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Wednesday, 13 November 2019 15:07

The Future of DRP: Is There One?

Written by Autobody News Contributor
L to R: Stacey Phillips and Pete Tagliapietra. L to R: Stacey Phillips and Pete Tagliapietra.

Index

This is when a vehicle owner takes photos of the damage, forwards them to the insurer through an app with the license plate and VIN number, the estimate is written and then sent to the repair shop of choice.

 

“Five years ago, this model didn’t represent even 3 percent of the claims processed,” said Tagliapietra. “We now have companies that have reached over 30 percent of self-serve photo estimates sent in by the vehicle owner … and they love it.”

 

Insurance companies are also embracing technology to analyze and audit claims. Tagliapietra highlighted several of these technologies in his presentation, including Artificial Intelligence (AI), image recognition, machine learning, predictive analytics and robotics automation.

 

Options for Collision Repairers

 

For many collision repair businesses, particularly those located in rural areas with one or two DRPs, the changes with DRP programs has caused a significant impact on their companies. Tagliapietra suggested several options independent repairers can consider incorporating into their businesses to meet these challenges.

 

Currently, there are opportunities for collision facilities to seek DRP relationships with second-tier insurers, according to Tagliapietra. For the most part, these companies don’t have the same infrastructure challenges as the top 20 insurers. He suggested shops reach out to local companies and demonstrate they are willing to meet Key Performance Indicators (KPIs).

 

“Learn more about the regional carriers in your local and state market area and how you want to promote business to them,” said Tagliapietra. “Then, call and find out who the local DRP coordinator is and let him or her know how you can differentiate yourself in performance.”

 

He stressed the importance of understanding that insurance companies are focused on cycle time, alternative parts, customer service and indemnity management.

 

“If shops can promote and support those KPIs for insurance companies, they may be selected to participate in a DRP,” he added.