• Wed. May 18th, 2022

AI helps auto insurers manage claims

Car insurers’ car inspection and damage assessment process has evolved from a person in the car to physically inspect the car to a person looking at photos of the car to an artificial intelligence (AI) solution ) which evaluates the photos.

“Now, using AI, you can get those estimates in minutes,” Shivani Govil, product manager at CCC Intelligent Solutions, told PYMNTS.

By evaluating the damage shown in the photos, the AI ​​can determine if the car is repairable or a total loss, the cost of a repair, and information about the car that will determine that cost. This is a difficult task in an age where there are over 6,000 makes and models and over 20,000 parts on every vehicle.

“How do you line up the year, make, model, part, color, trim, etc., with the repair that should be done on that large number of parts? That’s where the use of AI and photo technology to deliver these types of solutions in minutes is extremely helpful,” Govil said.

Impacting people’s daily lives

It’s one of the many ways AI has been deployed to reduce the cost and time of the estimating process, make repairs easier, and get vehicles back on the road.

CCC, a Software-as-a-Service (SaaS) platform for the property and casualty insurance industry, reports that the application of advanced AI for auto claims processing grew 50% year over year on the other.

With these solutions, the average 50-day cycle time to resolve a claim can be reduced by days or weeks, Govil said. This is important for the industry because more than 20 million auto claims are filed in the United States each year.

“There are so many opportunities here, it’s actually pretty amazing what you can do in the industry and how it affects people’s lives on a daily basis,” Govil said.

Provide a smooth experience

Despite these benefits, there were barriers to adopting AI solutions because the industry was accustomed to using legacy technology platforms and having touch-based interactions with end users. Some companies were concerned that AI would reduce the human empathy that comes into play while helping a customer through a time of crisis.

The onset of the pandemic accelerated a shift in that way of thinking, but even before that the industry had begun to transform as people began to see the benefits of technology that was being used in other industries, like financial services.

Consumers have also been driving this movement. In their personal lives, people now expect an experience that allows them to get things done seamlessly with minimal interaction or contact. Govil set the restaurant example: People now expect to choose from a wide selection of restaurants, have food delivered, and pay automatically.

“Now, repairing and resolving a claim is a much more complex process, but as a consumer you still expect that seamless experience that everything happens behind the scenes,” Govil said. “That too is driving the adoption of some of these types of technologies.”

Offering consumers the best of both worlds

For insurance companies, AI solutions free up staff from estimating tasks and allow them to spend more time looking after people. Thanks to the faster estimates provided by AI, carriers can also provide near real-time advice to consumers on what to do. For example, if the carrier sees from the photos that the car will be a total loss, they can let the consumer know so they can plan accordingly.

“Not only is it personalized, but it also has to be human and empathetic,” Govil said. “This is where freeing up more time, even having the ability to use AI to deliver more empathetic experiences, all come together to give consumers the best of both worlds.”

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