Audit of on-file mileage estimates finds net increaseBy Visualize Editor | January 1, 2014
Postaudit annual mileage estimates were greater than on-file estimates — an 18 percent net increase in annual mileage from our sample set
The graph below illustrates the differences in pre- and postaudit annual mileage for Verisk Underwriting clients in 2013. We used Verisk’s annual mileage calculator to conduct the analysis. In 1,000-mile increments, the blue bars represent the percentage of vehicles associated with a given mileage band before Verisk conducted an audit of the affected policyholders. The red bars represent the percentages after Verisk completed its audit process using the modeled annual mileage from its mileage calculator as the starting point in the conversation with the policyholder. In our analysis, we derived the final mileage from those policies and vehicles where we’ve had two-way contact with policyholders and they’ve signed off on a final annual mileage figure.
Verisk conducted the analysis on policies and vehicles coming up for renewal. We derived the initial annual mileage for a given vehicle from the miles contained in data files provided to us in advance of the renewal. We aggregated data files throughout 2013 from a number of insurance companies for the analysis.
Tagged with: , , ,