Our Pricing vs Insurance Pricing
When providing estimates - people often want to know how we come-up with the price for the restoration services we provide. We utilize Xactware to determine our pricing for the restoration services we provide. Xactware is an independent, third-party company that researches and reports on industry pricing. Currently, 21 of the top 25 property insurance companies in the U.S. and 10 of the top 10 Canadian insurers use Xactware property insurance claims tools
Xactware uses pricing information from general contractors, subcontractors, insurance carriers, insurance adjusters, and a host of other industry professionals as we research and report on the average market price for each price-list item. Xactware goes to great lengths to ensure that no one party or industry segment has any undue influence on the pricing data that we research and report on.
In order to provide the most accurate and defensible pricing information available, Xactware takes a unique, scientific approach to researching and reporting on market pricing for the insurance repair industry. This approach is based on a proven five-phased, iterative process.
- Phase 1: Conduct market pricing research.
- Xactware currently researches and analyzes millions of market price points each year from multiple, third-party sources. These include:
- Thousands of in-field estimates that are submitted to Xactware every day (i.e. estimates actually used to settle claims)
- Market surveys of industry professionals
- Retail pricing research
- Unit-price research based on surveys with over 100,000 contractors, insurance carriers, and independent adjusters
- Pricing feedback from in-field users
- Independent pricing verification requests
- Customer-specific cost data
- Catastrophe-specific pricing research
- Additional research surveys
- Multiple third-party sources for data such as worker’s comp, federal taxes, state taxes, local taxes, and so on
- Many other research initiatives
- Phase 2: Review and verify all the market research gathered; conduct data integrity checks.
- Phase 3: Analyze all the pricing research and perform a proprietary cluster analysis on various subsets of that research to identify the mid-range market price points. This proprietary process was designed by Brigham Young University Ph.D.’s and is monitored by an econometrician. (An econometrician holds a master’s degree in statistics and a doctorate in economics.)
- Phase 4: Report on and publish market pricing research results.
- Phase 5: Evaluate and refine our pricing research and reporting methodology.
For example, the building cost data used in Xactware’s products comes from:
- Time and materials costs
- Over 40,000 providers of materials, equipment and labor
- Over 84,000 surveys each year*
- Analysis of actual damage repair estimates (transaction-based research)
- Over 3 million estimates each year*
- Over 6 million data points each month*
- Direct surveys of construction market costs
- New construction/remodeling
- General contracts and sub-contractors
- Approximately 2,000 surveys each month*
For more details - visit http://www.xactware.com/en-us/resources/pricing-data-services/methodology/