Insurance Insider (27)
The "Insurance Insider" is a corporate-level executive with a Top 10 auto insurer in the U.S.. Although he needs to remain anonymous, he will answer questions emailed to him in future columns. Got a comment or question you’d like to see him address? Email him at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Shops Should Be Able to Offer Whatever Discounts They Want
Written by InsiderTo view a pdf file of this article with photos, click HERE.
There is enough controversy in the industry today to write three or four different stories on the hot topics. I will not contribute to the proliferation of propaganda and conspiracy theories by discussing parts or insurance company direct repair programs. I have another controversy for shops to rally around.
Due to my executive position and the company I am employed by, I have not been able to share my views publicly or within the confines of my corporation. Don’t feel bad for me. That’s why I write these articles. I can share my thoughts and experience without placing my job in jeopardy. I can only imagine what would happen if I decided to challenge “The Institution” and talk about what is widely considered heresy amongst insurance executives.
Shops’ Inefficiencies Are Legitimate Concerns for Insurers
Written by Insurance InsiderTo view a pdf file of this article with photos, click HERE.
I wrote an article a few months ago focusing on inefficiency within body shops. That is, inefficiencies that are most commonly associated with the repair process. If it takes you seven days to repair a vehicle and the shop down the street could have done it in five days, you’ve just cost everyone money.
I recognize that all shops shouldn’t be painted with the same broad brush, but in my view, if you’re inefficient you’re guilty by association. Because of inefficiencies, insurers unnecessarily spend money every day that could have been used to lower premiums or offset the impact of a rate increase. Yes, most insurance companies are profitable, but it’s not as a result of all the great deeds and service provided by body shops.
Consolidation Allows Insurers to ‘Dance with the Devil They Know’
Written by Insurance InsiderTo view a pdf file of this article with photos, click HERE.
The industry has been inundated with news about consolidators buying new locations and expanding into markets where they have not traditionally had a presence. To be honest, it’s happening at such a rapid pace that most of us in the insurance industry were caught off guard. In an economy that has struggled, the last thing we expected was capital investment firms plunking down large sums of money to purchase consolidators and then provide capital for aggressive growth. Existing large consolidators investing their own money to buy additional locations was even more surprising to insurers.
To view a pdf file of this article with photos, click HERE.
Training…What is it good for? Absolutely nothing. Say it again.
Hopefully, you were able to sing along to the modified lyrics to the song “War,” a hit performed by Edwin Starr. If you aren’t familiar with it, it is a famous song protesting war. And that probably also means that you were born in a different generation where war and protests are things you’ve only read about.
Speaking of protests, there was an informal one staged by collision repairers a few years ago. Leaders in the industry were dissatisfied with I-CAR’s direction and the level of service I-CAR provided. The training I-CAR offered was deemed outdated and to some degree was becoming more irrelevant by the day.
I-CAR listened and took action, making significant change to its training curriculum, structure and delivery methods. This led to additional, much needed changes in the requirements to attain I-CAR Gold and Platinum status.
Not All Insurance Executives Are Created Equal
Written by Insurance InsiderTo view a pdf file of this article with photos, click HERE.
Being an insurance executive has its pros and cons. I guess it’s not really different from any other job – with one exception. We are the ones with the gold, and the evil body shops are the ones that are trying to get it. That makes my job unique because not everyone gets to play the role of the leprechaun.
Although I am joking, there are a lot of similarities between insurance company employees and the leprechaun at the end of the rainbow protecting the pot of gold. We are unique, misunderstood, deceptively sneaky at times – and continuously worried about someone taking our money.
Customer Service Has the Power—Don’t Perfume the Pig
Written by The InsiderTo view a pdf file of this article with photos, click HERE.
Customer service has taken on a life unto itself. If you don’t have a job in which customer service is Priority Number One, then you won’t be employed for very long. Why? Because your company will lose business and eventually downsize or go out of business. We’ve become a society where outstanding customer service is no longer just expected. It’s demanded. And it’s demanded NOW!
Remember that old slogan at Burger King: “Have It Your Way.” To elaborate how extensive the desire to please the customer goes, here’s my embarrassing tale of my teenage grandson. He was visiting the other day and told me that he’d gone into a “BK” the day before and immediately after ordering had asked them to make fresh French fries because he didn’t want the ones already made. And I suppose their answer will be anti-climactic at this point: They did it.
I asked him why? Were the fries old? He said, acting very surprised, that they weren’t at all. But they told me, he said, that “I can have it my way.” Wow. I wish I could employ those tactics at home with my wife. It’s never my way.
Clean Up Your Own House Before You Gripe About Someone Else’s
Written by insurance insiderTo view a pdf file of this article with photos, click HERE.
“I wish I had a nickel for every time that happened.”
Yes, that’s an overly-used expression, but it applies to so many things. How rich would you be, for example, if you could charge a nickel toll for every worthless adjuster that walked through your door? I’m guessing that you are now imagining yourself as Bill Gates or Warren Buffett.
Sale of Estimate Data Isn’t New and Shops Don’t Own That Data
Written by insurance insiderTo view a pdf file of this article with photos, click HERE.
Have you sold your soul to the devil? I’m here to tell you that if you have a computerized estimating system, and you electronically communicate with an insurance company, you have.
You signed away your rights when you executed the contract to pay the information providers a monthly subscription fee.
With Estimates, Insurers See the Emperor’s Underwear
Written by insurance insiderEmperors and underwear? Referencing royalty’s skivvies in an article about body shops? Everyone in the kingdom thinks that the shops represent the peasants, while insurers are the heirs to the throne. Rumor has it that a CEO from one of the top three insurance carriers in the U.S. is a second-cousin to the Queen of England.
If that’s true, as royalty, there are privileges that we insurers are entitled to that quite frankly shops aren’t. What is it exactly that us royals get that most of my readers don’t? I’m not talking about “money,” although I suppose there may be some merit in that response.
To view a pdf file of this article with photos, click HERE.
Is the State Farm Elephant in the Room a Bad Elephant?
Written by insurance insiderThis is an interesting story and I don’t know quite where to start. How about: Elvis has just entered the building and nobody noticed. Is it possible for Elvis to walk into a room and take a seat yet have nobody notice that the King is in the house? It’s impossible, right?
Well, it seems just as impossible that collision repairers didn’t mention State Farm and parts at the most recent Collision Industry Conference (CIC) meeting. They are the most common words affectionately uttered by body shops owners throughout the country these days. So how is it possible that during one of the industry’s biggest stages, CIC, there wasn’t even a mention?
To view a pdf file of this article with photos, click HERE.
‘Survival of the Fittest’ Also Applies to Collision Repairers
Written by Insurance InsiderThe collision repair industry has too many body shops. I’m not sure anyone would seriously dispute that. The sooner we can rid ourselves of 15,000 body shops, the better all of us will be. Yes, it’s true, all of us will be far better off. This includes insurance companies, vendors, body shops themselves and consumers.
To view a PDF of this article please click HERE.
How can we make this happen at a faster pace? That may be beyond the limited scope of this mastermind, but it wouldn’t be an Insider article without a recommendation or two, so buckle up and get ready.
The car manufacturers should further develop their certification programs and join together as one voice to educate consumers at the point of purchase. “If your car is in an accident, you must take it to an OEM Certified Repair Facility to guarantee a proper repair. Taking your vehicle to a body shop outside the Certified program could result in an improper repair and compromise your safety.”
Sadly, that statement isn’t some trumped-up idea to scare people. It’s a fact and the motoring public should know that while there are more than 35,000 body shops in the country, too small a percentage are prepared to repair aluminum, identify substrates, weld “exotic” metals and use proper-sectioning procedures.
