In this special edition of CCC Trends, we’re discussing 5 key takeaways from Crash Course 2023, our annual research report, which covers the latest P&C insurance and collision repair industry insights and trends.
This year’s Crash Course is all about EXPERIENCE – and more specifically, the important role technology plays in creating truly customer-centric experiences through improved communication and more intelligent use of data and analytics. With that, here are the five key takeaways from this year's Crash Course report:
Insurance carriers are rapidly adopting advanced technology like AI and machine learning to improve turnaround time for claims. Today, 27% of all repairable vehicle claims are initiated via photos, and over 100 of the more than 150 carriers that allow policyholders to send photos of vehicle damage are using AI to inform decisions throughout the claim process, including next steps for getting the vehicle repaired. AI is advancing quickly, and those advancements are creating step change opportunities for our industry. Carriers that apply mobile, AI, and telematics technologies can cut the claims cycle time by as much as a third. It’s no wonder that 84% of policyholders prefer a digitized claims process!
Cars today are like smart phones on wheels with more than 1,400 semiconductors that control everything from the airbags to the engine… and that’s just the average vehicle. More complex vehicle parts, which are especially prevalent now with more ADAS-equipped vehicles and the uptick in EV sales, are harder and costlier to replace, and there aren’t enough repair technicians, let alone enough skilled in how to complete those more complex repairs. So, how can insurance companies keep policyholders happy as repair costs and cycle times continue to climb? One simple answer is technology. An AI-enabled customer experience, for example, helps carriers and repair facilities communicate more transparently and manage policyholder expectations through frequent, customized, omnichannel updates and alerts.
As insurance rates go up, more consumers are expressing interest in user-based insurance policies that rely on telematics data analysis. And because most new vehicles now come standard-equipped with ADAS, autonomous features, and connected car technology, crash data has become a lot easier to capture. Participation in UBI programs has doubled since 2016, with 16% of auto insurance customers now sharing vehicle data with their carrier to demonstrate safer driving for lower premiums. Additionally, a growing number of telematics solutions can detect accidents and provide real-time data to initiate claims faster, reducing cycle times and providing a concierge-like customer experience.
Americans are driving heavier and more powerful vehicles, which means collisions are now more severe and potentially lethal. With rapid advancements in physics-sensitive AI, impact severity data – also known as Delta-v - can be generated directly from photos uploaded to the insurer, as opposed to waiting for an estimate to be written. This helps insurance carriers triage casualty workflows more efficiently, reducing processing time and creating a more seamless experience for policyholders who are especially vulnerable after a traumatic event.
The collision repair and insurance industries are experiencing notable labor shortages, and the nature of the type of labor required to successfully repair a vehicle is changing rapidly. Manual estimates and appraisals are taking even longer, vehicle repair backlogs are reaching an all-time high, and shop productivity has fallen below pre-pandemic levels… all of which are prolonging claim cycle times and driving down customer satisfaction. Now, more than ever, it’s essential for the automotive, P&C insurance, and collision repair industries to stay current on new technologies, tooling, and training to bridge the gap and provide better customer experiences as vehicle complexity and capacity constraints continue to grow.
Transparency, ease of use, and personalized experiences have become essential to today’s playing field. Now is the time for companies to evaluate their platforms – and how they connect to others in the vast P&C insurance ecosystem – to ensure they are primed to innovate quickly and put customer experience at the forefront.
Ready to take a deeper dive into the data behind these takeaways and see what’s next for the P&C industry?
