Important Client Update: COVID-19

Accident Advisor

For the minutes after an accident, there’s CCC Accident Advisor.

Today’s connected vehicles are advancing the safety of our roadways and the points of connection with consumers. Relationships with insurance companies no longer start at quote or claim. Relationships with automotive manufacturers no longer end at point of purchase. Today, these relationships extend to the point of impact.

 

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HOW IT WORKS

Connected vehicles and CCC X connect insurers and auto manufacturers to drivers at the point of impact so they can provide guidance and comfort.

 

Collision
Raw, real-time OEM telematics data flows to the CCC X data exchange where it is converted to actionable insights. Having detected a collision and its approximate severity, it allows clients to support the driver as appropriate. For less severe incidents, clients can immediately text the driver a link to access the Accident Advisor app.

Capture
The Accident Advisor app leads the driver through post-collision steps and provides guidance on capturing post-incident crash facts and photos, alerting insurance, and finding a repair facility.

Claims
Drivers can easily submit crash documentation to participating insurers without exiting the Accident Advisor app. This injects unprecedented immediacy into the beginning of the claims resolution process.

CUSTOMER EXPERIENCE POWERED BY INSIGHTS.

CCC Accident Advisor powers this point of connection. Built on the hyperscale CCC X data exchange with the capacity to capture every turn, every brake, every sensor collected by a connected vehicle. With connections so advanced, telematics data can detect an incident and triage the severity instantly.

CCC Information Services Reports Accelerated Growth of Photo Estimate and AI-Supported Claims in Response to COVID-19

Insurance carriers show strong growth and sustained use of photos as a method of inspection in response to COVID-19. CCC Information Services Inc. (CCC) reports today that photo estimates and AI-supported claims have expanded at a record pace exceeding double-digit growth since the beginning of the year. The rapid adoption of digital technology is in direct response to social distancing and work-from-home protocols initiated to combat COVID-19. Industry Adoption of Photo Estimates Increase CCC industry data shows that the insurance industry recently surpassed 3 million estimates initiated leveraging photo technology, since tracking began in 2018. The company also reports that the percentage of claims processed through CCC® Quick Estimate, the company’s mobile photo estimating solution, has more than doubled from January to April of 2020 as carriers are accelerating use and adoption of digital tools in response to COVID-19. “Industry use of photos for method of inspection has been growing and insurers are seeing benefit to both cycle time and customer satisfaction,” said Susanna Gotsch, director, industry analyst, CCC. “The recent spike is likely indicative of a new normal as we’re seeing greater use of digital by carriers that have been in market and new insurers coming online with digital solutions.” AI-Supported Claims Increase CCC also reports a similar trend in estimates written using CCC® Smart Estimate, the world’s first AI-guided estimating solution. Smart Estimate applies AI and estimating logic to photos captured with Quick Estimate. Added Jason Verlen, senior vice president, product management, CCC: “Use of AI-supported claims has accelerated from steady adoption by industry leaders to a massive increase in use and adoption by the industry at large. Our data, and the conversations we are having with customers, strongly suggests that this point in time will mark a digital revolution in claims. We’re seeing every industry embracing new technologies, rethinking how they work, and focusing on personalizing experiences for their customers. The insurance industry is no different.” CCC offers the industry’s only end-to-end digital auto insurance experience, from telematics data used by insurers for policy quotes and premium discounts, to incident management, where telematics can be used to alert an insurance carrier after a crash event, to photo- and AI-powered applications for repair, total loss, and casualty claims management. Using mobile, AI, and IoT together with its industry platform, CCC connects the broader auto insurance ecosystem supporting more than $100 billion in transactions each year. Learn more about CCC’s digital claims solutions and insurer adoption of digital tools.

Auto Financing & COVID-19: How Coronavirus Is Impacting Automotive Lenders

With a majority of the country under orders to stay home due to COVID-19, there has already been a dramatic drop in auto sales, miles driven, and accident frequency. As many states further extend shelter-at-home guidelines through the end of May or longer, the pandemic is likely to have a long-lasting industry impact. For automotive lenders, the implications are already becoming clear. Call duration is up 50% as worried consumers reach out about loans, overwhelming call centers and limiting lender availability. Meanwhile, total loss resolution remains a time-consuming process, further stretching resources as lenders adapt to a fully remote working environment. How did we get here? Before the COVID-19 pandemic, auto loans were increasing in number and length. Consumers were purchasing cars with up to seven-year loans, extending beyond the typical three-year vehicle maintenance warranty. In fact, according to Experian, the average loan term length in the U.S. is just over 69 months, and 85% of new vehicles are purchased with financing. That means a large share of vehicles up to six or seven years of age likely have an outstanding loan balance. With more than 40 million Americans filing for unemployment since mid-March, consumers may find themselves defaulting on loans or refinancing as they look to stretch limited income across competing priorities. Negative equity already hit record highs in April, making up 44% of new vehicle sales — an average of $5,571. These numbers are likely to climb even higher as unemployment rates increase and markets struggle to regain traction. Many could be facing prolonged unemployment while the economy reopens and adapts to the “new normal” — whatever that may be. And with impending bills to pay and families to support, more and more consumers will turn to lenders for loan help and guidance. Total Loss Rising With fewer cars on the road and, subsequently, fewer accidents, it’s no surprise that claim counts are down. But even with lower overall claim volume, the percentage of total loss claims continues to increase. [caption id="attachment_99466" align="alignnone" width="500"] Comparing weekly data from March-April 2018-2020, the percent of non-comprehensive claims flagged total loss has continued to climb – CCC Information Services Inc.[/caption] Older vehicles still make up the majority of total loss claims, but with rising repair costs the last several years, total loss frequency is increasing across all vehicle ages. Perhaps most concerning is the increase in total losses among newer vehicles, where many customers still have outstanding auto loans. For example, 7.8% of current model year vehicles in Week 13 of 2020 were flagged total losses versus 5.6% the same week in 2018. [caption id="attachment_99467" align="alignnone" width="500"] Comparing the percentage of vehicles flagged total loss from March-April 2018-2020 shows an increase in total losses among newer vehicles - CCC Information Services Inc.[/caption] With a looming decline in new vehicle sales as well as a potential drop in used vehicle and vehicle retention values, total loss frequency is likely to rise further, just as it did during the Great Recession. What does this mean for lenders? Outstanding loans and negative equity could leave even more consumers underwater as unemployment rises. And while consumers look for ways to redistribute cashflow, lenders will continue to see an increase in call times related to late payments and loan refinancing. With increased call duration and overwhelmed call centers, lenders have limited time and resources to devote to total loss resolution. Carriers seeking lien release information are kept on hold longer as lenders prioritize consumer calls. While carriers wait on hold, total loss resolution time extends for a process that already takes an average of 73.7 days from loss to salvage — 62 of which take place post-valuation. The vehicle continues to depreciate while consumers grow more frustrated. Even after the shelter-at-home order has lifted, lenders should evaluate if their processes are built for a continued rise in total loss claims — particularly for new and young vehicles — as vehicle prices continue to soar. In part two of this blog series, we’ll explore how digitizing total loss processes can help lenders save time and keep information flowing. And with the sudden reliance on remote work, now is the perfect time to implement digital solutions. Stay tuned for more in 4 Easy Ways for Auto Lenders to Improve Total Loss Efficiency. Or visit our Total Loss Care for Lenders page to learn how you can digitize and streamline your total loss processes.

CCC Trends with Susanna Gotsch – June 2020

Historically, Memorial Day weekend losses have accounted for "approximately 30 percent of non-comprehensive losses for the full month of May." In the midst of the COVID-19 crisis, Memorial Day weekend auto trends will likely be very different from prior years. In this month's edition of CCC Trends, Susanna Gotsch predicts what Memorial Day weekend 2020 will look like for auto claims frequency, severity and vehicle miles driven. To check out the rest of the #CCCTrends series, visit CCC’s YouTube channel. Download the full pdf here.

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See firsthand how CCC can help you help your customers through the confusion and uncertainty that follows millions of car accidents every year.

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