CCC News & Insights

December 20, 2023

The Benefits of Knowing More Sooner: How Insurers Are Streamlining Decisioning with Earlier AI-Powered Data

Successful claims management hinges on understanding and analyzing the fundamental facts of an accident, as quickly as possible. Empowering carriers to "know more sooner" can help them make well-informed claims decisions that optimize business outcomes and enhance the overall experience.

Game-changing photo AI solutions now exist to help carriers gain deeper accident insights from the outset of a claim, paving the way for accelerated settlements, smoother injury claim resolution, and more accurate outcomes.

The Importance of Early Data Analysis

In the world of insurance, timing is everything and earlier data is key to better informing decisions that set the claim on the path of the best next step within an insurer's unique claims process. This proactive approach can optimize and accelerate downstream processing across various claim types.

When it comes to auto property damage claims, for example, access to earlier data can help claims handlers with faster decisioning and even help automate low-touch next steps and escalate more complex cases. For casualty claims, access to earlier data can help inform adjusters on next steps.

According to CCC’s Crash Course 2023, injured parties involved in third party casualty claims from 2019-2022 spent roughly 190 days between their first date of medical service and their last. These lengthy cycles times are a pain point, because the longer a claim stays open, the higher the average settlement amount becomes.

How AI Enables Predictive Insights

AI technology is a powerful solution for all types of claims. It can quickly analyze photos of vehicle damage and generate predictions that help insurers make more informed decisions.

AI can analyze photos of vehicle damage to predict the point of impact or if a vehicle is repairable or a total loss and, according to CCC’s Annual AI Adoption Report, 28% of repairable claims are now being initiated via photos.

AI technology that can populate estimate lines considering parts, labor hours, and more currently exists to help customers navigate the hundreds of decisions required for each estimate written. Predictive insights can also enable insurers to evaluate potential injuries earlier in the claims process, facilitating a more holistic understanding of the claim to better inform next steps.

AI that can be applied to photos of vehicle damage to determine the impact-related change in velocity also exists to help they need to triage auto claims and inform next steps in a series of important decisions. For casualty claims, specifically, this could include identifying injury potential early, early settlement opportunities, and reserve management.

Lengthy cycles times are a pain point, because the longer a claim stays open, the higher the average settlement amount becomes.

Challenges and Opportunities

Carrier adoption of advanced AI for claims processing grew 60% YOY in 2022, per CCC’s Annual AI Adoption Report, but even with access to earlier insights from reputable photo AI technology solutions, carriers may still face challenges aligning their claims processes with their customer preferences.

As insurance customers increasingly seek richer, more personalized experiences, insurers must strike a balance between digital and personal channels to ensure satisfaction.

Despite this, carriers’ ability to leverage advanced photo AI to access early data insight cannot be overstated. With this revolutionary technology, insurers now have the means to make informed decisions earlier in the process, resulting in improved, and quicker, outcomes for all stakeholders.

By identifying injury potential earlier, streamlining claims processes, and offering more personalized experiences, insurers are ushering in a new era of claims management. And as technology continues to advance, embracing these solutions will be pivotal in shaping the future of the industry.

Finding the Best Technology Solution for Your Needs

When evaluating photo AI solutions for early accident data, it’s important that they are:

  • Flexible, giving you the autonomy to determine how you apply AI-generated predictions within your claims management process.
  • Configured to work seamlessly within existing CCC-supported workflows to help align the data analysis with your specific business rules and objectives.
  • Actionable so you can tailor your claims handling process and personalize customer experiences, which improves your customer satisfaction and overall claims processing efficiency.