Mitchell Releases Latest Edition of Industry Trends Report
Defined metrics and a clear plan help achieve measurably better auto insurance claims processing outcomes, analysis shows
SAN DIEGO, CA—May 9, 2011—Mitchell International, Inc., a leading provider of technology, connectivity and information solutions to the Property & Casualty claims and Collision Repair industries, today released the second quarter 2011 edition of its Industry Trends Report (ITR)—the company's quarterly publication that highlights industry-related trends, news items and statistics.
This edition's Quarterly Feature, "Are You Measuring Your Auto Insurance Claims Metrics Properly?" by Mitchell's Vice President of Industry Relations, Greg Horn, examines how the industry can best execute repairable estimates by drilling deeply into performance data in order to obtain an achievable performance improvement goal. Horn's analysis shows how measurably better claims processing outcomes can result from a clear plan based on carefully defined metrics. By expediting the flow of information to accelerate and improve claim management performance, all participants in the auto repair process are empowered to go from good to great.
"The key to success is obtaining accurate, up-to-date benchmarks relevant to a company's unique business strengths, so that performance can be compared against the industry average. These metrics need to be granular, segregated by type, age and country of origin and the geography of the repair estimate. Only then can an accurate comparison be obtained," said Horn.
Horn added, "Narrowing the comparison creates an achievable performance improvement goal and enables the focus to be on those people, parts and processes that can be improved. Measuring metrics the right way is exacting and demanding, but worth it in terms of improved business performance and more satisfied customers."
Other insights into measuring metrics for business performance gains include identifying the distribution of the claims by inspection type (or appraisal channel) in order to ensure the data is as close as possible for comparison. For example, in the case of lower dollar estimates, removing these from the comparison data set alters the overall average paid severity and also reduces repair vs. replace, paint hours metrics and part use when comparing estimates to appraisal channels that routinely see smaller claims amounts. Accuracy of data, and identification of which data matters, is key to measuring metrics properly, and at the heart of any performance improvement initiative.
Other valuable points of interest in the current issue of Mitchell's ITR include:
- Mitchell's Q1-2011 data reflect an initial average gross Collision appraisal value of $2,878—$66 less than this same period last year. However, by applying the indicated development factor of 2.4%, suggests a final Q1-2011 average gross collision appraisal value of $2,948. The average Actual Cash Value (ACV) of vehicles appraised for Collision losses during Q1-2011 was $13,441—an increase of $420 over the same period last year.
- In Q1-2011, the average gross appraisal value for Comprehensive coverage estimates processed through Mitchell servers was $2,305—compared to $2,357 in Q1-2010. Applying the prescribed development factor of 3.7% for this data set produces only an increase in the adjusted value to $2,392—reflecting the seasonality of comprehensive claims.
Complete content is available in the latest Industry Trends Report, which may be downloaded in PDF format by visiting www.mitchell.com. First published in April 2001, Mitchell's Trends Report has grown in both content and circulation, now reaching more than 33,000 collision and casualty industry professionals.
About Mitchell International, Inc.
Mitchell International, Inc. empowers clients to achieve measurably better outcomes. Providing unparalleled breadth of technology, connectivity and information solutions to the Property & Casualty claims and Collision Repair industries, Mitchell is uniquely able to simplify and accelerate the claims management and collision repair processes.
As a leading provider of Property & Casualty claims technology solutions, Mitchell processes over 50 million transactions annually for over 300 insurance companies/claims payers and over 30,000 collision repair facilities throughout North America. Founded in 1946, Mitchell is headquartered in San Diego, California, and has 1,700 employees. The company is privately owned primarily by the Aurora Capital Group, a Los Angeles-based investment group. For more information about Mitchell, visit www.mitchell.com.
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