Motor insurance
No one can refute the importance of discussing high-profile issues such as terrorism and hurricane claims, but the reality is that up to 68 percent of every claim dollar paid by insurers goes towards auto claims, a trend that can only go up due to technical innovations and increased safety features. Given that high percentage, it is in the best interests of the auto collision and repair industry and insurers to focus on solidifying a good working relationship with each other.
The relationship between insurers and collision repair shops is an important one because they are both serving the customer, and customer service is one area where both industries strive to excel. The issues that exist between repair shop and insurer can be delicate, however, since everyone is working to improve that bottom line. At the end of the day, insurers and repair shops have to work together harmoniously if they are going to streamline the repair process for the customer — and themselves.
The Washington Metropolitan Auto Body Association recently hosted a roundtable discussion to address some of the issues between insurers and the collision repair industry. Some of the questions that the association asked insurers focused on the topics of suppressed labor rates, direct repair programs, and the relationship between insurers and repair shops. Jordan Hendler, executive director of the association, commented on the essence of the discussion.
Can Insurers and Repairers Hammer Out Their Differences?
“We are appreciative to have the insurers explain practices at a corporate level, versus hearing different things all over the nation about practices in specific areas,” she said. “It is very helpful to repairers to hear answers to their questions from someone that can speak to the corporate policy that hasn’t been handed down through five generations of management. That is the real benefit — understanding what insurers expect and in the same way explain what we expect, too.”
Labor Rates and Pricing
Suppressed labor rates is an issue that the collision repair industry sees as one of the most pressing. Fair compensation is a fragile topic in any service industry, but for repairers, it’s complicated by the wide range in how much rates can vary in a given market.
“A lot of times, a suppressed rate comes from the insurer trying to control costs,” said Hendler. “But sometimes it’s unfair to the repairer because they are not actually using rates of repairers that are not under a contractual agreement, as in a direct repair program.”
One of the challenges that associations like Hendler’s face is educating repairers on appropriate charges and common business practices. “Some repair businesses are frustrated because they recognize the difference in rates throughout the industry, and some businesses don’t know the difference and just think that this is just the nature of the business,” she said.
Source: http://www.claimsmag.com/cms/Claims/Website/Home
Now… is this practical in Malaysia?
