This round of financing is the first time for the Chinese subsidiary to introduce domestic investors.
Car accident. Image credit: Kévin Langlais/Unsplash
On March 30, CCC Information Services China announced (in Chinese) the completion of its Series A round of financing led by Hillhouse Capital, raising hundreds of millions of yuan.
Established in 2010, the company is the Chinese branch of the American CCC Information Services headquartered in Chicago. It is an insurtech provider, which offers software solutions, analytical tools, and comprehensive data that focus on integrated claims management, collision repair, and insurance estimating services.
The Chinese vehicle industry market differs considerably from that of the US. For example, the Chinese auto market is filled with a variety of brands, and the local people do not hold a general strong preference towards a specific brand.
Apart from this, the structure of the entire ecosystem – including regulatory policies, business cycles, and business habits among the players in the value chain is also quite different from other mature markets.
Therefore, even though CCC Information Services has decades of accumulation in databases of accident vehicle, historical images and the corresponding claims; it still took the Chinese arm ten years to fully localize their business – from operations and maintenance as well as R&D of products to analytics and management consulting capabilities.
Targeting the domestics insurance companies, CCC Information Services China launched the Auto Physical Damage (APD) in-production AI solution, to provide the incumbents with an efficient solution for vehicle collision estimation and risk control.
On the other hand, targeting the upstream and downstream players – for example, for those in the auto repair and spare parts supply – CCC Information Services China introduced its Direct Repair Program (DRP) Solutions that connect their shops to its network of insurance carriers. It aims at helping players in the value chain to facilitate collaboration efficiency.
The Chinese subsidiary of the insurtech firm mainly serves medium and large-sized insurance companies – where its solutions can save the big players billions of yuan per year. Among its clientele are mid-to-downstream service providers such as large auto dealer groups and maintenance chain stores.
The General Manager of CCC Information Services China, Hou Ke, in an interview (in Chinese) with 36Kr, said the firm now handles more than 100,000 accident vehicles per working day, and issues more than two million loss assessment and maintenance proposals every month.
Here are some firms whose businesses lie in a somewhat similar area to that of CCC Information Services: AudaExplore – a global claims solutions provider serving the automotive industry based in California – Nexsyis Collision, Indiana-based comprehensive management software provider for auto body repair, and OK Car Insurance – a Chinese third-party service provider that helps consumers buy auto insurance online and insurers improve risk profile and generate more profits – it concentrates more on the ‘To Customer (2C)’ side though.