CCC Crash Course Report Reveals How Labor Pressures and Increasing Vehicle Complexity Are Reshaping Auto Insurance and Collision Repair Industries
March 26 2024 - 8:00AM
Business Wire
The now quarterly report identifies macro
trends, business drivers, and technologies impacting consumer
driving, vehicle ownership, automotive claims, and collision
repair
CCC Intelligent Solutions Inc. (CCC), a leading cloud platform
powering the P&C insurance economy, today published its 2024
Crash Course Report highlighting the latest data, insights, and
trends impacting the auto claims and collision repair
industries.
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the full release here:
https://www.businesswire.com/news/home/20240326494539/en/
CCC Crash Course Q1 2024 Report - by the
numbers (Photo: Business Wire)
The report, now on a quarterly schedule, is based on information
derived from 300 million claims-related transactions and millions
of bodily injury and personal injury protection (PIP) /medical
payments (MedPay) casualty claims processed by CCC’s customers
using the company’s solutions.
Crash Course Q1 2024 found that increasing vehicle complexity,
combined with rising labor costs and shortages, are placing
persistent pressure on carriers and repairers. New findings show
that while vehicles may be safer, more capable of avoiding crashes,
and more environmentally friendly, advanced technology is
contributing to costlier repairs, higher claims costs, and longer
cycle times. Additional factors, such as scheduling backlogs, have
contributed to the 60% increase in the amount of time it takes for
vehicles to enter repair shops after estimate completion, compared
to pre-pandemic times.
“Much of what the industry is experiencing is reflective of a
new normal where complexity, beginning with the vehicle itself, is
reshaping the market landscape,” said Kyle Krumlauf, director,
Industry Analytics at CCC and co-author of Crash Course. “CCC has
shifted to a quarterly publication of Crash Course to support the
growing needs of our customers and the industry. This change allows
us to provide more data and insights more frequently, helping
industry participants anticipate challenges and be better equipped
for the road ahead."
Key findings of Crash Course: Q1 2024 include:
- Auto Tech Transformation: The report identifies key
challenges faced by the auto claims and collision repair industries
in keeping pace with the industry’s tech transformation, such as
increased costs associated with repairing advanced driver
assistance systems (ADAS) and other technology.
- Electric Vehicle (EV) Repairs: EVs are becoming more
common in repair assessments. Despite their youth, EV repairs carry
higher costs, especially in labor. Longer repair times are common
due to capacity constraints and detailed repair procedures. EVs are
totaled less often than non-EVs, reflecting changing valuation
trends.
- Replace vs. Repair: An emerging “replace vs. repair”
trend, a preference for replacing parts instead of repairing them,
demands different skill sets for the repair industry leading to
higher costs for consumers. Over the past decade, the cost
differential for repairing older versus newer model year vehicles
has grown by 35%.
- Urbanization and Weather: Acknowledging the impact of
growing urbanization and volatile weather patterns as a constant
catalyst for losses, the report confirms increases in property
losses from severe weather events.
- Subrogation: High turnover among adjusters is hindering
subrogation efforts, leading to decreased referrals, and
complicating revenue and cost reduction strategies.
- Casualty: Despite decreasing treatment duration and
procedure counts for injury claims since the peak in 2021, severity
continues to climb due to significant cost increases for medical
bills, particularly for high-dollar procedures like radiology and
surgery.
- Claims and Repair Technology: Adoption of AI and
automation tools to speed and inform functions from estimating to
scanning to parts ordering continue to grow as the industry looks
to offset the effects of labor shortages and the complexity that
comes with today’s more sophisticated vehicles.
In addition to macro trends and topics, Crash Course Q1 2024
also includes industry-level detail on claims frequency and impact
severity, medical costs, parts costs, total loss trends and
more.
Previously published annually, Crash Course will be published
quarterly in 2024 to provide more frequent updates on key trends
and insight. The Q1 2024 report is the 29th edition of Crash
Course.
Download the full report at
cccis.com/reports/crash-course-2024.
About CCC
CCC Intelligent Solutions Inc. (CCC), a subsidiary of CCC
Intelligent Solutions Holdings Inc. (NASDAQ: CCCS), is a leading
SaaS platform for the multi-trillion-dollar P&C insurance
economy powering operations for insurers, repairers, automakers,
part suppliers, lenders, and more. CCC cloud technology connects
more than 35,000 businesses digitizing mission-critical workflows,
commerce, and customer experiences. A trusted leader in AI, IoT,
customer experience, network and workflow management, CCC delivers
innovations that keep people’s lives moving forward when it matters
most. Learn more about CCC at www.cccis.com.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are
based on beliefs and assumptions and on information currently
available. In some cases, you can identify forward-looking
statements by the following words: “may,” “will,” “could,” “would,”
“should,” “expect,” “intend,” “plan,” “anticipate,” “believe,”
“estimate,” “predict,” “project,” “potential,” “continue,”
“ongoing” or the negative of these terms or other comparable
terminology, although not all forward-looking statements contain
these words. These statements involve risks, uncertainties and
other factors that may cause actual results, levels of activity,
performance or achievements to be materially different from the
information expressed or implied by these forward-looking
statements. Forward-looking statements in this press release
include, but are not limited to, statements regarding future use
and performance of CCC’s digital solutions. We cannot assure you
that the forward-looking statements in this press release will
prove to be accurate. These forward-looking statements are subject
to a number of risks and uncertainties, including, among others,
competition, including technological advances and new products
marketed by competitors; changes to applicable laws and
regulations; and other risks and uncertainties, including those
included under the header “Risk Factors” in CCC’s filings with the
Securities and Exchange Commission (“SEC”), including the Form 10-K
filed February 28, 2024, which can be obtained, without charge, at
the SEC’s website (www.sec.gov). The forward-looking statements in
this press release represent our views as of the date of this press
release. We anticipate that subsequent events and developments will
cause our views to change. However, while we may elect to update
these forward-looking statements at some point in the future, we
have no current intention of doing so except to the extent required
by applicable law. You should, therefore, not rely on these
forward-looking statements as representing our views as of any date
subsequent to the date of this press release.
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CCC Media Contact: Michelle Hellyar mhellyar@cccis.com |
773.791.3675
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