Mitchell International, Inc., has released the first quarter 2010 edition of its U.S. Industry Trends Report (ITR).
This edition’s Quarterly Feature, “Do You Really Know Where Total Losses Are Trending?,” by Mitchell’s vice president of industry relations, Greg Horn, details Mitchell’s in-depth examination surrounding the trend of declining total loss claims—a phenomenon occurring despite a severe U.S. economic slowdown that has seen approximately six million fewer cars and trucks sold in 2009 than in previous years.
Horn’s examination of Mitchell’s multiyear claims data breaks down the results and explains that the pool of older vehicles carrying first-party coverage is shrinking. Older vehicles in North America today are increasingly under-insured or not insured at all as cash-strapped drivers reduce or drop their coverage. Therefore, no total loss claim is made by the owners of these vehicles in the event of a collision.
The ITR’s second feature, “Technology to the Rescue: Use Innovation to Help Speed Report of Losses,” also by Greg Horn, discusses how insurers can use technology to improve the time from date of loss to date of report. Horn describes why the most significant obstacle to speedy claims resolution is often the claimant’s delayed response in reporting an accident to the insurer, likely due to lack of experience with the claims process. He points out that if policyholders know that technology such as cell phone applications and online tools that give them visibility into the claims process and keep them informed and up-to-date are available, they may have a less daunting view of the process and be inclined to take action more quickly.
The Industry Trends Report can be downloaded in PDF format by visiting www.mitchell.com.