CCC and Verisk Team to Tackle Auto Insurance Fraud

CCC Intelligent Solutions and Verisk have partnered to combat a $308 billion problem: insurance fraud.

The companies announced their partnership Tuesday (May 9), saying it would integrate the anti-fraud analytics from Verisk’s claims fraud detection solution with CCC’s claims platform.

“This integration will help P&C insurers fight the rising threat of fraud in auto physical damage (APD) claims,” the two firms said in a news release.

“When fully integrated, insurers will be able to quickly and easily identify potential fraud in real-time within existing CCC-powered workflows.”

As PYMNTS noted earlier this year, fraud cost the insurance industry an astonishing $308.6 billion in 2022.

That’s according to the Coalition Against Insurance Fraud, which commissioned an analysis from the Colorado State University Global White Collar Crime Task Force. By way of comparison, the coalition estimated that fraud losses were just $80 billion in 1995.

(PYMNTS also points to a FICO survey that indicates why fraud may be so prevalent and expensive: consumers are open to committing it, with 42% of respondents in South Africa saying it was OK to embellish claims in some situations.)

Meanwhile, as technology grows more sophisticated with the advent of things like generative artificial intelligence (AI), the threat of fraud is projected to grow, CCC and Verisk said.

With the increasing adoption of technology and the emergence of new capabilities like generative AI, the threat of fraud is expected to increase.

“With macro-economic pressures like inflation and supply chain constraints, coupled with increasing criminal sophistication, it’s become necessary for insurers to quickly and accurately detect and defend against fraudulent claims,” said Shane Riedman, general manager of anti-fraud solutions at Verisk.

And while technology like AI may exacerbate the threat of fraud, CCC executives noted on an earnings call last week that AI is also helping promote a more streamlined and cost-effective claims experience, with a CCC deep-learning AI tool processing 14 million claims.

“Our clients in the P&C insurance economy are increasingly focused on the need to manage the business through two powerful megatrends: accelerating operational complexity and rising consumer expectations,” CCC CEO Githesh Ramamurthy said during the call. “Last year, auto insurers in the United States paid out over $200 billion in claims indemnity and spent about $25 billion on administrative expenses to handle those claims.”

CCC and Verisk say their new collaboration builds on past work between the companies, which allow auto insurers to use CCC’s platform to access insights from Verisk’s Liability Navigator to determine damages in bodily injury claims.

The partnership also comes just days after TempusDirect and CCC said they were working together on third-party casualty solutions.