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Wednesday, 25 October 2017 20:43

George Avery: Will DRP Shops Reach an ‘Efficiency Ceiling?’

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Former State Farm executive George Avery predicts there will come a time when collision repairers who participate in Direct Repair Programs (DRPs) are going to reach an “efficiency ceiling.” 

 

“They are going to say, ‘I can’t get any more efficient because if I participate in more than one DRP, I have to do things differently in all of the programs,’” said Avery during a Guild 21 podcast held in October, sponsored by Verifacts Automotive. 

 

After talking to others in the industry with a similar viewpoint, Avery set out to survey repairers and reach a consensus about the current administrative processes being used with insurers. 

 

He formulated the survey with the assistance of a nine-person committee consisting of repairers and insurance companies. It was released in early October. 


“The survey is intended to identify common and inconsistent administrative practices between Direct Repair Programs that may cause inefficiencies in the repair facility’s overall repair process and performance,” Avery explained. “Repairers use the letters A--E while filling out the survey to identify the DRP relationships of their choice, which are not intended to represent or identify any particular insurer.”

 

As of Oct. 13, 133 repairers responded to the survey. When the final results are tallied, Avery said they will be shared with insurers and repairers to find ways to improve repair efficiency and the customer experience. 

 

Before filling out the survey, respondents are asked how many repairs they complete each month and the number of DRP relationships they have. The survey addresses assignments, estimate preparation, supplements, photographs, total losses, final repair bill, training and information, and performance management.

 

During the Guild 21 podcast, Avery asked attendees eight questions representative of the survey to gain additional input and give shops an idea of what types of questions are asked (percentages are an approximation):


1) How do you prefer to have an appointment scheduled? 

50% – a phone call,

8% – scheduled online by the insurer

30% – scheduled online by the customer

4% – other

 

2) When do you prefer to upload the original repair estimate? 

18-20% – immediately 

15% – within 24 Hours 

12% – within 48 Hours 

60% – after the repair plan 

2% – not required


3) How do you prefer to notify when the vehicle is a possible total loss? 

4% – not required 

20% – phone call or fax

10% – website 

30% – e-mail 

40% – Mitchell / ADP / CCC


4) Preferred number of photos for COLLISION loss (not including T/L or Supplements)?

18% – it should be at repairer’s discretion 

2% – 0-1 

2% – 2-4 

63% – 5-10 

18% – 20 or more

 

5) Preferred number of photos for COMPREHENSIVE loss (not including T/L or Supplements)?

28% – it should be at repairer’s discretion 

2% – 0-1 

4% – 2-4 

50% – 5-10 

20% – 20 or more

 

Next steps include analyzing the survey results to determine if a follow-up survey is relevant and possibly conducting a secondary survey or meeting with insurers. Avery said the intent is to further discuss these issues during the Verifacts Automotive Forum scheduled for February 2018. Next steps include analyzing the survey results to determine if a follow-up survey is relevant and possibly conducting a secondary survey or meeting with insurers. Avery said the intent is to further discuss these issues during the Verifacts Automotive Forum scheduled for February 2018. 


Verifacts is a third-party onsite repair verification provider available to auto body repair shops. For more information, email: info@verifactsauto.com.

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