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Measuring auto physical damage estimating performance by benchmarking key performance indicators (KPI) has been in place since the advent of electronic estimating. Unfortunately, so too have misunderstood metrics and efforts by appraisers to ‘game’ the numbers. This seems especially true when it comes to measuring auto parts performance.

The ‘industry standard’ metric of measuring the percentage of parts dollars spent by part type has been used by many insurers as the sole way of judging this performance for years, despite having an inherent flaw. Anytime you measure the percentage of something, you have to watch not only the numerator of your equation, but also the denominator. 

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