The average consumer today has an auto accident once every sevento 10 years, offering auto insurer's limited interaction withconsumers outside of potential policy questions, bill time, andsometimes through other services such as banking. However, the realmoment of truth for the insurer is at the time of an accident,making claims handling one of the most significant opportunitiesfor an insurer to retain or lose a customer. 

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

Many claims organizations have made good use of analytics tohelp track performance and improve collaboration with businesspartners, including:  

• The use of electronic appraisal reviews and shared guidelineshave helped to ensure business partners have the information neededto fulfill work in a transparent, compliant, and completemanner.  
• The use of management dashboards have helped facilitate claimsperformance reviews in a concise, targeted manner, enablingmanagers to address specific areas of performance, adjustlevers,and evaluate the impact in real time. 

These tools are necessary and valuable, butthey represent the tip of the iceberg. Advancements intechnology have enabled the next wave of analytical tools that leadto more actionable information and less reliance on humaninterpretation of data. Today's tools also work to more directlyenhance the customer experience.  

What's Next?

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

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

Claims Gets Proactive

CCC has developed a predictive model that builds on work itbegan over three decades ago to create electronic processes forinsurance claims professionals and their business partners. CCCONE™ Predictive Solutions is an analytics tool that recommendsrouting damaged vehicles by applying estimated vehicle repair costdata, vehicle market values and estimated salvage costs usingguidelines established by insurance carriers. Within minutes, FNOLrepresentatives using the CCC solution can route totaled vehiclesfor salvage, while repairable claims are returned withrecommendations for routing to the appropriate appraisalsource.

CCC's automotive insurance claims domain expertise uniquelypositions the company to deliver the CCC ONE PredictiveSolution. 

CCC ONE™ Predictive Solutions – At Work forForward-Thinking Carriers

Early results from a series of insurance carrier pilots showbenefits in early total loss identification. With total losses,insurance carriers in the pilots have seen, on average, a 50percent improvement in their ability to determine when a claim willexceed their established total loss thresholds, while stayingwithin a range of 1 to 4 percent of false positives.  Thishelps insurance carriers to more quickly notify their customers oftotal 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/.