the go.
STP still accounts for only roughly 1% of the entire volume of the company, management stated on the call.
He said that Artificial intelligence had increased productivity, assisting insurers in “more efficiently and effectively identifying risk” and simplifying the claims procedure.
The business currently possesses historical accident data totaling one trillion dollars. In its earnings materials, CCC said it had added nearly 1,000 repair facilities this year.
The overall number of CCC’s clients has surpassed 35,000.
After digging deeper into the numbers, management discovered that parts, which comprise approximately 5% of revenue but are expanding faster than the company, present a sizable opportunity.
“Only about 15% of industry parts volume is ordered electronically through the CCC network. We believe that CCC has the opportunity to increase that percentage over time because our electronic parts ordering solutions help improve operational efficiency for automotive OEMs [original equipment manufacturer]” and other parties involved, according to Ramamurthy.
Traction For Artificial Intelligence Cross-Selling
On the call, CFO Brian Herb stated that cross-selling, upselling, and solution adoption within CCC’s clientele, particularly the upselling of repair shop packages, were answerable for seven percentage points of the revenue gain in Q2.
According to comments, artificial intelligence cross-selling opportunities will eventually account for 80% of corporate revenue growth (organic growth is predicted to be in the 7–10% range).
When asked about industry trends during the call, Ramamurthy responded, “With the visibility of the data that comes through the platform … one thing we are seeing, I would say at a macro level, is that when we talk to our clients across the entire economy, whether it is OEMs, car companies, parts providers, insurers, repairers, there’s a general sense of leaning in to use technology more aggressively than they were in the past to improve efficiency.”
