AI adoption is on the rise for auto claims, CCC report

CCC Intelligent Solutions Inc. published an update to its 2023 AI adoption report that found that the adoption of AI solutions in auto claims processing in 2022 show a 60% increase in comparison to data from 2021. This indicates the third consecutive year of growth for AI usage in auto claims. 

“The industry has achieved more with advanced AI than many thought was possible a few short years ago,” said Jason Verlen, vice president of product marketing at CCC in a statement. “AI is now applied at key stages across the claims process and is capable of auto-generating a complete repair estimate with line level detail in seconds without human intervention.”

According to results from a 2021 survey by CCC, a total of 70% of P&C insurers ranked AI as “extremely important” or “very important” to meeting their organization’s goals, indicating that this increase in AI adoption is likely to continue. Further, a 2022 Gartner report, “What to Do With All That Data: The Top Areas Where AI Is Applied in Insurance,” according to the CCC press release, indicates that though only 43% of insurers have adopted AI in some capacity, 92% of executives respond they have or will integrate AI in the future.

Findings from the CCC’s 2023 report also show that the number of AI solutions used per claim increased, with the number of claims utilizing four or more AI solutions being doubled year-over-year. The data shows that over 14 million unique claims were processed in 2022 using a CCC AI-powered solution –  a number that has nearly tripled since the start of the pandemic. 

Not only does AI reduce claims processing times, but the tech can also be used in ways to manage costs, improve customer experiences, combat fraud and inform decisions. CCC’s AI solutions for auto include models for digitizing casualty, fraud detection and auto estimates, and includes solutions such as language recognition and computer vision technology.

Over 100 of the 150 insurance carriers that allow customers to send photos of damages for auto claims are also using AI tech to drive decision-making throughout the claims management process, showing that “28% of repairable claims today are now being initiated via photos,” according to an analysis of the 2023 report. A study commissioned by CCC and conducted in 2020 finds that 80% of its policyholder respondents say they prefer a digitalized claims process as it is “user-friendly and can cut the claims cycle time by as much as a third, when mobile, AI and telematics are applied,” as stated in the 2023 report analysis.

“This progress is compelling, but it’s not mission accomplished. Market dynamics are necessitating more. While some macro trends, including supply chain issues are likely to subside with time, other factors, including labor shortages and increasing vehicle complexity, will require more AI and deeper connections across the ecosystem to meet the demands of today’s consumer and enable insurers and repairers to realize better business outcomes,” Verlen added in his statement.