SPECIAL EDITION - CRASH DETECTION: CONSUMER SAFETY vs. INSURANCE CLAIMS APPLICATIONS  March 2nd 2023

Progressive (PGR) Q4 2022 Earnings Call Transcript (including announcement of new Accident Response/Crash Detection feature)

Editorial Comment: There's a lot of information in yesterday's Progressive Insurance earnings call transcript (see link) but we are particularly excited about what Jim Haas, Usage-Based Insurance Business Leader shared on their introduction of a new app-based Accident Response feature which includes Crash Detection something we believe can truly transform the legacy auto insurance claims model. However, reliable false positive suppression is mandatory in this use case.

We liked the way Mike Zaremski, Sr. P&C insurance equity research analyst and MD at BMO Capital Markets summed up this development, reprinted here with permission.

"Progressive is building upon its material first-mover competitive telematics advantage by offering a new crash-detection/safety service to its customers. We estimate PGR's competitive advantage in telematics is also structural in that customer adoption rates of telematics-based policies via D-2-C distribution are multiples higher than via a broker, meaning PGR is building upon its competitive advantage vs. its average peer on a daily basis (note, most of its peers distribute via insurance brokers)."

Stephen Applebaum and Alan Demers

Solera marries prevention with cure - ARC360

A special ILC/ARC360 showcase webinar has highlighted the benefits of Solera Mentor by eDriving, a digital claims solution that does two things at once: it reduces collisions by improving driver behaviour and then leverages the latest technology to accelerate claims when they do occur.

By combining the two functions in a single platform, Solera is taking both a prevention and cure approach to rising claims inflation.

Presenting the webinar – ‘Crash. Detect. Settle: Digitising the motor claims journey’ – Andrew Barratclough MBA, VP Partnerships Director Global, Solera | eDriving, said, “Having an app that a driver is using to reduce the number claims in the first place, but then linking that directly to the claims journey, is unique. The key is that it shares data between everyone, there are no challenges or delays because it’s all within a single family on a single platform.”

Google emphasizing Pixel Value and getting features first + Personal Safety app with Car Crash Detection

Surprisingly, the camera is third on the list, and that’s followed by a “Personalized help when and where you need it.” This discusses the Tensor G2, Live Translate, and the Personal Safety app with Car Crash Detection. 

Top three reasons why Apple’s crash detection obviously wasn’t intended for enterprise programs

Undeserved negativity surrounding Apple’s crash detection We’ve seen a lot of negative postings about the newly released Apple crash-detection service. We think that negativity is overwrought and misplaced. Apple did not intend to re-define crash detection, and certainly did not intend for the service to be used for enterprise business. Therefore, they can’t be held accountable for those expectations.

Most likely, Apple was only trying to provide a life-saving service to some of its consumers, because it could with their new devices. If Apple knew they could save a few lives, they’d be irresponsible not to do so.

But they didn’t set out to conquer the world of crash detection services. Out of the gate, they proclaimed clearly that they were detecting only severe crashes—and wouldn’t detect all of them. They should be lauded for their efforts to save the lives that they can save and for raising the profile of smartphone-based crash detection.

Sfara.com blog

CCC and Sfara Help Insurers Connect Accident Data to Claims

CCC Intelligent Solutions (CCC), a leading SaaS platform powering the P&C insurance economy, and Sfara, a leader in smartphone-based collision detection and personal safety technology, announce today the companies will work together to accelerate claims management. Insurance customers of the two companies will be able to seamlessly connect Sfara’s mobile crash detection data with CCC’s claims management solutions, improving and speeding claims outcomes. CCC works with more than 300 U.S. auto insurers, including 18 of the top 20 carriers, powering better claims experiences for millions of drivers annually.

“We are excited to work with CCC to help our shared insurance customers maximize the value of collision detection data by expanding its use across the claims process,” said Erik Goldman, CEO, Sfara. Sfara’s technology provides near-immediate detection of accidents, including those at ultra-low speeds, while minimizing false positives. Working with CCC will help us seamlessly pass this timely, comprehensive view of an auto accident to the insurance industry at scale, enabling insurers to initiate and inform a number of activities and decisions across the claims process.”

Zendrive Joins CCC for Instant Mobile Crash Detection Data

CCC Intelligent Solutions Inc., announced Dec. 13 that Zendrive, a mission-driven company making roads safer with data and analytics, is the newest mobility risk intelligence provider to join the CCC network. Insurance customers of the two companies will be able to seamlessly connect smartphone-centric crash detection data with CCC's claims management solutions, helping to improve and speed claims outcomes. CCC works with more than 300 U.S. auto insurers, including 18 of the top 20 carriers, powering better claims experiences for millions of drivers annually.

Cambridge Mobile Telematics Launches Next-Generation Platform for Proactive Claims -

Cambridge Mobile Telematics (CMT), the world’s largest telematics service provider, today announced DriveWell Crash & Claims, the most advanced telematics solution for auto insurance claims. The highly anticipated efficiency and effectiveness that telematics brings to claims is now a reality. Before telematics crash data, insurers had to wait for customers to call before reacting to a claim, manually collecting information and entering it into their systems. Now, with DriveWell Crash & Claims, insurers can offer proactive, real-time services to their customers, providing peace of mind and life-saving help. Telematics crash data helps insurers create a streamlined claims experience for their customers after a traumatic event.

CCC Intelligent Solutions Holdings Inc. Announces Fourth Quarter and Fiscal Year 2022 Financial Results

“CCC delivered another year of strong financial performance, with 2022 revenue growth of 14% and adjusted EBITDA margin of 39%, with revenue and adjusted EBITDA above our guidance ranges. We believe our solid performance reflects the durability of our business as we continue to deliver innovation and operational efficiency for our customers,” said Githesh Ramamurthy, Chairman & CEO of CCC.

“Our customers are adopting advanced digital capabilities as a primary mechanism to improve the consumer claims experience while simultaneously dealing with a challenging operating environment characterized by labor shortages, inflation, cycle time increases, and greater vehicle complexity,” continued Ramamurthy.

“These solutions increasingly leverage CCC’s AI capabilities and interconnected network to deliver process improvements and more holistic consumer experiences. We deeply appreciate the trust our customers are placing in us when they adopt more CCC solutions.”

The insurance industry is not making fast enough progress on AI, Accelerant’s Wentworth

In an interview with Reinsurance News, Heather Wentworth, Chief Data Officer at Accelerant, has suggested that the insurance industry as a whole is not “making enough progress” to get the data needed to successfully use artificial intelligence (AI) technology — which she argues will be transformative for the ecosystem.

AI and machine learning has become a growing topic within both insurance and reinsurance over the last few years, as companies begin to use this technology to manage manual, low complexity workflows and increase operational efficiency. Since its founding in 2018, Accelerant has focused on building a platform that creates better risk exchange outcomes, which Wentworth said started with investing in better data infrastructure.

When answering a question regarding what advantages do companies have who possess both the talent and resources to be able to use this technology, Wentworth said: “Ultimately faster information leads to earlier — and better — decision making.

“We’ve seen this a million times at Accelerant in our work with our Members. Our technology platform lets us detect issues early. That helps us make good decisions more quickly — mitigating issues before they turn into big problems, for example. But it’s not just about underwriting decisions; it’s about decision making for the business as a whole. The outcomes you’re able to achieve when you have access to and confidence in the data are just unbelievable.”

ACORD polls insurance pros on future of industry

ACORD, the global standards-setting body for the insurance industry, has released the results of a survey on the future of insurance.

ACORD CEO Bill Pieroni presented the findings of the Insurance 2040: Prospects and Predicaments for Innovation & Value Creation survey at the DXC Connect Insurance Executive Forum in Charleston, S.C.

The survey polled insurance professionals about their perspectives on the outlook for the insurance industry over the next 20 years. Respondents identified the technologies, practices and strategies they believed would have the greatest impact on the global insurance sector in both the short and long term.

Sources of competitive advantage Nearly 50% of respondents anticipated that their greatest source of long-term competitive advantage would be the way in which they used technological capabilities, ACORD said. They said that operational efficiency and excelling in core functions like underwriting and claims may not be enough to drive superior performance. Instead, they felt technology-enabled optimization of these functions will become a baseline, necessary but not sufficient to maintain an advantage over the long term.