CCC News & Insights

APD and Casualty:A Glimpse into the Claims Ecosystem of the Future

Now more than ever, technological innovation and advancement in the auto insurance industry is accelerated by the challenges of the market. Dual headwinds of increasing accident severity and rising premiums continue to bring the pain to insurers and policyholders. Fortunately, technology is hereto help keep pace.

The CCC vision for the claim ecosystem is one where information flows seamlessly from the entry points of telematics and/or first notice of loss, through AI-enhanced photo evaluation, and on to integrated payments and subrogation, creating an intelligent experience that just works for both the adjuster and the consumer. As we wade deeper into the realization of this vision, the synergy of auto physical damage (APD) and casualty becomes a natural evolution in the process.

Vehicle telematics

Although casualty claims have considerably longer average cycle times compared to auto physical damage, the capture of critical information on the immediate front end of the claim is no less important. The industry is increasingly at a point where we can leverage the same inputs, such as telematics, crash detection, and smartphone-based interfaces to gather this critical information. Once the infrastructure is in place, the opportunities to drive improved efficiency, proactivity, and accuracy are boundless.

For example, vehicle damage photos uploaded from the customer’s smartphone can be used to generate not only anAI-driven estimate, but also to predict impact severity via CCC® Impact Dynamics. This severity snapshot can be combined with medical bill review rules, and as bills are received, payments decisions can be more efficiently deployed.At the same time, exceptions can be easily routed to an adjuster for manual review.

Let's take a third-party example: A policyholder rear-ends another driver at low speed in stop-and go traffic. Photos are uploaded via the insured and 3rd party claimant's smartphones to assess material damage and create a profile of impact severity, which predicts a low-impact event. The third-party claimant claims neck and back injuries and begins to treat them, even though the predicted impact severity is so minor that injury likelihood is low. This claim could be routed to a specialized unit for additional levels of review and/or proactive actions versus passively awaiting buildup of treatment of questionable causation and/or necessity. 

One of the greatest benefits of this synergy between auto physical damage and casualty is that the integration points on the front end of the claim are usually the same, eliminating the need for duplicative IT projects, which can be costly and time consuming. Insurers willing to embrace this evolution stand to gain a critical edge in improved accuracy and efficiency. As technology rapidly evolves to meet today's challenges, we at CCC are excited to continue serving the needs of our customers with an eye toward the future.

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