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Thursday, 13 September 2018 09:53

Mike Cassata Presents on DRPs at NCACAR 3rd Quarter Meeting

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Mike Cassata of Hammer Insights presented on DRP relationships during NCACAR’s Third Quarter Meeting in Fayetteville, NC, in August. Mike Cassata of Hammer Insights presented on DRP relationships during NCACAR’s Third Quarter Meeting in Fayetteville, NC, in August.

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Mike Cassata of Hammer Insights delivered an eye-opening presentation on DRPs during North Carolina Association of Collision and Autobody Repair's Third Quarter Meeting in Fayetteville, NC, on August 16.

 

According to NCACAR President Brian Davies, “Our keynote speaker was Mike Cassata, whose main focus was ‘How to Create a World Class Culture to Communicate and Respond to our Clients from an Insurer's Point of View.’ Mike also spoke on the science behind NPS (Net Promoter Scores) and how it relates to our business. Finally, he spoke about the three C’s: Clear--Complete--Concise. He shared his thoughts on how critical file documentation is to the insurer and repairer and what negative effects it can have on cycle times. If the notes, pictures and documents are not clear, it can create delays in supplemental approvals along with subrogation claims handling.”

 

Cassata began his presentation by providing insights on DRPs, pointing out that the top 10 insurance carriers by written premiums have approximately 75 percent of the market share, while the top five write 50 percent of market share. All 10 top insurers have aggressive DRPs, continually update their criteria, use a scorecard to measure performance and reward or penalize performance; the scorecard is used to dictate how much work is referred to each shop.

 

Cassata explained that DRP managers look for shops that have been Gold Class for years, have OEM certifications, employ ASE-certified technicians, have earned industry-leading NPS scores and have clean, comfortable and well-equipped facilities.

 

“Many shops will not maintain their shop, purchase equipment or train their staff unless required by a DRP partner,” he said. “Better carriers are interested in partnerships with shops who have already embraced these initiatives and are not interested in shops who promise to do so if approved.

 

“Be sure to weigh the options prior to committing to any DRP relationship. Once you decide that the DRP model is right for your business, you must commit to being all in. If your attitude is that they are a necessary evil and you really dislike them, you will not thrive in this environment. You must train your staff that the insurance partner is just that: a partner and not the enemy. Again, pick your partners wisely.”


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