New programmable DRP-specific estimating system automatically flags issues of concern to carriers

If you participate in several direct repair programs (DRPs), most likely you’re acutely aware that each carrier has differing requirements or KPIs – key performance indicators – that must be met to ensure payment. And to help ameliorate some of the confusion when complying with each company’s standards, a newly upgraded programmable estimating system aims to reduce supplementals and disputes with insurers by catching appraisal anomalies prior to a vehicle entering the bay.

“It brings your attention to certain lines on the estimate,” explains Vern David, manager at Central Body Works in Bakersfield, Calif. “It gives us a gentle reminder from the get-go instead of getting a reminder from the insurance company.”

Central has been previewing the recently released Accumark Advisor version 1.1 from CCC Information Services, Inc. The shop gives the system high marks for its performance capabilities.

“It can make our operation more efficient,” says David.

“It’s a tool for us to help meet the key performance indicators of the different insurance companies because I’m able to run these rules and address things right from the start – it’s literally just a couple of mouse clicks,” he adds.

“We manage multiple DRP relationships, each of which has specific guidelines for us to follow and different KPIs for us to meet,” he reports. “We can double-check estimates before we send them to the carrier, enabling us to write more-complete estimates and reduce the number of estimates requiring supplements. This saves us valuable time and resources.”

Wasted production efforts, distractions and possible unpleasantness are greatly reduced when an estimate at odds with a carrier’s requirements is detected early in the process, he says.

“You can address that up front and avoid that phone call or email,” he points out. “The insurers have plenty of people to send emails, but body shops don’t have time to play the email game, so I can head them off at the pass.”

As an example, David cites a fender repair and the choice of affixing an OEM, aftermarket or used replacement. “We run that (through the program) before we do the lock and estimate.” The system will flag the procedure if the insurer’s KPI guidelines specify a non-OEM product. “It gives us an opportunity to look for an alternative part.”

Central is thus in position to justify installation of an OEM fender if, say, a salvage piece is not available within an allotted timeframe or an aftermarket version fails to meet CAPA (Certified Automotive Parts Association) standards.

“They know (that the shop dutifully sought a non-OEM component) because you put it in your notes – you didn’t forget,” David explains.

“I fix the cars the way the insurance company wants it done,” he continues. “I may get beat up on this (among industry colleagues), but KPI benefits all of us:

• It makes us more profitable because we’re going to stay on their programs.
• They’re more profitable because it keeps the cost of their claims down.
• I’m more profitable because it keeps work coming through the door.”

The system also allows you to obtain proper payment, says David, as it challenges, “Why did you choose this particular part, and did you miss any procedures that you should be getting paid for?”

‘Like a spell-check’

“This is designed to help both the carriers and repairers with one tool,” notes Debbie Day, CCC’s senior vice president of marketing and product management. “It’s a real-world program based on actual DRPs.”

When both parties are on the same page, the entire collision repair process is made more efficient, she says. “Body shop owners have been instrumental in the development of this capability; we’ve seen a challenge and we’ve designed a solution.”

Day goes on to point out how “increasing vehicle complexity and varying insurer-specific guidelines have made estimate writing more complicated. You can put ‘stickies’ up (by your computer) to remind you on what the standards are, but this does it automatically. It’s like a spell-check.”

Version 1.1 of the Accumark Advisor includes some 70 new “rules” in addition to the 115 rules available in the original version of the product, which is an integrated feature of the company’s Pathways Estimating Solution.

Accumark Advisor is accessible by clicking on the “audit” button within the estimate. Estimates are automatically reviewed against each DRP insurer’s established guidelines, which the body shop enters into the system.

The process is not overly complicated, according to Day. “We did not want to be heavy on the programming,” she explains, “the guys are more interested in fixing cars” than sitting at a computer.

“We offer a series of reports now,” she says. “It has the ability to pick rules and it adds ‘trend capability.’ We show the ‘before’ and ‘after’ in a report so people can see the mistakes they have made” during the estimating process.

In 2006, more than half of the estimates sent through CCC required a supplement, and each contained an average of more than two missed items, says Day. The upgraded system “will deliver efficiencies throughout the repair and settlement process. Appraisal sources now have improved capability to write more-complete estimates the first time, helping to reduce the number of supplements required: The carriers and repair facilities both wanted the same thing.”

For more information, visit www.cccis.com.