I recently attended CCC Intelligent Solutions’ (CCCIS’s) conference in Atlanta, where it showcased its data- and AI-enabled capabilities in auto claim administration to its stakeholders — insurers, OEM players, ecosystem partners, and industry analysts. One of the conference’s central themes was using data, insights, and AI (especially eomputer vision) to automate complex decision-making in the auto claims process. Incidentally, CCCIS’s systems generated 1.8×10^54 combinations of factors in various types of auto claims decision-making. To effectively use AI, it is critical to understand the moments of truth in a vehicle claims process — what matters to the claimants and the insurer. To that end, CCCIS shared various insights from the studies it conducted. One interesting insight was regarding the statistically significant factors for customer churn. They were:
- Total loss, especially in an upside-down loan situation (when one’s loan balance exceeds the car’s value).
- Presence of injury (increasing the likelihood of churn by 1.7x).
- Being a first-time claim filer also increases the likelihood of switching insurers.
Data insights-driven decision-making is fundamentally about maximizing curiosity velocity — the speed at which the organization can move from knowledge-seeking to uncovering insight to taking action. Such organizations effectively use data, analytics, and software in closed, continuously optimized loops to differentiate and compete, informing and automating decisions, optimizing operations, and enhancing customer and employee experiences. These organizations also grow faster: Data and analytics decision-makers at firms with advanced insights-driven capabilities are nearly three times more likely than beginner-level companies to report double-digit year-over-year revenue growth.
These advanced insights-driven companies are now integrating emerging AI capabilities into their processes and operating models to derive faster, more scalable AI-driven decision-making. Organizations can benefit from data, analytics, and AI by building capabilities across three guiding principles — alignment, trust, and adaptivity — common to high-performance organizations.
Our newly published report, Grow Your Business With Data And AI, illustrates how organizations can automate and inform decisions with data and AI for competitive advantage and growth. It discusses seven capabilities common to businesses that effectively leverage data and AI. Further, our insurance clients can read the reports Identify Top AI Opportunities In Property And Casualty Insurance, Identify The Top Opportunities For AI In Life Insurance, and Top Computer Vision Use Cases In Insurance for the insurance industry-specific outlook on AI.
Forrester Can Help You Navigate This Exciting Future
Overall, the future of data-enabled AI technology looks exciting. As technology advances and the world changes, industries must adapt, and we at Forrester stand ready to help with a wide range of research on data and AI, including in the insurance industry, that can assist you in shaping your future.
Forrester clients can download Grow Your Business With Data And AI for our take on successfully leveraging data and AI. They can also connect with me through an inquiry or guidance session to discuss how to grow their business with data and AI and any associated topics.
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