(Image source: CCC website.)
CCC Intelligent Solutions (Chicago), a SaaS platform for the property/casualty insurance economy, has announced that GEICO (Chevy Chase, Md.) is the first auto insurer to leverage its CCC Smart Red Flag with Cross Carrier Analysis. CCC Smart Red Flag Cross Carrier uses AI to uncover claims discrepancies and duplicate filings for the same damage, according to the vendor. The technology reviews claims for a single carrier or across participating carriers using an automatic claims comparison feature available to insurers on the CCC network. CCC reports that it works with more than 300 U.S. insurers, including 18 of the top 20. GEICO is the second-largest auto insurer in the U.S.
The U.S. government estimates the annual total impact of fraud to the insurance industry (non-health insurance) to be more than $40 billion, costing the average U.S. family between $400 and $700 per year in the form of increased premiums.
“Auto insurance fraud is a long-standing industry problem and among the biggest factors impacting premiums,” comment Troy Penry, VP, Claims, GEICO. “Working with CCC to integrate CCC Smart Red Flag with Cross Carrier Analysis into our claims workflow, which already runs on CCC’s digital and AI technology, will create better visibility into suspicious activity, improve assessment accuracy, and reduce fraudulent payouts. The technology paves the way for better policyholder experiences and straight-through claims processing. With strong participation from insurers, we can work to eliminate fraud in auto claims altogether.”
CCC Smart Red Flag uncovers multiple filings for the same damage, duplicate VINs, odometer disparities, or garaging errors early in the claim lifecycle, according to the vendor. Using AI, damage photos are assessed, pinpointing inconsistencies and anomalies and providing clarity to appraisers and investigative teams. A Smart Red Flag score dynamically adjusts based on parameters set by insurers. Stored images and new claims photos can be viewed side-by-side and VINs and operations codes can be compared to identify common parts across claims. For insurers who opt-in, their claims are automatically compared against claims received by participating carriers on the CCC network, digitizing the process and helping to safeguard against suspicious activity, CCC says.
Protecting Customers from the Costs of Duplicate Claims
“Carriers across the industry recognize the benefit of a robust database of cross carrier claim details to improve industry-wide fraud detection,” says Scott Janik, SVP, Insurance Services Group, CCC. “By integrating AI-based detection capabilities into the digital claims experience our customers have a consistent, powerful way to help protect their consumers from the cost and inefficiencies that come from duplicate claims. Smart digital fraud detection is another important step for the industry to realize its vision for straight-through claims processing.”