Nah, insurers wouldn't lowball estimates, would they?

Of course, if they aren't lowballing them, then the only other, completely inescapable, conclusion must be that they are totally incompetent at writing estimates.

I mean, if it isn't intentional, looking at the data, then they obviously don't have a clue what they are doing when they determine fair and reasonable rates 'er, excuse me, I meant to say settlements.

Gotta be that those 700+ jobs followed from crash to repair completion MUST be a bad sampling of actual repairs. Had to be 700 adjusters, with 700 different laptop computers, with 700 different estimating system insurer parameters, all having a bad day, 700 times.

http://www.princetonautobody.com/Docs/PDF/FraudReport.pdf

Hal, care to comment on that effective and repairer-liked collision program you have, where you are able to "factor body shop rates"? Not to insinuate that any of your company's estimates were the ones CIC examined.....

Now, the real kicker here is this: If this is accurate across the board, and the insurer estimates are deficient by 50% ON AVERAGE, then what does this say about what we are told, BY insurers, I remind you, of 'fair and reasonable' rates? (Anybody recall the Minnesota DOC survey that showed that insurer "fair and reasonable" rates were just a 'tad' bit different than the actual market? What if the end billing to the insurer isn't what we are being told it is?)

Oh,the tangled web we weave........

AND L.W., don't miss the reference in this release to the lost sales tax dollars. Seems you aren't the only one that noted that interesting little tidbit that might amount to a significant chunk of change that insurers don't have to pay anymore.

Everybody have a great weekend...FOOTBALL SOON!

It seems somebody wants this report by CIC's Anti Fraud Committee buried....interesing!

FOR IMMEDIATE RELEASE

Coalition for Collision Repair Excellence (theCCRE) Condemns Silencing of Study That Finds Insurers Defraud Consumers and States, Placing Motorists at Risk

In a press conference scheduled for October 31, 2006, the Anti-Fraud Committee of the Collision Industry Conference (CIC) was to release the findings of their study which concludes that insurers cheat consumers and states out of millions of dollars by systematically underwriting insurance estimates.

After months of good work collecting and reviewing hundreds of estimates from various insurers in 10 states, the Anti-Fraud Committee was prepared to expose the routine practice of insurer underwriting of estimates by over 100%, thus resulting in thousands of less-than-adequately repaired vehicles being returned to our highways. However, insurance-related forces within the CIC itself put a stop to the release of this vital information that could have benefited consumers, states, and collision repairers, and would have brought scrutiny to the manner in which insurers control the collision repair process, potentially putting consumers’ lives in danger.

The Coalition for Collision Repair Excellence (CCRE) publicly condemns this deliberate suppression of evidence concerning fraud – or at best, gross ineptitude – on the part of insurance companies, and demands that they immediately stop this practice. The CCRE also calls on state officials to investigate the practice of insurers’ systematic underwriting of estimates, which was substantiated by the findings of the CIC Anti-Fraud Committee, and establish whether certain consumers are driving unsafely repaired vehicles because of this insurer practice.

“In many states, it is a crime to allow an unsafe vehicle back out on the highways,” said Erica L. Eversman, J.D., Chief Counsel for Vehicle Information Services, Inc. “I expect to see states take action on the Anti-Fraud Committee findings. People’s lives are at risk, and that should be every state’s primary concern.”

“Insurers have no business in the collision repair business,” states Tony Lombardozzi, President of the CCRE. “Collision repair is a profession that takes knowledge, skill, and integrity. At the CCRE, we expect every one of our members to follow a code of professional conduct that requires each member to deliver a safe, proper repair as requested by the vehicle owner, not some slipshod repair as is often dictated by insurers.”

Mr. Lombardozzi continues, “The CCRE is a peer network for collision repairers, and does not allow insurers to join their ranks or otherwise influence their decisions. The suppression of the CIC Anti-Fraud Committee findings is an unfortunate example of how once well-intentioned organizations often become influenced, corrupted and controlled by those with competing interests. For this reason membership in the CCRE is open only to repairers.”

Mark1

Who put a stop to the release?

well i would say those estimates having mistakes are a result of modern math. schools just ain't what they used to be, although i wonder how those math errors seem to be favoring the same side every time.

hmmm,
gee almost wonder if that modern math kind of shows a pattern starting to develop? now i am wondering if the same spreadsheet used to process numbers for claims are also under-reporting profits?

lol. Another Enron scandal?

Why would they do that? Then they have to send another estimator back out. I know several insurance adjusters, they are not rocket sceintist but there not idiots..

NuttyGlassGUy, you asked why they do this. Here's a pretty good answer.

http://www.autobodyonline.com/showstory.cfm?id=8115

OMG, I don't know who put a stop to it, but I'll bet others are 'wondering' also.

Here's a link to the CIC Anti-fraud, now called the Ethics committee, page.

Seems to me that the release is perfectly in-line with the CIC, and the Ethics committee's mission statements, both.

Sure makes you wonder, now dosen't it? lol

I did note there are no insurers on the Ethics committee.

http://www.ciclink.com/fraudcom.html

According to the autobodyonline forum some guy named Rick Tuuri stopped the release.

Rick Tuuri
Director, Business Development I-Car
San Francisco

accidently, i just happened to look at the board of directors of ICar, doesn't seem to be a conflict of interest there. i can only count four insurance companies that have representatives on that board. i'm sure they would be as anxious as anybody to know that estimates have a few mathematical errors.

i am curious to know though, and don't have the patience to read myself; what is the connection between CIC and ICar? If these bodies are independent of each other how can one put a stop to the others news releases?