Adoption of AI processing in auto claims accelerated in 2022
The number of claims using four or more advanced AI applications more than doubled this past year, according to CCC Intelligent Solutions.
Through 2022, the use of advanced artificial intelligence in claims processing increased 60% compared with the year prior, according to CCC Intelligent Solutions, which reported this was the third straight year of significant growth in AI adoption in auto claims.
Further, CCC reported the number of claims that leveraged multiple AI processes more than doubled year-on-year.
“The industry has achieved more with advanced AI than many thought was possible a few short years ago,” Jason Verlen, vice president, product marketing, CCC, said in a release. “AI is now applied at key stages across the claims process and is capable of auto-generating a complete repair estimate with line level detail in seconds without human intervention.”
The fast adoption of AI was foretold in a 2021 CCC survey, which found that 70% of insurance companies rated AI as “highly important” for meeting their organization’s business goals.
While insurers are embracing AI for auto claims at an accelerated clip, CCC projects there is still significant adoption to come. AI is only used by 43% of insurance firms, according to a study by Gartner, which also reported that 92% of executives said they have already deployed AI at their organizations or expect to do so in the future.
CCC reported AI is being applied at key points in the claims process to reduce cycle times, increase efficiency and improve customer experiences. Concerning this final point, a 2020 survey from CCC found that 80% of policyholders prefer digital claims processes because they are more user friendly and can cut the claims process by as much as a third.
“This progress is compelling, but it’s not mission accomplished,” Verlen said. “Market dynamics are necessitating more. While some macro trends, including supply chain issues are likely to subside with time, other factors, including labor shortages and increasing vehicle complexity, will require more AI and deeper connections across the ecosystem to meet the demands of today’s consumer and enable insurers and repairers to realize better business outcomes.”
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