Mitchell, provider of technology, connectivity and information solutions to the Property & Casualty claims and Collision Repair industries, has announced the launch of its 2013 Industry Trends Report (ITR) for the first quarter. Presenting expert insight into trends, current events in the industry and the economic outlook, the ITR leverages Mitchell’s data sets and state-by-state data from Enterprise Rent-A-Car on the repairable length of rentals. This interactive report offers a comprehensive look at data-driven trends in the Property & Casualty (P&C) industry.
The Auto Physical Damage Edition
Written by Greg Horn, vice president of industry relations at Mitchell, the feature article, "The State of Repairs: Does Repair Efficiency Vary from State to State," explores the relationship between rental length and labor hours for repairable estimates, and which body labor type has the greatest influence on rental length and overall labor hours. The significance of this is that operating efficiency does vary from state to state, and shop owners who are able to incorporate rental and estimating data into business decisions can increase efficiency.
The data from Enterprise Rent-A-Car shows that the industry’s average length of rental (LOR) decreased by 0.1 days in Q4, 2012, but in the Northeast, due to Hurricane Sandy, the average LOR was 12.4 days. Weather, climate, economics, age of vehicle and parts availability are factors in determining LOR.
"With this new information, industry resources have finally caught up to market demands," said Horn. "Thanks to the state-by-state look at the relationship between rental hours and body shop labor, repair shop owners can now take the combined data to see how they rank against the overall state average, or measure how they stack up against in-state competition."
The Auto Casualty Solutions Edition
The feature article, "Analytics in Action," written by Dr. Edward Olsen, Mitchell’s senior claims consultant, underscores the importance of data analytics in the P&C industry, especially for carriers who need to understand every aspect of the claims resolution process. Sharing insight on two projects derived from the newly announced Mitchell ClaimsLab, Olsen discusses how the Medical Severity Index (MSI) and Casualty Loss Triangle Reporting will impact the industry in 2013.
Currently, the MSI is a quarterly report based on the results of the open claims data benchmarked with Q1, 2008 results. The addition of ClaimsLab data will allow carriers to monitor performance and change procedures in a more proactive and precise manner through the MSI.
In 2013, ClaimsLab will enable Mitchell to develop a loss triangle tool that will provide a series of analytical reports to allow carriers to assess the composition of their claim losses from a unique perspective that includes a mix of provider and treatment information. A casualty loss triangle is a valuable tool for the projection of future losses and reserving, and to benchmark performance against the industry.
"We’ve heard the industry buzz about the term Big Data and data analytics, but there hasn’t been an easy way for P&C insurance carriers to receive valuable data, analyze it in meaningful ways and have it presented in a manner that is visual, compelling and easy to understand — until now," said Olsen. "Mitchell’s new ClaimsLab is the missing link and these initiatives are just two examples of how Mitchell is applying analytical expertise to help the industry gain a deeper understanding of business and outside forces. Readers of this ITR will have a greater understanding of the MSI and Casualty Loss Triangle Reporting initiatives we have in place in 2013."
To view the complete report, click here.