Insurance Actions (45)
Scott Biggs Blogs Warning on State Farm's Partstrader
Written by Scott BiggsState Farm’s latest entry into the parts business is more threatening, robust and all consuming than anything attempted in the past. In my opinion, this program will destroy the OEM list price, funnel all of the shop and dealers confidential pricing, discount and profit information to the insurer, undermine the OEM parts distribution network, wipe out thousands of OEM wholesale parts dealers, give control of parts pricing to State Farm and other insurers, and eventually eliminate the shops profit on parts. The shop’s and OE wholesale parts dealer’s survival is now in serious peril. This is a crisis of unequaled proportions. And, that prediction is mild compared to my worst fears!
to continue click HERE
CARSTAR Bolsters Insurance Committee with New Members
Written by CARSTAR staffCARSTAR announced March 21 that it has named three new members to its Insurance Relations Committee to help strengthen the lines of communication on the insurance issues facing the company and its shop owners.
The CARSTAR Insurance Relations Committee is a subcommittee of the Advisory Board, which is composed of franchisees who meet at least quarterly with the CARSTAR Insurance Relations Department to discuss store and industry insurance issues. This committee provides insight around the annual CARSTAR conference, industry issues (parts, CSI, refinish, rental, etc.), direct repair program management, aggregated performance numbers, concession based agreements and more, according to CARSTAR.
Joining the CARSTAR Insurance Relations Committee as new members are:
• Doug Pike, Pike’s CARSTAR Collision in Madison, OH
• Heath Harris, Steve’s CARSTAR Auto Body in Arnold, MO
• Sheri Johnson, ACS CARSTAR in Naples, FL
Returning to the CARSTAR Insurance Relations Committee are:
• Scott Hotalen, Vice Chair, Stanton’s CARSTAR in Binghamton, NY
• Dan Young, Co-Chair, CARSTAR Corporate in Overland Park, KS
• Doug Kelly, Collision Automotive CARSTAR in E. Hartford, CN
• Lynnette Greenemeier, Highland CARSTAR Auto Body in Denver, CO
• Corey Liss, Liss CARSTAR Collision in Crown Point, IN
• Jeff Middleton, Exhibition Automotive CARSTAR in Kent, WA
“We thank all of our Insurance Relations Committee members for their service and support that benefit all CARSTAR independent store owners,” said Dan Young, senior VP of Insurance Relations of CARSTAR Auto Body Repair Experts. “It is important to have an open line of communication between the CARSTAR leadership team and the independent store owner as we work with our national insurance partners. They contribute a tremendous amount of time and intellectual capital helping lead and grow this organization. ”
See www.carstar.com
Mexico Implements New Mandatory Auto Insurance Liability Laws
Written by Mexpro staffIn recent months, two of the most popular Mexican destinations for US and Canadian tourists have passed new laws requiring drivers to carry auto liability insurance at all times. Baja California Norte (home of destinations such as Tijuana, Ensenada, Rosarito, and San Felipe) and Jalisco (home of destinations such as Guadalajara, Lake Chapala, and Puerto Vallarta) have passed laws requiring that all drivers carry liability insurance. Other states have had similar mandatory auto liability insurance laws in place for some time.
Derek Kartchner, Vice President of Business Development for http://www.mexpro.com said, “We feel this is a good step towards solving a huge problem; whether in the US or in Mexico uninsured drivers create an unneeded burden at the time of an accident, and cost all drivers more. We applaud the states that have taken steps towards alleviating the number of uninsured drivers in Mexico, and encourage other states to do the same.”
Jim Labelle, CEO of IIG said, “While this is an important law, we would also urge our customers to ensure they are protecting their own interests. Not only should visitors to Mexico purchase Mexico Auto Liability coverage, but also Comprehensive and Collision coverage. We encourage all of our customers who drive to Mexico to obtain a similar level of coverage in Mexico that they carry in the USA or Canada."
Labelle's firm has insured over 1 million US and Canadian plated vehicles since launching its website a little over ten years ago. Visitors to Mexico can purchase and print their policies in real time on http://www.mexpro.com. All policies sold on the site meet the new state requirements, and many other optional coverages are available to ensure that consumers are properly covered when driving in Mexico.
For more information about these laws or to purchase a Mexico Auto Insurance policy visit http://www.mexpro.com or call 1- 888-467-4639.
Total Loss Legislation May Move in Florida Senate
Written by ASA staffASA asks Florida repair shop owners to contact their state senators in opposition
Florida Senate Bill 540, the companion bill to Florida House Bill 885, is set to be taken up in the Senate in the near future. Florida H.B. 885 passed the House with language that eliminates the current 80 percent threshold for a total-loss vehicle to receive a certificate of destruction – which would allow potentially unsafe vehicles to be branded as “repairable” and put back on the roads. The language in H.B. 885 could potentially be added to S.B. 540.
The Automotive Service Association (ASA) opposes legislation that would eliminate the certificate of destruction for severely damaged vehicles and would oppose any possible related amendments to S.B. 540 that would include this language.
The Automotive Service Association asks Florida repair shop owners to go to ASA’s legislative website at www.TakingTheHill.com to send a letter to their senators opposing any amendment to S.B. 540 that includes language to eliminate the current 80 percent threshold for a total-loss vehicle.
Mitchell has announced the immediate availability of Claims Triage, a technology solution created specifically to streamline resource allocation decision-making for physical damage claims. Claims Triage allows insurance carriers to determine the most efficient resource for an assignment at First Notice of Loss (FNOL), thereby improving customer satisfaction by accelerating claims settlement.
"Mitchell is continuously striving to improve the insurance claims experience with the most innovative solutions, driven by our data-centric approach to high performance claims management," said Paul Rosenstein, Vice President for Mitchell. "Claims Triage is another compelling example of our commitment to serving the unique property claims needs of our insurance clients."
Claims Triage eliminates assignment guesswork by defining questions and criteria around the status of the vehicle. This permits claims representatives to consistently route the assignment to the best resource for timely and accurate completion. WorkCenter simplifies the process of configuring the questions by providing a user interface that permits any authorized insurance user to update or change the questionnaire within minutes-eliminating the manual changes that are typically required when handling FNOL within a claims management system.
Claims Triage is fully integrated within Mitchell WorkCenter™, an open, modular, and end-to-end physical damage claims settlement solution that powers all of an insurer's physical damage claims processing needs including dispatch, appraisal, total loss, repair management, review and customer satisfaction reporting. To learn more, please go to Mitchell.com/WorkCenter.
Louisiana Expects a 3-ft Rise in Sea Level by 2100
Written by Cain Burdeau APA scientific report issued by Gov. Bobby Jindal's administration predicts that the Louisiana coast could see about 3 feet of sea level rise along the already low and vulnerable Louisiana coast by 2100 — a prediction that leaves this Cajun coast drowning and under siege from storm surge for decades to come.
To read article go HERE
PCI Says Auto Body Legislation will be Priority for 2012
Written by staffThe Property Casualty Insurers Association of America’s (PCI) said auto body legislation would be one of its key priorities for 2012. PCI said it anticipates the major auto body repair and glass issues for 2012 will involve aftermarket parts, labor rates, steering and estimating systems. To help control costs and promote customer service, PCI said it will oppose legislative efforts that would restrict insurers’ ability to make recommendations or suggestions to consumers on individual repair facilities or that would impede insurers’ ability to manage the claim repair process and control costs on behalf of consumers.
“PCI is committed to advancing a pro- consumer agenda that supports healthy, competitive insurance markets across the nation,” said Paul Blume, senior vice president of state government relations for PCI.
“In these tough economic times consumers are best served by measures that address the cost drivers of insurance and provide individuals with choices. Our agenda will also help modernize state regulatory environments and improve insurance marketplaces.”
In addition to auto body legislation, other priorities include protecting and promoting the viability of a competitive private insurance market, curbing fraud and abuse in several no- fault auto insurance systems, addressing auto body repair and coastal property insurance issues, as well as advancing cost containment measures in state workers compensation systems. In addition, PCI anticipates credit-based insurance scoring and tort reform to once again be legislative issues during 2012.
PCI said it made significant progress at the state, federal, and international levels last year on many issues, despite facing an anemic economy, increasing political and regulatory pressures, and historic natural disasters. Looking forward to 2012, PCI said it anticipates facing many of these issues again, with the additional challenge of advancing its advocacy agenda during a watershed presidential election year.
Study Shows Total Losses Rate Less Satisfaction than Repairs
Written by staffAuto insurance claimants who incur a total vehicle loss are notably less satisfied with the claims experience than claimants who incur a repairable vehicle claim, a new study by J.D. Power reports. Satisfaction averages 811 on a 1,000-point scale among claimants with a total loss — 42 points lower than among those whose vehicle is repaired, according to the J.D. Power 2011 U.S. Auto Claims Satisfaction Study released Oct 27.
Auto-Owners Insurance scored 890 in overall claimant satisfaction, ranking the highest among all insurance companies for the fourth consecutive year. The following insurance companies round out the top five:
• State Farm: 878 overall claimant satisfaction score
• Amica Mutual: 865 overall claimant satisfaction score
• American Family: 862 overall claimant satisfaction score
• The Hartford: 858 overall claimant satisfaction score
The following insurance companies comprise the five ranked lowest regarding claimant satisfaction:
• Farmers: 804 overall claimant satisfaction score
• Esurance: 800 overall claimant satisfaction score
• Encompass: 789 overall claimant satisfaction score
• Commerce: 772 overall claimant satisfaction score
• 21st Century: 771 overall claimant satisfaction score
This gap is largely due to a lack of satisfaction with the settlement among total loss claimants, with approximately one-half of these claimants citing the settlement they received wasn’t enough to replace their totaled vehicle with a similar make/model vehicle.
“Auto claims resulting in a total loss tend to be more complex, compared with vehicle repair claims, because in addition to filing a claim, claimants also have to purchase a replacement vehicle,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “Ongoing communication and managing expectations are key throughout the entire claims process, as total loss claims take 18.2 days, on average, for claimants to receive payment, compared with just 12.5 days for the return of a repaired vehicle.”
The Society of Collision Repair Specialists (SCRS) is conducting a survey of 13 major insurance companies to determine their use of aftermarket replacement parts.
The survey was sent last week to Allstate, American Family, Farmers, GEICO, Liberty Mutual, Mercury Insurance, Met Life Auto and Home, Nationwide, Progressive, State Farm, The Hartford, Travelers and USAA, according to Aaron Schulenburg, executive director of SCRS. He said the survey was “an effort to bring further transparency to our understanding of carrier’s approaches to use of aftermarket replacement parts.” The survey was motivated by input from SCRS members and ongoing discussions stemming from aftermarket replacement parts, Schulenburg said.
“We are finding that members in different parts of the country are submitting conflicting reports about the policies of some major national insurance companies. In other words, we are hearing that in some cases field level practices may vary from official corporate policy on parts use. In some cases, an insurer may have a policy for use of only certified parts, but when a certified part is unavailable, the shop is instructed to simply select a non-certified part by the field adjuster,” Schulenburg said.
“It is also possible that, in those cases, some shops may assume that a non-certified part is what the carrier wants them to do, and may not realize that the insurer would prefer an OEM replacement part if the only available alternative is a non-certified part,” he continued. “Knowing what specific corporate policies exist, provides for a better, more transparent, understanding of the approach taken in settling a vehicle owners claim. “In the interest of transparency, and with an issue as important as aftermarket parts in structural repair, the SCRS board of directors felt that it would be worth our efforts to conduct this study, and share the results with the industry.”
To see the insurer survey, CLICK HERE
Coccaro Case Takes a Wide Turn as NY Supreme Court Decides Consumers Can Sue Insurers for Steering Damages
Written by staffThe ongoing Greg Coccaro v. Progressive case (formally North State Autobahn, Inc. v Progressive Ins. Group) has taken a wide turn in a NY Supreme Court decision very similar to a recent California Supreme Court ruling (see coverage in Autobody News HERE.) Essentially both the NY (North State) and CA (Hughes) [See Autobody News' coverage of Hughes HERE.] decisions allow the respective State insurance codes, which prevent private parties from suing insurers for steering related damages, to be trumped by overlapping general business law, under which an insurer can, theoretically at present, be sued for steering-related damages.
North State's original case against Progressive had included several causes of action against the insurer, including steering, tortious interference, and injurious falsehood. The first claim, a violation of the state's anti-steering law, had been previously dismissed because New York (and also California) does not provide for a private right of action for such violations. Those violations are actionable only by a state or government agency such as the Attorney General or Department of Insurance.
The June 24, 2011 decision by NY Supreme Court Justice Gerald E. Loehr, in Westchester County, found that North State's claim against Progressive, which is predicated on derogatory statements about North State to its customers in order to steer them toward Progressive's DRP facilities, are not merely "disguised" claims of steering as Progressive argued. Progressive had filed a motion to dismiss the remaining claims against it including alleged violations of the General Business law. They argued that North State's argument was merely a disguised steering claim.
Basically the judge found that, although misrepresentations uttered in connection with a private, business-to-business dispute does not turn the matter into a general business law violation, practices by insurance companies involving routine, widespread marketing and communication with insureds, impacting the public at large, may support a cause of action under NY's general business law, section 349.
Allstate Announces ‘Process Changes’ Designed to Improve Network Cycle Time
Written by StaffBack on July 11, Allstate Insurance Company announced to its DRP participants that shops will be required to honor completion dates or assume all related costs, expedite estimate and upload completion times, and extend their hours of operation, when necessary, for the convenience of Allstate customers.
Now Allstate’s customer service initiative for 2011 has been expanded. The new program requirements were introduced to shops in a series of cycle time web conferences held recently. Those unable to view the web conferences are encouraged by the company to contact their local performance managers.
Allstate is making “several key process changes” within its Good Hands Repair Network that the company says are designed to positively impact customer service and cycle time. The announcement comes in the form of a video released by the company featuring Tracy Tramm, Allstate Claim Service Manager for the Good Hands® Repair Network.
In the video directed at the DRP shops, Tramm says “As you know, reducing auto cycle time is a key component in improving customer satisfaction for Allstate and your facility... as you continue to deliver priority service to our mutual customers.
“It goes without saying, that the quicker you reach out to the customer, the sooner they know, they’re in our good hands. I also want to remind you of four key messages and process changes to the network program in early 2011.
“Compliance with these items remains a core requirement for your participation in Allstate’s direct repair program.
“First and foremost, your shop will give priority service to Allstate customers having their vehicles repaired by you. Estimates must be completed and uploaded within 24 hours of your receipt of the vehicle. Third, your facility will be required to commit to a guaranteed completion date for all vehicles repaired under the Network program. Your shop will be responsible for any and all costs caused by a failure to meet the guaranteed completion date.
And finally, at the customer’s reasonable request, your shop will provide extended hours of operation. Contact your local performance manager to answer questions. You are why it works. Thank you.”
The video can be viewed at www.autobodynews.com by searching this story under the “Insurer Actions and Announcements” section.
