Canadian Appraisal Severity
Editor's Note
At the request of our customers and friends in Canada, we are pleased to provide the following Canada-specific statistics, observations, and trends. All dollar-figures appearing in this section are in CDN$. This data is the product of upload activity from body shops, independent appraisers, and insurance personnel, more accurately depicting insurance-paid loss activity, rather than consumer direct or retail market pricing.
Average Appraisal Values Severity Overall
The average gross initial appraisal value, calculated by combining data from all first and third party repairable vehicle appraisals uploaded through Mitchell Canadian systems in Q1 2017, was $3,910鈥攁 $139 increase from Q1 2016. Factoring for development yields an anticipated increase to $3,963.
Collision Losses
The average initial gross collision appraisal value uploaded through Mitchell Canadian systems in Q1 2017 was $3,918, a $128 increase from Q1 2016. Factoring for development yields an anticipated increase to $3,958, which represents a $168 increase from Q1 2016.
About Mitchell in Canada...
For more than 20 years, Mitchell鈥檚 dedicated Canadian operations have focused specifically and entirely on the unique needs of collision repairers and insurers operating in the Canadian marketplace. Our Canadian team is known for making itself readily available, for being flexible in its approach to improving claims and repair processes, and for its 鈥榮econd to none鈥 commitment to customer support. Headquartered in Toronto, with offices across Canada, Mitchell Canada delivers state- of-the-art, multi-lingual collision estimating and claims workflow solutions (including hardware, networks, training, and more), world-class service, and localized support.
Canadian Average Appraisal Make-Up
This chart compares the average appraisal make up as a percentage of dollars. These data points reflect an increase in parts, with slight decreases in labour and paint.
Comprehensive Losses
In Q1 2017, the average initial gross Canadian appraisal value for comprehensive coverage estimates processed through our servers was $3,895, which represents an increase of $322 compared to Q1 2016. Factoring for development, the anticipated final average appraisal value will be $3,986.
Third-Party Property Damage
In Q1 2017, our Canadian industry initial average gross third-party property damage appraisal was $4,475, which represents an increase of $943 from Q1 2016. Factoring for development, we anticipate a final value of $4,545.
Canadian Supplements
In Q1 2017, 49.23% of all original estimates prepared by Mitchell-equipped Canadian estimators were supplemented one or more times. In this same period, the pure supplement frequency (supplements to estimates) was 79.12%. The average combined supplement variance for this quarter was $921.33, $100.01 higher than in Q1 2016.
Canadian Adjustments
In Q1 2017, the average frequency of betterment taken on estimates decreased by 12%, while the dollar amount of that betterment increased by 20%. Appearance allowances were also down, although the dollar amount of those allowances increased by 17% when compared to Q1 2016.
Canadian Labour Analysis
This data reflects the percentage of labour dollars utilized in the creation of Mitchell appraisals by Canadian estimators.
Canadian Paint and Materials
For Q1 2017, Paint and Materials made up 8.16% of our average appraisal value. Represented differently, the average paint and materials hourly rate rose to $36.71 per hour.
Canadian Number of Parts by Part Type
Canadian Parts Utilization
All data reflects the percentage of part-type dollars utilized in the construction of Mitchell appraisals by Canadian estimators.
Original Equipment Manufacturer (OEM) Parts Use in Dollars
In Q1 2017, OEM parts use increased compared to Q1 2016.
Aftermarket Parts Use in Dollars
Aftermarket parts use in Q1 2017 decreased slightly compared to the same period last year, coming in at 15.41%.
Remanufactured Parts Use in Dollars
Remanufactured parts use in Canada dropped to 1.21% for Q1 2017, which represents the lowest percentage of part dollars in the charted quarters.
Recycled Parts Use in Dollars
In Q1 2017, recycled parts use in Canada decreased compared to Q1 2016 results.
