Mitchell report examines insurance claims metrics
May 9, 2011 — Mitchell International’s latest Industry Trends Report, release_notesd Monday, shows how carefully defined metrics can produce better claims processing outcomes.
In the report, Greg Horn, Mitchell’s vice president of industry relations, examines how the industry can dig into performance data to improve the execution of repairable estimates.
“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,” Horn said. “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.”
Horn said narrowing the comparison helps create an achievable performance goal, allowing shops to focus on specific areas that need to be improved.
“Measuring metrics the right way is exacting and demanding, but worth it in terms of improved business performance and more satisfied customers,” he said.
Identifying the distribution of claims by inspection type, or appraisal channel, is also important, according to Mitchell. Other findings in the new report include:
- The initial average gross collision appraisal value for the first quarter of 2011 was $2,878, $66 less than the same time period last year. But Mitchell’s adjusted value, which includes a 2.4 percent development factor, came to $2,948. The actual cash value of vehicles appraised for collision losses during the first quarter was $13,441, $420 more than last year.
- The average gross appraisal value for comprehensive coverage estimates processed through Mitchell servers was $2,305 in the first quarter, down from $2,357. The adjusted value, based on a 3.7 percent development factor, was $2,392.
Mitchell’s Industry Trends Report, first published in April 2001, reaches more than 33,000 collision and casualty industry professionals. To view the full report, go to Mitchell.com.