GEICO Extends Relationship With CCC to Include Smart Digital Fraud Detection

Rhea-AI Summary

CCC Intelligent Solutions has launched its CCC® Smart Red Flag Detection solution, utilized by GEICO to combat auto insurance fraud. This AI-powered technology identifies claims discrepancies and duplicate filings, enhancing assessment accuracy and the overall claims process.

Fraud in the insurance industry costs over $40 billion annually, impacting premiums for U.S. families. The integration aims to improve visibility into suspicious activity, thus reducing fraudulent payouts and streamlining processing for insurers.

Positive

• Launch of CCC® Smart Red Flag Detection solution with GEICO as the first insurer to implement it.
• AI capabilities improve accuracy in assessing claims and identifying fraud.
• Potential to significantly reduce fraudulent payouts and improve customer experience.
• Addresses a major issue of fraud that costs the insurance industry over $40 billion annually.

Negative

• None.

Powered by AI, CCC® Smart Red Flag with Cross Carrier Analysis Uncovers Claims Discrepancies and Duplicate Filings Across Participating Insurers

Smart Red Flag Detection Capabilities Deliver Important Advancement Toward Straight-Through Processing

CHICAGO--(BUSINESS WIRE)-- CCC Intelligent Solutions (CCC), a leading SaaS platform powering the P&C insurance economy, today announced GEICO is the first auto insurer to leverage its CCC® Smart Red Flag Detection solution with Cross Carrier Analysis. Powered by AI, CCC Smart Red Flag Cross Carrier uncovers claims discrepancies and duplicate filings for the same damage. The technology works to review claims for a single carrier or across participating carriers using an automatic claims comparison feature available to insurers on the CCC network. CCC 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.

Today, the annual total impact of fraud to the insurance industry (non-health insurance) is estimated 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," said Troy Penry, vice president of Claims at 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. 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.

"Carriers across the industry recognize the benefit of a robust database of cross carrier claim details to improve industry-wide fraud detection," said Scott Janik, senior vice president, 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."

Click here to learn more about CCC® Smart Red Flag with Cross Carrier Analysis.

About GEICO

GEICO (Government Employees Insurance Company), the second-largest auto insurer in the U.S., was founded in 1936 and insures more than 28 million vehicles in all 50 states and the District of Columbia. A member of the Berkshire Hathaway family of companies, GEICO employs more than 43,000 associates countrywide. GEICO constantly strives to make lives better by protecting people against unexpected events while saving them money and providing an outstanding customer experience. Along with personal auto insurance, commercial auto and personal umbrella coverages are also available. Homeowners, renters, condo, flood, identity theft, term life, and more coverages are written through non-affiliated insurance companies and are secured through the GEICO Insurance Agency, LLC. Visit geico.com for a quote or to learn more.

About CCC

CCC Intelligent Solutions Inc. (CCC), a subsidiary of CCC Intelligent Solutions Holdings Inc. (NYSE: 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 30,000 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 and AI solutions. Such differences may be material. 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 most recently filed Form 10-K by CCC with the Securities and Exchange Commission (“SEC”) on March 1, 2022, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220928005139/en/

CCC Media Contact:

Michelle Hellyar

773.791.3675

Source: CCC Intelligent Solutions Inc.

FAQ

What is the CCC Smart Red Flag Detection solution?

It is an AI-powered technology developed by CCC Intelligent Solutions to identify claims discrepancies and duplicate filings in auto insurance.

How does GEICO benefit from the CCC Smart Red Flag Detection?

GEICO benefits by enhancing its claims processing efficiency and reducing fraudulent payouts through improved visibility of suspicious claims.

What is the impact of auto insurance fraud on U.S. families?

Auto insurance fraud costs the industry over $40 billion annually, leading to increased premiums of $400 to $700 for the average U.S. family.

When was the CCC Smart Red Flag Detection solution announced?

The solution was announced on September 28, 2022.

Who partnered with CCC for the Smart Red Flag Detection solution?

GEICO is the first auto insurer to leverage the CCC Smart Red Flag Detection solution.