CCC on Thursday announced the amount of claims handled inside a manner incorporating deep machine learning grew a lot more than 50 percent in 2021.
It said more than five million claims received “a CCC deep learning AI solution.” And the quantity of claims handled using more than one artificial intelligence option “has a lot more than doubled” from 2021, based on CCC.
“The growth we're seeing in AI adoption is associated with our proven ability to deliver actionable insights with advancing precision,” CCC technology Senior V . p . John Goodson said in a statement. “The CCC Cloud platform is made for speed and scale, and today processes 2.7 billion transactions each day. We are powering AI innovations at scale and are proud to assist each client use AI to provide a tailored experience for their customers.”
CCC said the number of insurers using a minumum of one of its artificial intelligence option grew a lot more than 30 % in 2021.
“Innovation has driven AI into multiple phases of the claims process, now includes estimating, audit, total loss handling, AI-based data validation, and more as the industry progresses towards its vision of straight-through processing,” CCC wrote inside a news release.
We asked when the AI within the announcement referred to classical technology like estimate review or CCC Valuation or newer systems like CCC Smart Estimate. CCC technology Senior V . p . John Goodson said the news release was “focused on the application and customer adoption of deep learning AI, that exist in solutions spanning key decisions across the claim lifecycle, including Smart Estimate, Smart Total Loss, Heat Maps, and Smart Audit.”
CCC also offers artificial intelligence for auto casualty claims, but Goodson said the gains in AI usage CCC described Wednesday were predominantly auto physical damage-related.
“The exponential development in customer adoption of deep learning AI is centered on APD claims,” he said in a statement.
CCC said it had tailored more than 300 “active AI models” to satisfy carriers’ specific demands.
It’s been suggested auto body shops can use AI photo estimates to flag total losses immediately, assuming insurers with their own incentive to do this don’t beat these to the punch. CCC referenced this type of use case in the news release Thursday.
“Artificial intelligence is contributing to safer, more accurate, and accelerated decisions across the APD claims lifecycle and over the P&C insurance ecosystem,” CCC markets and consumer success Executive Vice President Barrett Callaghan said inside a statement. “Policyholders are taking advantage of expedited processing. Lienholders is now able to notified of a total loss days earlier. And AI helps to make sure repair facilities big and small get a greater number of repairable vehicles, eliminating noise and increasing productivity. The benefits of increased AI adoption span the network.”
The data CCC released is interesting in light of another industry expert’s recent automation prediction.
LexisNexis Risk Solutions claims Vice President Bill Brower recently projected in PropertyCasualty360 and Claims Magazine the insurance coverage industry would handle nearly all auto physical damage claims virtually by 2025 – and completely automate 50 percent of noninjury ones. CCC’s reference to a “straight-through processing” goal appears to also suggest this latter trend.
The interesting question will be if the process could be automated past the initial estimate or total loss decision.
Collison repair guidelines call for a 100 % teardown, scanning, bench measurements and OEM procedure research to produce the real, complete estimate/blueprint. This battery of examinations and research isn’t possible during a curbside or photo-based estimate, regardless of if a human or AI is looking over the vehicle.
Thus, any nearly all initial estimates are going to be incomplete — and statistically, they are today.
CCC's 2021 “Crash Course” found a supplement rate of 82.3 % among vehicles fixed by DRP shops during the year ending Sept. 30, 2021. The average supplement arrived at 14.5 percent from the $3,251 average total repair cost. That’s an additional $471.40 that the insurer will be asked to reimburse sooner or later.
So at some point — apparently, even on lower-dollar claims — someone aside from the AI is going to be writing an estimate and submitting it to the insurer, who’ll either have to bring in a human or another AI to evaluate it.
Of course, this may 't be so desperately. We don’t have an auto physical damage stat, however the Insurance Information Institute’s projected overall insurance fraud rates are only 10 percent. The Insurance Research Council puts the car bodily injury fraud rate at 13-17 percent.
Thus, some insurance company could deploy a second AI not doing anything but blindly approving 50 % of supplements randomly. They could be truly automated on Brower’s 50 % of claims yet in the law of averages be confident they’re mostly paying valid expenses. And that’s without deploying measures like AI fraud detection software to really refine results.
