With new vehicle technology, repair standards, performance and efficiency requirements and customer service expectations re-shaping how vehicles will be repaired in the future, the insurance landscape is shifting quickly for collision repair facilities.
John Harvey, vice president of sales for CARSTAR Canada, echoed a key message from the recent CARSTAR conference: “Only performance will drive growth.”
Over the past month, CARSTAR’s North American insurance sales team met with top insurance carriers and CARSTAR franchisees at the CARSTAR Conference and NACE Automechanika to look at the future of the collision repair industry and how top collision repair facilities can prepare for what’s ahead. The era of discount-based programs is slowly being eclipsed by performance-based agreements. Harvey commented that this is happening faster in the U.S. market, but the notion of discounts should rightfully be a thing of the past as insurers become more sophisticated and armed with analytical tools and big data.
“A key driver of the growth at CARSTAR is through existing relationships with our insurance partners, primarily with performance-based agreements (PBAs),” said Arlo Johnson, vice president of sales for CARSTAR U.S. “These PBAs require exacting standards of performance, and the high performance that CARSTAR facilities are able to deliver drives their profitability as well as overall customer satisfaction. This successful partnership with our insurance carriers also requires a vision for the future, so we work closely to anticipate the needs for tomorrow’s collision repair industry and prepare the CARSTAR network to meet them.”
CARSTAR sees more than 90 percent of its repair business come through insurance claims, and over 90 percent of CARSTAR stores participate in at least one PBA. Through this, it has a unique perspective on the changes to come and how collision repair professionals can address them.
Key trends on the CARSTAR horizon include:
• OEM Repair Standards – More and more, OEMs are driving the repair standards for vehicles. This creates an opportunity for the insurance carriers, OEMs and MSOs to work together to identify the best approach for repairing vehicles safely and correctly while balancing costs, cycle time and vehicle value.