In our recent IMPACT Collision Solutions articles, we discussed important factors that underlie the insurance business (Underwriting Losses, Loss Adjusting Expense, and Overhead) as well as three critical KPI’s that affect the performance of both insurers and collision centers (CSI, Severity, and Cycle Time).  This month, we will explore a topic that is emerging in the relationship between collision centers, insurers, and vehicle owners.  That is Photo Estimating and Artificial Intelligence (AI).  Insurance companies and their database providers, such as CCC, are relying more often on photos taken by claimants and processed by artificial intelligence software to “predict” likely damage based on millions of prior crashes.  This concerns repairers as they perceive another loss of control of the customer relationship and the appraisal process.  We will attempt to explain the motivation of insurers and the effects of this technology on vehicle owners and repairers.

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