Predictive Analytics

[Desk Jockey]

Predictive Analytics
Have you heard or read Peter Crosa’s article about where the drying industry is headed? It’s called Predictive Analytics, Insurance companies are attempting to wrangle in the cost of water damage losses.
How does it work, they have the data to say a 1000sq/ft should be X amount. They analyze 10,000 claims and compared established common denominators and have developed averages based on comparable losses.

So what can you do? Document everything you do, so you have a way of justifying why your invoice is higher than the Predictive Analytics. Also ask for the report that analyzed your loss and numbers. Review it and see if they left off something that may be in your favor.

 

[Larry Cobb]

Lets See . . .

The Insurance companies have spent lots of money to analyse 10,000 claims.

Your submitting one that is higher (with documentation).

I wish you the best of Luck, it will be a tough sell.

Larry

 

[Desk Jockey]

Agreed Larry, I don't think they will listen because I truly don't believe they care. Commercials are one thing but reality has proven to be far from the fantasy commercials show.

 

[The Great Oz]

The average price of a used car is $4,500. Let the insurance company employees buy all the rusted out minivans for $4,000 more than they're worth and I'll wait for the Aston.

An average is an average is... meaningless.

 

[MicahR]

Richard do you have a link to the article?

 

[Desk Jockey]

Micah I don't but PM me your fax and I'll fax it to you or your email and scan and email it.

 

[FredC]

Is this it Richard?

http://www.nxtbook.com/ygsreprints/RIA/g28034_ria_cr_aug2012/index.php?startid=7

 

[Desk Jockey]

Thanks Fred, pages 6-7

Ex-CIA, I forget you know all.

Oh and for the record, those stains on my underwear were there when I bought them.

 

[MicahR]

Thanks for the offer Richard! And, thanks for the link Fred!

 

[Mikey P]

Well Chavez, predict what this will do to the WD industry.

 

[randy]

Who cares what the insurance industry says or "MANDATES". Get smart and conduct your water damage like many doctors are now practicing medicine: " Sorry we don't take medicad or medicare patients". Seriously contract with the homeowner, they sign to be responsiable for paying you. Whatever insurance they have is between them and that company. This idea of begging the insurance companies to allow you to be profitable is crazy. Then again the insurance companies could mandate all water losses cost $2,000 or less and there would be more than a few dunsky operators running to sign up as prefered providers. Same guys running around cleaning Denny's at 2am for $150 a pop.

 

[roro]

I agree with Randy. We don't work for insurance companies. We advise users of our services to instruct them on who they have chosen to do the job.http://www.floorcare.co.nz/flood-recovery.html

roro

 

[SMRBAP]

Herein lies the problem with that line of thinking - their PSP's. They have a list of vendors they actively send work to - and a line of companies waiting to start getting work.

When you tell the customer there may be charges they are responsible for - and the insurer states they have a firm that will do the work at their rates - you'll lose the majority of those claims.

Erie does this from the gate in my area - other are following suit. Their line items are 30% on average, under Xactimate. As long as it's in the policy - it's not a regulatory no no.