Predictive Solutions: Make Informed Loss Decisions the First Time

The average consumer today has an auto accident once every seven to 10 years, offering auto insurer's limited interaction with consumers outside of potential policy questions, bill time, and sometimes through other services such as banking. However, the real moment of truth for the insurer is at the time of an accident, making claims handling one of the most significant opportunities for an insurer to retain or lose a customer. 

The ability for insurance carriers to advance their use of analytics to improve the customer experience is becoming a must, particularly as consumers demand the claims experience be as satisfactory as with any other service provider or retailer, for example.

Many claims organizations have made good use of analytics to help track performance and improve collaboration with business partners, including:  

• The use of electronic appraisal reviews and shared guidelines have helped to ensure business partners have the information needed to fulfill work in a transparent, compliant, and complete manner.  
• The use of management dashboards have helped facilitate claims performance reviews in a concise, targeted manner, enabling managers to address specific areas of performance, adjust levers,and evaluate the impact in real time. 

These tools are necessary and valuable, but they represent the tip of the iceberg. Advancements in technology have enabled the next wave of analytical tools that lead to more actionable information and less reliance on human interpretation of data. Today's tools also work to more directly enhance the customer experience.  

What's Next?

Two big challenges remain in today's claims process: slow total loss identification and inefficient workflows, beginning right at first notice of loss (FNOL).

To identify potential total losses, insurance carriers have historically used a series of questions, or a 'decision-tree' method to determine whether a vehicle is repairable or a potential total loss at FNOL. This is problematic as many potential total losses aren't identified at FNOL and are advanced through the claims process – inspections are conducted and estimates written – before a formal vehicle valuation is requested and, only then are a majority of total losses identified. These extra steps can increase claims-related expenses, including salvage, tow and rental; increase cycle time, and negatively impact customer satisfaction.

Claims Gets Proactive

CCC has developed a predictive model that builds on work it began over three decades ago to create electronic processes for insurance claims professionals and their business partners. CCC ONE™ Predictive Solutions is an analytics tool that recommends routing damaged vehicles by applying estimated vehicle repair cost data, vehicle market values and estimated salvage costs using guidelines established by insurance carriers. Within minutes, FNOL representatives using the CCC solution can route totaled vehicles for salvage, while repairable claims are returned with recommendations for routing to the appropriate appraisal source.

CCC's automotive insurance claims domain expertise uniquely positions the company to deliver the CCC ONE Predictive Solution. 

CCC ONE™ Predictive Solutions – At Work for Forward-Thinking Carriers

Early results from a series of insurance carrier pilots show benefits in early total loss identification. With total losses, insurance carriers in the pilots have seen, on average, a 50 percent improvement in their ability to determine when a claim will exceed their established total loss thresholds, while staying within a range of 1 to 4 percent of false positives.  This helps insurance carriers to more quickly notify their customers of total losses and realize savings in towing and salvage costs.

To learn more about CCC ONE Predictive Solutions, visit: http://www.cccis.com/insurance-carriers/intake/predictive/.