How AI and telematics deliver smarter risk analysis

Risk analysis is changing. Underwriters are ready to supplement traditional methods, such as credit scores, to assess policyholder risk. With the accelerating rise of telematics, access to rich data points which are easily integrated into carrier systems allows for a deeper look at insights important to predicting customer behaviour.

In a fireside chat as part of the online Underwriting Innovation USA conference taking place November 10 to 12, Jason Verlen, senior vice president, product management, CCC Information Services, will discuss the benefits of artificial intelligence (AI) and telematics in detail. Here he outlines what delegates can expect from the session.

What are the main points you aim to address in your presentation?
We are witnessing an evolution of traditional risk analysis. In the wake of COVID-19, a decline in mobility, a shifting regulatory environment and an increase in insurance customer expectations for easy, digital experiences has ushered in a new era for underwriters.

I will highlight the shift in digital strategy in the wake of COVID-19’s disruption, how the wealth of connected vehicle data changes how we assess drivers, and the role AI, mobile, internet of things (IoT) and network play in delivering for underwriters.

Why are these topics important—especially now?
Consumers expectations have changed. COVID-19 has accelerated the pace at which they demand seamless digital experiences as they interact digitally with countless businesses and services every day. And, with fewer people driving to work every day, consumers are rethinking the traditional insurance model and turning their attention toward usage-based insurance plans. The market is demanding a change to risk analysis and pricing models.

Access to new, complex data via telematics, connected devices is now available. For example, these new data sources can offer vehicle identification number (VIN)-specific data that modernise underwriters’ risk analysis.

What services does CCC offer in relation to these topics?
CCC Information Services offers a number of solutions specifically for underwriters.

The CCC VIN Connect portfolio offers access to new data sources at the point of quote. From driving behaviour data to detailed, VIN-level vehicle insights and estimated values, underwriters can unlock a more detailed view of what they are insuring at the time of quote.

Additionally, CCC Quick View provides an easy, digital way to receive information on a vehicle’s condition at the time of policy renewal or binding via a mobile app. It links the underwriting process to the claims process by documenting pre-existing damage for easy review should a claim be filed.

Finally, CCC Quick Chat offers a two-way, real-time texting solution that makes it easy for insurers to engage digitally with policyholders throughout their customer journey—from policy to claims and across all lines of business.

What technical developments have made these offerings possible?
The short answer is mobile, IoT and AI. Digital adoption of mobile solutions has allowed insurers to speed and improve existing process, enabling inspections, appraisals, and repair estimates virtually via mobile apps.

AI advances processes further—applying photo analytics delivers a higher level of visibility and efficiency to the inspection phase of the customer journey.

Finally, upon obtaining consumer consent, the CCC X data exchange can use driving data from connected vehicles to power personalised experiences delivered via our VIN Connect application programming interface.

What advantages do they give insurers?
Insurers can increase productivity through time savings, which realise cost savings, balance their risk portfolio and provide their customers with differentiated customer experiences.

What has the response from the insurance industry been like?
Nearly 100 insurers are leveraging CCC solutions built on AI, IoT and mobile technology.

How does an AI-centred approach help to reduce risk pre- or post-bind and prevent fraud later in the claims lifecycle?
Underwriters can quickly verify garage location with geocoding, find pre-existing damage, identify custom equipment and high-risk conditions. Drivers document vehicle details using the Quick View mobile app. These images are then easily referenced in the event of a physical damage claim for comparison by a claims adjuster.

What do you hope attendees get out of your session?
The time is here to modernise risk analysis and deliver seamless insurance customer experiences. Insurers do not have as much time as they might think to begin delivering for their customers.

CCC has already helped disrupt the claims side of insurance by offering differentiated solutions powered by AI, IoT mobile technologies and a connected network. We know how to apply these to underwriting and that’s what we’re doing now. Underwriters should feel confident selecting a partner that has already delivered for insurers and their customers.

Jason Verlen is one of the speakers at Intelligent Insurer’s Underwriting Innovation USA, a virtual event addressing how to accelerate underwriting profitability in a world of changing risks, taking place between November 10 and November 12, 2020. Full details can be found here.