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Greg Horn gets to the root of the common phrase, “Cars cost more to repair than they used to,” by analyzing repair cost inflation rates as reflected by total loss frequency, rising insurance rates and repair order costs.
Mitchell has released its Industry Trends Report (ITR) for the first quarter of 2016.
In this edition, experts discuss the inflation rate driving car repair prices and the industry-wide success of ICD-10 implementation.
The Auto Physical Damage Edition
Getting to the root of the common phrase that “Cars cost more to repair than they used to,” Greg Horn, vice president of Industry Relations at Mitchell, analyzes repair cost inflation rates as reflected by total loss frequency, rising insurance rates and repair order costs. Comparing two popular passenger cars, the 2010 and 2015 Toyota Camry and the 2010 and 2015 Chevrolet Malibu, and taking the Consumer Price index rate into account, Horn discovered a few surprising data points driving the inflation rate.
For example, inflation adjusted over repair severity increased at more than double the rate for the Malibu, despite the number of labor hours staying the same. Horn further explains that while the improved parts and technology result in better outcomes and safer vehicles, they come at a significant cost.
Horn will provide a deeper look into the findings, information and trends highlighted in this quarter’s ITR during Mitchell’s webinar, “Industry Trends Live,” on Feb. 23rd. To sign up for the webinar, visit go.mitchell.com/register.
The Casualty Edition
The Property & Casualty (P&C) industry underwent a large change on October 1, 2015 with the official implementation of ICD-10 codes. To better understand the value and effectiveness of the ICD-10 codes, Michele Hibbert-Iacobacci, CCSP, CMCO, vice president of Information Management & Support at Mitchell and the Mitchell team identified Key Performance Indicators (KPIs) that the P&C industry can map back to.
In this edition, the Mitchell-identified KPIs are discussed to highlight adoption statistics and the areas where ICD-10 can address issues in medical bill review applications that insurers currently rely on for objective review. The key areas monitored included adjustment/denials, duplicate bills, claim open timeframe, severity and case mix changes.
The complete report is available at www.mitchell.com/industry-trends-report.