New developments in computing and software technologies,smart­phones and apps provide consumers with an increasing numberof options to complete routine tasks. Consumers enjoy convenience,while service providers achieve efficiencies, savings and increasedcustomer satisfaction.

Take the example of making a check deposit. Only a few yearsago, bank customers had one option. They had to locate a branch,travel there, and wait in line for a teller to make a deposit.Then, Automated Teller Machines (ATMs) came along. ATMs were placedat numerous locations, offering bank customers' convenience in whenand where they banked. Banks invested in procuring and servicingATMs, but saved over time on physical locations and relatedexpenses.

Advancements in technology, including mobile devices, have takenconvenience to a new level with some banks now allowing custom­ersto snap photos of the front and back of an endorsed check using asmartphone—and the deposit is confirmed. Convenience when and wherethey need it— from their homes, on the road, the beach, anywherethey want.

Similarly a night at the movies isn't what it used to be. Homeentertain­ment options have been evolving. We've come a long wayfrom the mom and pop video shop and the Blockbuster chain. Videorenters used to have to find a store near them and once they did,it wasn't always convenient to pick up or return.

Redbox turned this model on its head, giving the conveniencefactor a boost, by placing its kiosks where its customers goeveryday. Redbox customers reserve a DVD—or videogame—online. Then,they can pick up the rental at their commuter train station, asupermarket, a pharmacy, wherever Redbox is located.

But why even go out? Technology now allows consumers to selectvideo on-demand, which is streamed directly to their television,initiated by online ordering and likely paid for using some form ofelectronic payment.

Bank customers and movie-watchers have lots of choices now. Andit's none too soon, as consumers of every type of product andservice expect it. Consumers have moved into the drivers' seat andsmall and big businesses alike understand that and are rallying tooffer more of it.

Informed Consumers

How consumers make decisions about which services and productsthey choose is changing as well. Increasingly, search engines andsocial networks play a role.

GroupM Search conducted a study of one million Internet users tofind out how they selected brands in the telecommunications andconsum­er packaged goods industries. Group M reported: "Overall,consum­ers are equally likely today to use a combination of searchand social media in their path to purchase as opposed to justsearch."¹

Consumers are turning to search engines such as Google andsocial networks such as Facebook, Trip Advisor and Yelp forrecommenda­tions of restaurants, movies, hotels, even physiciansand hospitals. Considering these advancements, it's not surprisingthat consumers use Google and contact their friends on socialnetworks for advice on choosing a repair shop. They likely feelthose recommendations are trustworthy.

Auto Insurance, Customer Service and Choice

Auto carriers have long worked with Direct Repair Programs(DRPs) to offer their insured options as to where they take theirvehicles for repair. This approach served many purposes, includingservice guarantees, while providing some level of consistentbusiness to shops. Consumers were happy to have a "short list" ofshops provided to them, but could still make the final decision onwhere to take their vehicle.

A fairly win-win-win scenario, but these arrangements still havesome shortcomings. For example, when the DRP repair shops are notconveniently located to the insured's home or office, or when theconsumer prefers a repair shop based on brand recognition, previousexperience, or reputation.

Another challenge with the DRP workflow is that 5 to 10percent of consumers will go directly to a repair shop toget an estimate before filing a claim. This can createinefficiencies for the insurance carrier and repair shop as theywork to process the details of the claim, and manage the repair.The ensuing back and forth can represent a potential cost of $50 to$200 per claim to insurers and a prolonged cycle time forpolicy­holders, according to CCC Information ServicesInc.²

Extending the Repair Network

As service delivery expectations continue to evolve,opportunities now exist for insurers to expand their repair shopsnetwork which provides not only an increase customer choice, butcan also help to manage costs, reduce cycle times from first noticeof loss (FNOL) through completion of vehicle repair.

Delivering on choice has some cost benefits, too. There has beena dramatic shift in the method of inspection (MOI) away fromcarrier staff appraisers toward repair shops. In 2012, repair shopsare responsible for 44 percent of MOI, up from 34 percentin 2005, CCC has found. At the same time, staff appraisers wereresponsible for 50 percent of MOI in 2012, down from 61percent in 2005.³

How do you know which claims are best routed to a repairpartner? Predictive analytics is playing a big role. Claiminformation taken at FNOL can now be immediately processed againstcarriers' specific rules for how they prefer to handle claims,helping the FNOL rep make decisions quickly. For example, for arepairable vehicle, decisions can be made by the carrier to selectthe most optimal appraisal source.

The question now is how to work with the broadest number ofshops in the most convenient way possible?

Time for a New Approach

The industry is beginning to embrace all that it means to betruly 'open' and new advances in technology that are enabling autoinsurance car­riers to take advantage of this trend, offering themthe ability to:  

• Provide their customers with more choices and potentially moreconvenient options.
• Electronically communicate seamlessly with shops outside theirtraditional MOIs.
• Make efficient estimating channel decisions at FNOL.

Different costs are associated with each choice and these costshave been hard to anticipate in advance. This is changing.Insurance car­riers can now incorporate non-DRP partners into theirrepair network with minimal workflow changes and high impact onclaimant choice and satisfaction.

CCC ONE^™ Workflow – OpenShop

Open Shop is the industry's first integrated tool to provideinsurance carriers with the ability to electronically sendassignments to repair shops outside of their DRP networks.Insurance carriers can now se­lect from among the industry's mostopen network. For repairers, Open Shop assignments are received andprocessed like a DRP assignment, and are clearly identified in theCCC ONE message center, making it simple to differentiate them fromDRP assignments. Open Shop is the latest offering for the CCC ONE®platform that enhances collaboration between repairers andinsurance carriers and improves the ability for each to betterserve their mutual consumer.

To learn more about Open Shop, please visit http://ccc.cccis.com/openshop.

¹GroupM Search, "The VirtuousCircle: The Role of Search and Social Media in the PurchasePathway," February 2011.

²CCC Information Services DataWarehouse, September 2012.

 ³CCC Information ServicesData Warehouse, Sept 2012.