Mitchell Releases Latest Edition of Industry Trends Report - BodyShop Business

Mitchell Releases Latest Edition of Industry Trends Report

In-depth analysis focuses on the impact of aging U.S. vehicle fleet on policyholder decision-making and spending.

Mitchell International, Inc., has released the second quarter 2010 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, “Deductibles are on the Rise As Policyholders Reach Further into Their Pockets to Look for Savings,” by Mitchell’s Vice President of Industry Relations Greg Horn, delves into insurance deductible data from 2003 through 2009 for collision and comprehensive (excluding glass-only) losses. Horn’s analysis brings an eye-opening trend to light-comprehensive deductibles are rising at a 160 percent faster rate than collision deductibles. The study also shows that European nameplate vehicle owners consistently choose higher deductibles more than other nameplates origins, likely in an effort to lower their monthly premiums in a still struggling economy.

“Mitchell data shows that a growing number of consumers are opting for higher comprehensive deductibles as their vehicles age, more so than collision deductibles. Vehicle owners are more willing to absorb more of the financial impact of a potential comprehensive claim versus the risk of a possible collision claim,” said Horn. “This also falls in line with the trend identified in our previous ITR of drivers completely dropping their first-party coverage on older vehicles and causing more new vehicles to shift into insurers’ first-party coverage pool-more than was the case prior to the recession.”

Horn added, “The data definitely points to major shifts in the culture of the American driving public, with a corresponding impact on how collision repair industry participants will have to realign business practices and priorities in the future.”

The ITR’s additional feature, “Managing the Customer Experience is Key to Surviving in a Down Market and Growing in the Long-term,” by Jason Bertellotti, Mitchell’s vice president of repair solutions discusses the intricacies of managing the customer experience, which has become a strategic imperative for repairers’ survival during the prolonged market slump. Based on millions of customer surveys, AutocheX, Mitchell’s provider of customer experience management solutions, has identified important aspects of customer service that can make or break loyalty initiatives.

“When shops actively listen to their customers and understand how the key elements of the repair drive satisfaction, they can prioritize process enhancements and direct service recovery efforts to the areas that will have the biggest impact on customer retention and referrals,” said Bertellotti. “Measuring satisfaction lays the foundation, but managing the overall experience based on customer expectations is critical to build the structure for a comprehensive customer loyalty program that results in sustainable business growth for the long-term.”

Added Bertelotti, “Future issues of the Industry Trends Report will delve into more detail about the primary drivers of satisfaction and how they impact a shop’s ability to manage the customer experience to build loyalty.”

Other points of interest in the current issue of Mitchell’s ITR include:

• Q1-2010 data reflect an average gross initial collision appraisal value of $2,875-$27 less than this same period last year. Applying the indicated development factor of .17 percent suggests a final Q1-2010 average gross collision appraisal value of $2,880.

• In Q1-2010, the average gross appraisal value for comprehensive coverage estimates processed through Mitchell servers was $2,305-compared to $2,349 in Q1-2010. Applying the prescribed development factor of .04 percent for this data set produces only a slight increase in the adjusted value to $2,306-the smallest change we have recorded in comprehensive severity development.


More information:

Download a copy of the Mitchell ITR at www.mitchell.com.

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