CCC Information Services is a tech and data company serving the automotive, repair and insurance industries. The company recently announced that Volkswagen has chosen the company as the exclusive provider for insurance telematics. To find out more, Auto Futures speaks with Andreas Hecht, GM and SVP, OEM Services Group for CCC.
Can you provide some information on CCC, such as its creation and goal?
CCC is a technology and AI company at the intersection of the multi-trillion-dollar auto insurance, collision repair, and connected car space. The company’s platform connects industry participants, and through the non-stop innovation of hundreds of data scientists and engineers, CCC delivers business services and applications for customers to win in the new driving economy, defined by telematics, digital interactions, and consumer-centered experiences.
Tell us about the partnership with Volkswagen. How did it come about and what does this mean for CCC?
VW has chosen CCC as its exclusive provider of insurance telematics services, supporting its Car-Net connected vehicle platform. Upon obtaining consumer consent, the CCC X data exchange will utilize driving data from Car-Net and power personalized experiences through VW’s DriveView program, including driver feedback and tips, and connecting users with insurers for special offers.
Through the agreement, VW USA will also integrate to CCC VIN Connect, which makes driving behavior data available at the point-of-quote, making it fast and easy for insurers to offer VW consumers personalized discounts.
For background, insurance telematics includes the use of driving data to inform and deliver personalized services to drivers who have given consent for their driving data to be accessed/shared. Connections to insurance offers and usage-based insurance programs are two use cases. Uniquely, CCC can also apply telematics data to the claims process, transforming the claims experience for drivers and insurers.
Research from analyst firm Berg Insight shows strong growth in telematics with the total number of insurance telematics policies in force forecasted to increase from an estimated 14.7 million policies at the end of 2019 to reach 53.6 million policies by 2024, representing a compound annual growth rate of 29.6 percent.
CCC has done some consumer research of its own and findings show 90 percent of respondents with driver-based insurance are satisfied and 50 percent of those that haven’t used it are interested.
CCC works with 350 auto insurers, including 19 of the top 20 U.S.-based insurers.
How has telematics become attractive for the insurance sector and what benefits does the innovation bring to these businesses?
With COVID-19, people are driving less, which is driving interest in telematics, or usage-based insurance (UBI) programs. Traditionally, UBI has been centered around how someone is driving – is someone a safe or reckless driver, for example. But now that in-vehicle technology has increased, and coronavirus has shifted usage patterns, we’re also seeing an increased interest in mileage-based UBI. You only pay more when you drive more.
In addition, how have new connectivity solutions such as this transformed consumers’ lives?
CCC’s view is that telematics can play a significant role in two key areas – safety and savings. We’ve talked about the savings aspects already, so let’s focus on safety.
With telematics data, accidents can automatically be detected, using in-vehicle sensors, sensors in mobile apps, or aftermarket devices installed in the vehicle. When data about a detected accident is shared with automakers or auto insurers, immediate action can be taken to ensure the driver and occupants are ok, speeding time to when medical assistance can arrive on the scene. When occupants are ok, mobile technology, photos, and AI can work together to speed the claims and repair process, should drivers choose.
In 2019, CCC introduced a mobile solution that provides automakers with a way to protect and guide their customers at the moments following an accident. Volvo was the first automaker to leverage CCC® Accident Advisor, which combines emergency services and checklists, guided accident documentation, and digital claims and repair services to keep drivers safe, informed, and in control following an auto accident.
For participating telematics-enabled vehicles, crash data is transmitted to automakers in real-time. CCC, through its CCC X data exchange, converts that data into actionable insights so automakers can proactively connect with their vehicle owners via their smartphones.
What is usage-based insurance?
Usage-based insurance (UBI) is a type of vehicle insurance where the costs are dependent upon actual driving behavior versus other factors including a person’s credit score, marital status, etc. which are frequently used today.
What next for CCC?
CCC is constantly innovating so you can expect to see more on the telematics front across the various safety and savings use cases.