During the recent CCC Intelligent Solutions Q2 earnings report, Chairman and CEO Githesh Ramamurthy announced that the cumulative annual cycle time for automotive claims in the U.S. increased to more than 2 billion days in 2022, a 1 billion increase from 2021.
“We estimate that as a result of the continued macro pressures facing our customers, the cumulative annual cycle time for automotive claims in the U.S. increased to more than 2 billion days in 2022,” said Ramamurthy. “This staggering figure underscores the importance of delivering effective and integrated state-of-the-art capabilities to help our clients in the P&C insurance economy address operational efficiency. Our solutions and use of AI are helping to do just that by helping customers to reduce the cycle time, administrative cost and environmental impact of the claims process.”
CCC looked at total U.S. auto claims for 2022 to calculate this number, and the average cycle time for repairable claims, total loss claims and first party casualty claims.
The main pain points that directly impacted cycle time throughout the year include:
- An increase in overall claim volume — now trending very close to pre-pandemic levels
- A year-over-year doubling in the time it takes to repair a vehicle
- First-party casualty claims increased year-over-year by more than 30%
As the cumulative cycle time increases, CCC is on the frontline leveraging their suite of AI powered solutions to create a connected ecosystem within the P&C insurance industry of repair facilities, lenders and part suppliers to help streamline processes and reduce the overall length of the claims process.
Q2 highlights for CCC included:
- A top-20 auto insurer and long-time customer of CCC’s Casualty solutions added CCC’s full suite of Automobile Physical Damage (APD) solutions in the second quarter of 2023, including CCC Estimate-STP. The client will be transitioning services from multiple vendors onto CCC’s platform and reflects the significant opportunity and numerous ways available to CCC to expand its solutions with the U.S.’s largest insurers.
- CCC is a leader in the casualty solutions market and recently rolled out a new computer vision AI technology for casualty claims that can predict potential physical injuries to the occupants of a vehicle involved in an accident based on photos of the damaged vehicles. In the second quarter of 2023, CCC added and expanded casualty relationships with new and existing customers.
- CCC continued to grow the breadth and depth of its network during the second quarter of 2023 by expanding the participation of two leading OEMs and signing a multi-year extension with one of the leading aftermarket parts suppliers. In addition, CCC has added nearly 1,000 repair facilities year to date. CCC’s total customer count now exceeds 35,000 and includes over 29,000 repair facilities, over 4,500 parts suppliers, more than 300 insurers and 13 of the top 15 automotive OEMs. By connecting these companies and digitizing processes across the ecosystem, CCC’s platform increases their ability to be productive, reduce leakage and improve communication throughout the P&C insurance economy — which ultimately can result in claims being resolved faster.
For more information on CCC, visit cccis.com.