Activity has been heating up around proposed Assembly Bill 303, known in the industry as the "Concierge" bill because it is backed by Progressive Insurance. Progressive has a repair program known as "Concierge" because of its drop off and delivery services.
Shop owners struggling to remain profitable say they are increasingly focusing on the paint side of the shop, looking for innovative ways to squeeze even more productivity out of paint booths, paint products and paint personnel.
In the three years since "event data recorders" (often referred to as "black boxes") in vehicles really began to arise as an issue of interest for collision repairers, there has been significant activity related to EDRs on a number of fronts:
Last month State Farm, the nation's largest auto insurer, announced that it was beginning the rollout of a new program for its preferred body shops. The contract for that new program was sent to body shops in the test markets of California, Illinois and Michigan. Predictably, the response was mixed, but the "vibe" was definitely negative. Shop owners who admitted that they depend upon State Farm business for a large percentage of their volume either said nothing or said they were taking a wait and see attitude.
Hurricane losses and loss adjustment expenses totaling $6.3 billion (after reinsurance) contributed to a reduction in State Farm's 2005 net income. The company is reporting an after-tax net income from all sources of $3.24 billion, down 39 percent from the $5.31 billion in net income for 2004.
California State Senator Jackie Speier (D-San Francisco) has introduced SB 1492, groundbreaking legislation that would make the Bureau of Automotive Repair (BAR) responsible for conducting an annual survey of body shop labor rates for the purpose of establishing prevailing rates in different parts of the state.
Battle lines are being drawn in California over Assembly Bill 1852, a measure that would have the effect of legally sanctioning certified aftermarket crash parts by declaring that, once certified, they are of like kind and quality to OEM. Such sanctioning would presumably cut off consumers from taking legal action against their insurers for mandating the use of aftermarket parts in collision repairs.
The California Autobody Association (CAA) will be holding its own Legislative Day this year on March 29 at the Capitol in Sacramento. All body shops are invited to attend a short update session and participate in scheduled meetings with their legislators. Further information will be available at www.calautobody.com.
Insurance Commissioner John Garamendi has issued a Cease and Desist (C&D) Order on The Global Healings Society of Puyallup, Washington, following an investigation by the California Department of Insurance (CDI) Investigation Division. The Order demands The Global Healings Society to cease and desist transacting any and all insurance business in California.