For all of ads on T.V. regarding auto insurance, it appears only 2% of the time an insurer quotes and signs up those shopping for auto insurance.
*****************
Monthly Archives: September 2008
Now Allstate changes policy on Full-Body sectioning…..
Just as we noted awhile back with State Farm, Allstate announced today that the company is changing their policy on full body sectioning for auto damage estimates. The procedure will no longer be practiced due to the changing vehicle materials and construction methods of today’s autos. This is now the second major insurer to come forth with this publicized policy.
***********
DRP’s ….. Are They Really Worth It?
Many insurers in an effort to save money institute some form of Direct Repair program. Recent research shows that nearly 46% of all auto body shops participate in these programs to some degree. Even with the best intentions, some claims executives feel DRP’s fall short in what they are intended to accomplish due to lack of oversight. They feel a staff or independent appraiser should place a set of eyes on each vehicle and negotiate the most cost effective repair. Allowing a repair facility to control the repair process even with stringent guidelines imposed by a carrier, Some feel it leaves door open for excessive repair times and overpayments.
Our new poll is to determine how insurance professionals feel about the DRP issue.
AIG In A Race To Raise Cash…Looks To Sell Auto Insurance Business??
AIG, the largest insurer in the United Stats has been caught in the financial crisis hitting so many large organizations exposed to the subprime mortgage crisis. The company will be restructuring their operations monday according to an article from CNNMoney. The Wall Street Journal indicated they may sell their U.S. auto insurance business.
***********
CNN Money Link.
***********
Tow Yard And Storage Cost Study.
In a random study of 1000 processed auto claims, it was determined that 27.4% of all total losses indicate the damaged vehicle was taken to a tow yard facility. From the date of loss to the final removal of the salvage took on average, 15 days. The average storage bill ended up being nearly $600 dollars.
These numbers can provide some basic insight into total loss handling.
1. 27.4% of all vehicles deemed a total loss are at a tow yard facility once an auto damage appraisal is requested.
2. Each total loss at a tow yard is adding on average, $600.00 per file in expenses to the insurer. Those processing thousands of claims per year face millions of dollars in expenses that could be reduced through proactive file handling.
3. It takes nearly 4 days for an insurance adjuster from the date of loss to set up a claim and dispatch to an appraiser for an inspection. Some of these delays are due to weekends or failure of the vehicle owner to report the loss in a timely manner. These delays cannot be avoided, but the additional 11 days of average time to salvage removal are prime opportunities for great savings.
**********************
This focused study brings to the forefront that if insurers and auto damage appraisers can work together to quickly identify and respond swiftly to vehicles located in tow/storage facilities, considerable costs can be reduced in loss expenditures.
Data source: © 2008, AutoClaims Direct, DirectLink
Insurers prepared for big losses from Hurricane Ike.
Insurance carriers face losses in the range of $5 billion to $20 billion from hurricane Ike, with most being personal losses to homes and autos. Most carriers and independent adjusting and appraising firms have CAT teams ready to go in once the evacuations have been lifted and conditions allow.
****************
U.S. Appeals Court Ruling Requires NHTSA To Release Auto Safety Data.
A consumer group won in the U.S. appeals court forcing the NHTSA to release early-warning information provided by auto makers since 2003.
*********
*********
North Carolina Insurance Commissioner orders auto rate reduction.
While the insurers in North Carolina were hoping to increase auto insurance rates, the insurance commissioner ordered a 16.1% reduction.
******
CAPA Advises Insurers, Shops and Consumers To Look For CAPA Seal.
The Certified Automotive Parts Association (CAPA) released a statement yesterday reminding the insurance industry along with repairers that if a part does not have a CAPA seal, it is not CAPA certified.
********
Mazda Develops Plastic Molding Technology Which Reduces Consumption of Plastic Resins by 30 Percent
As part of its efforts to reduce vehicle weight, Mazda Motor Corporation has developed a new plastic molding technology that enables a substantial reduction in the weight of plastic parts used in vehicles. This plastic molding manufacturing technique cuts the consumption of plastic resins that are used as raw material by approximately 20 to 30 percent, with associated reductions in vehicle weight.
The most common manufacturing method for producing automobile plastic parts is injection molding. Mazda’s improved injection molding process involves mixing supercritical fluid*1 (SCF), made from common inert gases such as nitrogen or carbon dioxide, with the plastic resin raw material. The process utilizes a particular characteristic of SCF to mix readily with other substances at the molecular level to raise the fluidity of the liquid plastic resin and cause it to expand rapidly when injected into a mold. As a result, smaller amounts of the raw material resin are needed to fill molds.
Furthermore, by using a “core back expansion molding process*2″ – which enables thicker parts to be manufactured using less plastic raw material – Mazda has successfully developed plastic with a multi-layer structure. The bubbles in the outer layer of the plastic are kept microscopic to ensure each part has the necessary strength and rigidity, while the size of the bubbles in the core layer can be freely adjusted to reduce its density as desired.
With this proprietary technology, substantially less material is needed to manufacture plastic parts that are lighter and have equal or greater strength and rigidity characteristics compared to conventional, non-foamed parts.
This plastic foam molding technology can potentially be applied to nearly all plastic parts used in vehicles. Because the core back molding process enables control of the foam’s structure, it is possible to add extra value by enhancing the heat insulation and acoustic characteristics of plastic parts.
Conventional plastic foaming methods use a gas formed through the thermal decomposition of organic and inorganic compounds. However, through the use of SCFs, Mazda’s foamed resin molding technology does not result in adverse effects from residual chemical compounds, has a smaller impact on the environment, and produces parts that can be easily recycled.
*1 A supercritical fluid is any substance at a temperature and pressure above its thermodynamic critical point. It can diffuse through solids like a gas, and dissolve materials like a liquid.
Compared to their natural gaseous forms, nitrogen and carbon dioxide, as supercritical fluids, increase the solubility of plastic resin and enable it to form foam with a standardized micro-cell structure.
*2 ‘Core back’ expansion molding is a form of injection molding. Once the foamed resin has filled up the mold, the volume of the mold is increased, causing the foam to expand. This means larger plastic parts, with low density and good rigidity, can be made from the same volume of plastic resin.
please visit the following link for futher details http://www.media.mazda.com/