Highlights from CCC's February 2018 Industry Trends
Feb. 14, 2018—It has been suggested that the world today is experiencing the Fourth Industrial Revolution, as technologies such as mobile digitalization, artificial intelligence, automation, the internet of things, machine learning, voice recognition and others have begun to merge the physical and digital worlds, reported CCC Information Services director and analyst Susanna Gotsch in this month's update.
Advanced driver assistance systems (ADAS) are making traction and the industry is beginning to examine what this means for auto sales, auto care, auto repair and auto replacement.
The 2017 Crash Course examined market dynamics through an automotive market claim. 2018 will examine through the lens of a full auto ownership life cycle, from auto shopping to purchase to vehicle end of life.
Despite increasingly intelligent vehicles, the next few years will “continue to see conditions suggesting strong demand for both the auto insurance and collision repair industries,” Gotsch said on the January installment of CCC’s monthly “Industry Trends” videos.
Trends fueling the frequency include increased miles driven and congestion, low gas prices, and high employment, Gotsch said.
Severity contributors on non-comprehensive claims include increased parts per repair and labor hours, as well as higher prices for parts and hourly labor rates.
All of these statistics rose in the year ending Sept. 30, 2017, with the exception of average labor hours, which held steady at 23.6 hours, according to CCC.
The average cost of repairing non-comprehensive claims rose 1.8 percent year-over-year, according to CCC. The average repair in the year ending Sept. 30 came in at $2,870, up from $2,546 in 2012.