CCC’s advancements in AI solutions for insurers and repair facilities helped it end 2023 with $886.5 million in revenue for 2023, an 11% increase from 2022, according to its final fiscal year results and earnings call. 

Githesh Ramamurthy, CCC Chairman and CEO, said in an earnings call that AI solutions have played a part in the company’s forward movement. 

“I’ve noticed a significant change in my conversation with clients over the past few months,” Ramamurthy said. “While claims and repair cost inflation continue to be a concern, clients are increasingly turning their attention to the accelerating retirement of their workforces.” 

Businesses are concerned that one-third to one-half of their experienced workforce will retire by the end of the decade, he said. 

“What this means for our clients across the P&C insurance economy is that they are facing the loss of decades of institutional knowledge, which will most likely result in a smaller, less experienced, and higher turnover workforce,” Ramamurthy said. 

He said the labor shortage coincides with vehicle repairs becoming more complex. 

“As a result, our customers need help closing the skill gap with new and existing workers quickly,” he said. “These and other challenges are driving accelerating interest and adoption of AI-driven solutions across our client base.”

The company’s adjusted earnings before interest, taxes, depreciation, and amortization increased by 16% to $353.4 million for 2023. Its generally accepted accounting principles (GAAP) net loss was $90.1 million, with adjusted net income rising to $210.5 million. 

It also had a positive Q4 with its total revenue of $228.6 million, an increase of 12% from 2022. Its GAAP net income was $26.3 million for Q4, compared to $1.1 million for Q4 in 2022. 

CCC processed the highest number of auto claims in its company’s 43-year history, he said. 

“On a cumulative basis, over 19 million unique claims since 2018 have now been processed using a CCC AI-enabled solution,” Ramamurthy said. “And we have doubled the number of insurers using our AI-based Estimate-STP solution over the last year. AI took a large step forward across our portfolio in 2023, and we are well positioned for additional advancement in 2024.” 

Ramamurthy said CCC’s mobile AI was expanded from a consumer self-service to the field adjuster channel. The company also launched First Look, which allowed tow trucks and salvage providers to send photos. 

Impact Dynamics was launched as well, which Ramamurthy said can predict impact severity from vehicle damage photos. 

CCC also invested in its AI-enabled Subgrogration solution, he said. 

“Subrogation is the process of 1 insurer requesting payment from another insurer based on liability for a claim,” he said. “Tens of billions of dollars in claims are subrogated each year in a highly manual paper-based process, costing insurers over $2 billion per year in loss adjustment expense. 

“Customers using our solution have seen significant improvements in Subrogation recoveries and the efficiency of their Subrogation activities, and we added multiple new subrogation customers in Q4.”

CCC also launched an AI photo tool called Repair Cost Predictor in 2023, which collision repair shops can use to predict a repair cost range for customers. Mobile Jumpstart, another AI photo tool, was also introduced. Estimators use it to generate an initial estimate. 

“And since its (Mobile Jumpstart) introduction, more than 3,000 repair facilities have already used this solution with an average time to complete an initial estimate of less than two minutes versus the traditional industry average of half an hour or more,” Ramamurthy said. “These innovations are simply transformational for a capacity-constrained industry like collision repair.”

Later in the call, Ramamurthy said the Mobile Jumpstart needs some tweaking to make sure it’s in a final form. Yet, he said, it is the first major change to how a repair facility writes an estimate for a vehicle. 

Ramamurthy said the company focused on growth in its multi-sided network. He said the company added more than 1,000 collision repair customers and more than 500 parts dealers to its network in addition to expanding its relationships with several OEMs. 

“We are now approaching 30,000 repair facilities and 5,000 parts suppliers from the CCC network,” he said. “We renewed and expanded multiple insurer relationships, including a top 20 carrier that’s scheduled to roll out a full suite of auto physical damage solutions in Q2 of 2024, as well as several new casualty insurers.” 

Later in the call, Ramamurthy said repair facilities increased how many CCC solutions they use. He said a few years ago, a repair facility might use two or three of the company’s products. Currently, CCC customers tend to use four or more of their products. 

“There’s a large installed base and as we continue to deliver new solutions that really help them with their business as they have capacity issues and trying to look for more efficiencies,” he said. 

Ramamurthy said the company thinks it can reach more repair shops, and he estimates the industry has about 40,000 potential customers overall.

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