CCC Intelligent Solutions (CCC) Morgan Stanley Technology, Media & Telecom Conference summary

Business overview and market position

• Operates a SaaS platform connecting insurers, repair facilities, and parts suppliers, primarily in U.S. auto claims.

• Network includes 300 insurers, 30,000 repair shops, and 5,000 parts suppliers.

• Expanded into disability and workers' comp claims with the EvolutionIQ acquisition.

• Generates about $1 billion in revenue with 40% margins and strong gross dollar retention (98-99%).

• Addresses a $35B global TAM, with $7B currently covered by existing products.

Revenue model and claims trends

• Over 80% of revenue is subscription-based; 20% is transactional or volume-based.

• Claims frequency in 2024 was down about 5%, creating a minor headwind.

• 2025 outlook assumes neutral claims frequency compared to 2024.

• Claims pressure in 2024 attributed to economic factors, not long-term trends.

• Higher auto premiums and increased deductibles have led to fewer small claims being filed.

Industry trends and technology adoption

• Macro trends: declining frequency, rising severity, and increasing repair complexity due to ADAS and technology.

• Solutions address complexity through electronic parts ordering, repair methods, and AI-driven claims management.

• AI is embedded in workflows, leveraging a large, hyper-local data set for accuracy and efficiency.