Category: Covid 19

LV= adds to repairer support

8 October 2021
Bodyshop, Covid 19, Finance, Insurance, Supplier, Technology, Vehicle Repair and Words

LV= has worked with Audatex to fully fund its repairers LV= Audatex costs.

LV= will continue to cover its repairers Assessment, AudaVIN+ and Audainvoice fees, as well as now cover the LV= proportion of the Software and Solutions fees.  This expanded contribution will be effective 1 November and will be applied to repairers invoices 1 December.

Brian Hodge, Director of Customer Claims at LV= General Insurance, said: “Our Network have been incredible over the course of the pandemic and we see them as a critical extension of our customer service proposition. In today’s environment, where so many costs are escalating and repairers are having to find increasingly innovative solutions to stay profitable, we are proud to support them with full funding of their Audatex costs.” 

Chris Payne, Head of Networks and Engineering at LV= General Insurance, explained: “We understand the importance and value of our repair Network and will continue to find new ways of working collaboratively in order to share success and profitability moving forward. I would also like to thank Audatex in helping find a solution to getting this done.”

Marc Holding, Managing Director for the Vella Group, said the initial support provided by LV= during the first Covid Lockdown was ‘very timely’ and that the additional support “comes at a time where it will have a very real impact, with repairers adjusting to the post Covid trading environment, which is proving to be one in which financial pressures continue to mount.”

Neil Garrett, Sales Director, Audatex UK & South Africa said, “We are always open to creative ways to support our customers and I am delighted to expand this significant collaboration with LV= at such a crucial time in our economic recovery.  We are best when we recognise and share the challenges as an industry together.”

The power of partnerships

8 October 2021
Bodyshop, Covid 19, Environment, Insurance, People, Supplier, Technology, Training, Vehicle Repair and Words

Many of the challenges facing the automotive aftermarket are larger than any one organisation, and overcoming them will require a willingness to work together that might not come naturally to ambitious and competing businesses.

That was the message from webinARC 3.9 entitled, A joined up approach, which saw panellists Michael Holding, network manager, LV=, and Andrew Walsh, founder and CEO of AW Repair Group, explain how their close partnership has reaped dividends in key areas such as technology, the environment and staffing.

But underpinning it all is communication, which has created an appreciation of each other’s challenges and priorities during difficult times.

Michael said, “We know volumes are critical for our network and we’ve been really conscious of trying to support them with that. There are challenges around staffing and parts, so communication is critical to be able offer them the right kind of support. But what we need to remember is that there is a customer at the end of every job, so we need to promote a joined-up approach between ourselves, the repairer and the policyholder.”

Technology

That is even more critical in a sector where technology is moving as such a pace that many struggle to keep up. However, by working closer with an insurer partner both parties can tackle the tech conundrum together and implement processes of standardisation that go some way to reducing the complexity of repair.

Michael said, “We are on the eve of an evolution within technology, so we need to make sure our repairers can make the right investments in technology so we can offer it back to customers.

“But the benefits for the repairer are similar to those for an insurer. For example, with sole sites you get a number of things: one customer and one process that you can trust, and by developing a close working relationship you can remove a number of the complexities that can exist when there are multiple providers feeding into a site.

“It also gives us opportunities to trial new schemes and pilots. Some work and some don’t, but they all help to create transparency, and that is what you need to reach a level where you both get what you want from the partnership.”

Environment

Another area that can’t be addressed in silos is the environment, which is an ever-growing concern for both company and consumer alike.

AW Repair Group was already considering its own sustainability strategies when its relationship with LV= enabled it to accelerate plans.

Andrew explained, ‘It is a changing landscape now and if you are a professional organisation you have to consider your environment impact. We were already looking at everything but maybe we weren’t sure exactly how to go about things. Working with Michael has been really useful in that sense and enabled us to bring everything to the fore a lot quicker.’

So much so that his group became the first in the UK to achieve the PAS 2060 standard in March this year, and Michael believes the march AW Repair Group has stolen on their rivals is both competitive and ethical.

He said, ‘All the large corporates are going to look at their supply chain and ask them what they are doing for the environment. LV= might be early adopters, but for us it is important to work with an ethical supply chain. It is important today and will be even more important tomorrow.’

To date 19 of its 25 sole sites have achieved the PAS 2060 standard.

Michael said, ‘It’s the right thing to do and it gives you a commercial advantage.’

Skills

Meanwhile, the skills shortage is also an issue that cannot be tackled alone. AW Repair Group has actually managed to open two new sites during lockdown, but Andrew admits that a lack of skills could well hamper future growth for repairers across the country.

He believes apprentices are the only logical solution and Andrew hopes a showcase event will help them find at least three more apprentices to take their 2021 intake to 15, which is the group’s annual target.

But even with this constant commitment to back-fill the group with young people, Andrew says it is impossible not to be affected by a lack of skills.

He said, ‘We are going through such a skills shortage at the moment. We have always had one, but it is really squeezing now and when there is a shortage of anything the costs will go up. So we’re going to see wages go up. All repair networks will be going through exactly the same problem but having a good relationship with your work partner makes those conversations so much easier.’

ARC360, in association with I Love Claims, is supported by corporate partners BASF, BMS, Copart, EMACS, Entegral, Enterprise Rent-a-Car, Innovation Group, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, Sherwin Williams and CAPS; partners asTech, The Green Parts Specialists, Indasa and Prasco UK.

Market Intelligence: Wednesday 6 October 2021

6 October 2021
Bodyshop, Covid 19, Mobility, Supplier, Technology, Vehicle Repair and Words
Loading...

Winds of change

1 October 2021
Bodyshop, Covid 19, People, Supplier, Technology, Training, Vehicle Repair and Words

The incident repair aftermarket is being buffeted by the winds of change. Technology is revolutionising the product, digitalisation is revolutionising the process of business, while the changing societal attitudes are impacting both customer behaviour and expectation.

It has always been true that the choices businesses make determine their future success; this is especially so when new technology is emerging, and in the last few decades there have been some colossal winners and losers.

  • Amazon was founded in 1994 as an online marketplace for books. The decision to establish the business online, when just five million Americans had the internet, is part of the reason it is now worth $1.7tn.
  • Blockbuster snubbed a $50m acquisition of Netflix in 2000, a decision which still seemed sound in 2002 when the video outlet was valued at $5bn. But by 2005 it had lost 75% of its value and it was declared bankrupt in 2010. Netflix is now valued at near $230bn.
  • Blackberry was once the Apple of its day, but its refusal to adapt new technologies (touchscreen) or allow other apps to use its hardware allowed rivals to flourish in its place. Despite leading the industry and being at the forefront of a technology that has changed the world, it now controls just 0.3% of the smartphone market and in 2018 stopped making phones altogether. Apple is valued at $2.08tn.

Similar trajectories, albeit on a smaller scale, are being seen in the automotive industry, where Tesla is now worth more than the next nine car manufacturers combined, all of whom are hastily remaking themselves from the boots up to remain relevant into the 21st century.

Aftermarket

But where vehicle manufacturers go, the aftermarket inevitably follows. That means the major choices faced by VMs in recent years – new technology, digitalisation, the environment, customer behaviours – are also confronting those further down the supply chain.

And if they weren’t pressing enough beforehand, Covid-19 has pushed this evolution into overdrive, with consumer attitudes and new ways of working ushered in almost overnight. No less significantly, the pandemic has left a bitter aftertaste in the form of unforeseen consequences, namely:

  • Global shortages of raw materials
  • Supply chain disruption
  • Spiralling prices of parts
  • Rising wages

Dave Sargeant, managing director of Gemini ARC, said, ‘The lifting of lockdown restrictions brought many challenges to the repair industry – some short-lived, and some will be here for the foreseeable future.

‘Operationally there are two major challenges. One we have seen before; parts delays. This is having a big impact on key-to-key and life cycles. Profits will inevitably be hit as parts prices rise and delays occur, while courtesy car costs are also going up as new car availability is scarce. Hire cars fill the gap but this comes at a price.

‘The second challenge is that as volumes come back, staff wages are increasing as the market struggles to recruit to cover the volumes.’

Shake up

This was exacerbated when Nationwide Accident Repair Services went into administration during lockdown, and although Redde Northgate stepped in to take over 77 of the 102 sites, the impact has created substantial ripples that are still being felt now. 

What it has done though is create an environment of opportunity, which has served to highlight the different choices businesses have made.

Dave said, ‘Lockdown created the biggest change in the industry for years. New contracts were won and lost and many tenders were up for grabs. Then, losing the biggest player in the bodyshop market displaced low volumes that the insurers could manage. Bodyshops and insurers alike are still trying to manage this unique situation and it will take some time to settle.

‘But what we’ve seen so far is some groups using venture capitalist money to grow and expand, while others focusing on their current sites and the challenges Covid-19 has brought. Either way, it’s never been more important for bodyshops to pick the right partner who is both supportive and understands the importance of bodyshop’s sustainability.’

Partnerships

But what should businesses be looking for in a partner? The economics of it is only part of the equation. With so many issues impacting the sector, repairers need to find someone who can support them on a more holistic level.

Matthew Penning, group managing director of Pennings Repair Centres, said, ‘We chose our partners very carefully – both customers and our supply chain. With customers, it’s not just about the labour rates or complete contract terms, although that is very important, but about our relationship, how we deal with challenges together and also to create a sustainable relationship.

‘For our supply chain – parts and paint/consumables supply – we are equally selective. Again, discounts are vital, but we also need to ensure the relationship is strong and lead times low, in order for us to deliver those low cycle times we and our customers require. We are only as good as our supply chain.’

The customer

But while business relationships are obviously paramount, the most important relationship a company will have is with its customers, and one of the most notable changes during the recent past has been customer attitude, specifically, the willingness to replace human interaction with digital solutions.

One area where this is most obvious is in the use of artificial intelligence in motor claims. Verisk’s ENOL solution, for example, takes the whole process online, reducing claims times from days or weeks to hours or minutes.

Essentially, the solution allows the customer to log on to the insurer website, fills in a digital self-service form, take the requested images, and within 10 seconds they will know if the vehicle is repairable or not. If repairable, a list of required parts will simultaneously be sent to the repairer, as well as images and videos of the vehicle. If the vehicle is a total loss, a settlement figure will be sent to the customer within seconds, with funds transferred the same day.

Again, solutions such as these are asking managers to make a choice.

Karl Hewitson, operations director, Verisk, said, ‘The shift in customer expectation has driven the shift in AI and digitalisation, and businesses have to decide if they want to be forward-thinking or at the back of the pack, watching others move ahead.

‘In terms of motor claims, customers expect quick, easy, informative updates, 24/7, and they expect them to be pertinent to the claim at that point of time. The technology is there now to provide that, and it offers a win/win/win solution – better customer experience, faster triage and settlement times, and standardisation and operational efficiency.

‘There will always be more complex claims, particularly when personal injury is involved, but you can manage that by operating a hybrid approach, using digitalisation and AI with manual approach. This will lead to benefits from day one, which can be passed on.’

Branding

But if there are choices to be made around FNOL, there are even more around the actual repair process. The technology within vehicles now is making it increasingly unviable to offer all repairs for all brands. The training and tooling costs would soon cripple most bodyshops.

The choice for many, then, is to focus on a certain type of repair (alloy wheels, dents etc) or partner with certain vehicle manufacturers.

Matthew said, ‘We know that specialisation is the key to reducing training and tooling costs. The key decisions are as to which route to take – individual brands, prestige, commercial vehicles, specialist vehicles, etc. These decisions haven’t really changed for us in the last five years, however, as the vehicle parc fragments, it becomes increasingly pressing to make those choices.’

Of course, the driving force behind the growing differentiation of brands is ADAS and EVs, which will be dealt with in a future feature, and the speed with which both technologies are penetrating the market means ignoring either is not an option. All new cars in the EU must have some form of ADAS from next year onwards, while in June Tesla’s Model 3 become the top selling car in the UK for the first time.

For many repairers, the only way to stay on top of this and future-proof their business both in terms of tooling and training is by aligning with a VM.

Matthew said, ‘Having relationships with VMs in the long-term is critical in order to ensure correct methods and procedures can be attained.’

Choice

But in an industry so entwined and with so many moving parts, the possibility to differentiate in service exists for all sectors. The connectivity that has come about through new technologies has created a new sub-sector of middle-men – or rather, it has enhanced their services and enabled them to facilitate the needs of their customer so much more effectively.

For example, Innovation Group sits in the middle of insurers and repairers, and offers bespoke services to each to help the claims process run more smoothly.

Sarah Middleton, marketing manager, said, ‘We offer motor and property insurers an end-to end claims management service, from first notification of loss through to completion of restoration and repairs. Our pioneering digital platform brings clear advantages in both cost and customer experience.’

Motor services include, but are not restricted to:

  • 24/7 First Notification of Loss
  • Credit Hire Services
  • Network creation and performance management
  • Network Audit
  • In-house Engineering and cost control programmes
  • Fraud Specialists

But services can be end-to-end or modular, with flexibility at the heart of what it offers to ensure the package is best suited to the customer.

Meanwhile, repairers joining the network benefit from regular volume enabling them to plan workshop loading, as well as working with a partner focused on innovation and efficiency improvements throughout the process.

Sarah said, ‘Our unique one-stop operating model and in-house solutions have been designed to ensure consistency for the customer, with no unnecessary and confusing hand-offs between parties. Our customer-first approach is solidified by the expertise of our claims handling personnel who will ensure customers feel supported and engaged proactively at all stages during the life cycle of their claim.’

Future

Ultimately, the market now is one of choice. Lockdown has provided an opportunity to consider new ways of working, some of which will be temporary while others will embed themselves into the industry for years to come.

However, change is constant and perhaps the most important thing to consider is that whatever decisions are taken now, they need to be adaptable.

Matthew concluded, ‘We fight this continuous invading trance of technology. It’s a moving marketplace, where change is the norm. Both scalability and flexibility are critical and are facilitators in being able to move dynamically with the technological challenges and customer expectations. Working in this industry with such tight margins, means that it is critical to ensure we can scale and flex the business at very short notice.

‘None of us have a crystal ball, although we do have hindsight in order to guide us into making more informed decisions. Winning and losing is not just about profit, it’s about sustainability, flexibility, teamwork and a focus on delivering what our customers need.’

ARC360, in association with I Love Claims, is supported by corporate partners BASF, BMS, Copart, EMACS, Entegral, Enterprise Rent-a-Car, Innovation Group, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, Sherwin Williams and CAPS; partners asTech, The Green Parts Specialists, Indasa and Prasco UK.

Post-pandemic war for talent intensifies

24 September 2021
Bodyshop, Covid 19, Finance, Insurance, People, Supplier, Technology, Training, Vehicle Repair and Words

Recruitment and retention were among the biggest challenges facing the automotive aftermarket before Covid-19, and they remain so now.

In fact, the pandemic has exacerbated the issue with competition for staff reaching new levels.

According to Micah Sherwood, bodyshop manager, English Ford – Foray Motor Group, the battle for skilled people has never been more fierce. She revealed that a number of her colleagues have been approached by other companies, who have promised them what she describes as an ‘unsustainable’ wage packet. 

She said, ‘Fortunately we haven’t lost anyone because we offer more than just a salary, but there have definitely been approaches, so for us staff retention is the main priority at the moment and I think it will remain so throughout quarter four.’

Future

Micah was talking at the second post-summer ARC360 live webinar, called the Repairer special: gearing for the future, which focused on the current and upcoming challenges faced by bodyshops emerging from Covid-19.

She was joined on the panel by Darren Wills, executive director, Motofix Accident Repair Centres, who agreed that staff shortages have worsened in recent months.

He said, ‘There have always been staff challenges in the workshop, but the pressure to recruit and retain has spread to other roles in the last six months, such as HGV and delivery drivers. There is a real challenge to recruit there and it is driving up wages.’

Another factor affecting staffing levels has been a change in attitude of employees, both in terms of when they work and how they work. Some are requesting flexible working hours post-furlough and, on top of that, having grown used to a slower pace of work when volumes were low, some are struggling to get back to full speed again.

Apprentices

Apprenticeships are often put forward as the most logical and sustainable solution, and Micah said that Foray Motor Group has two apprentices at every site and is still trying to fill other apprenticeship vacancies.

However, Darren pointed out that the problem may directly impact the solution.

He said, ‘There is an increasing challenge to find the right mentors who can put in the time and resource to turn apprentices into key members of the team. I think this is an area where the largest insurers and work providers could collaborate with us a bit more to share costs and training resources.’

Profits

Alongside staffing concerns, another post-pandemic challenge appears to be that more ‘middle-men’ are trying to get a larger slice of the pie.

Volumes are recovering to a degree, more so in some geographical areas than others, but margins remain typically tight for bodyshops already weakened by the last 18 months and most can’t afford to see their profits diluted further.

Darren said, ‘Work providers are stepping into the upstream supply chain, getting involved in areas such as parts and paints supply. Bodyshops run on very thin margins, so sharing those margins out is a bit of a challenge. I welcome new ideas and new ways of working, but they need to be thought out because bodyshops need to at least make a bit of money to be sustainable.’

Segmentation

For many, the most practical route to profit now is segmentation. This was already happening before the pandemic with the market splitting into specialist areas, but it has been accelerated in many business strategies since then. Some groups are still opting to cover all bases, but the investment required to do this is growing exponentially.

Darren said, ‘The idea of any business being future-proofed is a misnomer. Technology is not going to slow down. But all businesses are run by people so keeping people on board is crucial. You also need to be nimble enough to roll with the punches. No one would have predicted the last 18 months, so, yes, have a plan, but be able to change it at short notice if circumstances dictate.’

ARC360, in association with I Love Claims, is supported by corporate partners BASF, BMS, Copart, EMACS, Entegral, Enterprise Rent-a-Car, Innovation Group, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, Sherwin Williams and CAPS; partners asTech, The Green Parts Specialists, Indasa and Prasco UK.

Market Intelligence: Wednesday 22 September 2021

22 September 2021
Bodyshop, Covid 19, Mobility, Supplier, Technology, Vehicle Repair and Words
Loading...

Rising Star Interview: Hina Khan, Copart

17 September 2021
Covid 19, Environment, People, Salvage, Supplier, Technology, Training and Words

Here, ILC – parent company of ARC360 – catches up with Hina Khan, Head of Financial Control & FPA (UK & Ireland) for Copart UK to discuss insights; opportunities; and technology.

Tell us about your role. What do you do, and what do you find most interesting about it?

I joined Copart UK as Head of Financial Control & FPA (UK & Ireland) in October 2020. My role primarily focuses on providing insights, reporting on our financial performance, and ensuring that we have robust financial controls in place, especially around cash management and business partnering with key stakeholders to help drive profitable growth.

On a day-to-day basis, I take responsibility for the following areas:

  • Management Accounts:  Producing Copart’s monthly financial statements, Profit & Loss account, and Balance Sheet, providing insights into our financial performance.
  • Financial Planning & Analysis: Preparing budgets, forecasts, and analysis to support the business in making operational, financial, and strategic decisions.
  • Accounts Payable: Processing and paying our supplier invoices.
  • Accounts Receivable: Invoicing our customers and chasing debt.
  • Treasury: Reconciling our bank accounts and ensuring our cash is appropriately managed and invested.
  • Payroll: Calculating and processing individuals pay  

The most enjoyable part of my role is working with a great team and being part of their development and growth. I love interacting with all areas of our business and providing support for the various decision-making processes.

It’s a high-pressured and fast-paced environment, but I love how rewarding my role can be. It’s been great to be part of many different initiatives and projects that have improved our supplier and customer experience and it’s always nice seeing the buzz and excitement when a supercar or classic goes into the auction.

What made you want to work in this industry? 

I’ve always had a keen interest in the automotive industry so was very excited when the opportunity at Copart came along. Looking at the business stats, I was intrigued by how successful and resilient Copart has been, especially during the COVID pandemic, and I’m pleased to now be a part of that continuing success story.

The industry is constantly changing and evolving, and technology is always at the forefront of everything we do. Ensuring that our processes and procedures stay up to date with those changes can present various challenges, but at the same time keeps you engaged and motivated.

The role itself certainly hasn’t disappointed either! I’ve been given opportunities to make positive changes and take on more responsibility in a short space of time.  The culture here is very inclusive and everyone is encouraged to ‘challenge the norm’, which is one of the Copart Values.

There’s clear commitment to ongoing training and development, as well as a very supportive leadership team. Your role is really what you make of it!

What do you see as the biggest challenge to your industry in the next year?

The impact of COVID has undoubtedly hit a lot of business hard and many will still feel the impact during this coming year.

Copart has had to adapt to changes in the market and customer behaviour to ride through the COVID wave but has still come through with very positive financial results. That’s testament to its business model and amazing people, who always ensure that our customers are at the heart of everything we do. This will undoubtedly help us to overcome any similar challenges this year.   

The impact of Brexit and the skills gap this has created is likely to be another challenge facing many businesses. Copart has already implemented various initiatives to attract and retain talent and potential candidates will soon realise that our culture, opportunities, rewards, and strong financial model, make this a great place to work and develop a long-term career.

New technology, in particular Electric Vehicles and online sales, have steadily increased year on year. This next year will be no exception as customers strive to find more economical and greener ways to make purchases.

Copart are already ahead of the game – and have been since our inception – with our 100% online auctions using the latest technology. Our customer experience is second to none and something we have always prided ourselves on.

In addition, Copart has already been successfully managing electric vehicles for many years. We have the infrastructure and expertise to cope with increasing numbers and we are well placed to cope with Government’s ambitious target to go electric by 2030.

How would you like to see the industry improved? 

One of the things I would love to see is the common myths about vehicle auctions being debunked.

In this digital age, anyone can view vehicles from the comfort of their own home in their own time and carry out all important history checks online. It’s an extremely inclusive space as everyone from beginners to experienced salesmen can bid, so there’s no intimidating atmosphere.

It should also be recognised that a huge variety of cars, not just damaged ones, go into our auctions. I’ve even seen a few Lamborghinis over the past few months…and most importantly  they’re still great value for money!

Something I’ve been very passionate about is seeing more women in senior roles across the industry generally. Whilst some great strides have been made towards this, there is always room for more progress.

I’ve been very fortunate with all the opportunities I’ve been presented with at Copart, and I have worked with some very inspirational leaders. I hope that similar opportunities will continue to be presented to others across the wider industry and it would also be nice to see more women in the F1 Grand Prix!

If you could give your 16-year-old self a piece of advice, what would it be?

Celebrate all your successes no matter how small they may seem, always expect the unexpected, and remember that chocolate is good for you!

News Round-Up: Friday 17 September 2021

17 September 2021
Bodyshop, Covid 19, Insurance, People, Supplier, Technology, Vehicle Repair and Words

Repairer special: gearing for the future

In this webinARC we catch up with some leading repairers to discuss the current state of the market; what it means for business; and how they are gearing for the future.

Featuring: Darren Wills, Executive Director, Motofix Accident Repair Centres & Micah Sherwood, Bodyshop Manager, English Ford – Foray Motor Group Ltd

Register now

Cazoo acquires SMH

Cazoo has acquired SMH Fleet Solutions (SMH), one of the UK’s leading vehicle preparation, logistics and storage businesses.

Established in 2003, SMH has a team of over 500 currently processing more than 70,000 vehicle refurbishments annually from six vehicle preparation sites. The business also carries out over 150,000 vehicle movements per year with a team of over 300 logistics specialists as well as operating an online wholesale platform for used cars.

The move double Cazoo’s overall vehicle reconditioning, logistics and storage capabilities in the UK with 11 total sites across more than 265 acres, as well as providing it with an experienced team of hundreds of additional vehicle preparation and logistics specialists and its own digital wholesale platform.

Allianz X backs GT Motive

GT Motive has signed a definitive agreement for a change in ownership with Allianz X (Allianz Group) acquiring a majority stake from current shareholders Mitchell and Einsa.

“GT Motive provides highly-accurate data at competitive prices and one of the most integrative, customer-centric platforms on the market,” said Dr Nazim Cetin, CEO of Allianz X. “We see enormous potential to scale it up into a hard-hitting heavy-weight. All it needs is some more muscle behind it – and that’s where Allianz X can help.”

Aviva finds appetite for EVs accelerates

The coronavirus pandemic has driven a fundamental shift in motorists’ attitudes towards driving and their choice of vehicle, according to research by Aviva.

Aviva has tracked UK motorists’ attitudes towards electric vehicles (EVs) over a number of years and the appetite for more environmentally friendly models has grown considerably in the past 18 months.

Over the last year, the desire for hybrid and electric vehicles has intensified, with almost half of UK drivers (46%) saying their next vehicle will be at least partly powered by electricity.

NBRA names green award winners

The NBRA has revealed the winners of its Greener Bodyshop Awards with ABL Accident Repair Group, AW Repair Group and The Vella Group receiving two awards each.

Other winners included Motofix Group who took the Charity Award. Richard Tutt, Motofix Group Chairman, said, “As a business we have always held a strong belief in the need to give back.”

Fix Auto Penzance took the Carbon Footprint Independent Award. Owner Stuart Cameron said, “I am extremely fortunate that my entire team at Fix Auto Penzance have truly bought into the necessity to operate as ecologically-friendly as possible.”

LV= General Insurance took the Outstanding Support for Bodyshops Award.

Shorade UK appoints brand manager

Shorade UK has appointed Rachel Bentham, formerly BASF Automotive Refinish, as Brand Manager. 

Shorade UK is committed to creating and operating exceptional, innovative accident repair facilities across the UK. Working closely with selected vehicle manufacturers, Shorade UK will create bespoke but scalable solutions, with a focus on the customer experience.

Rachel will be responsible for branding activities for all associated partners and businesses as well as engagement with vehicle manufacturer programmes, dealership partners and other key stakeholders.

Zurich partners with KGM

Zurich UK has announced a new long-term agreement with KGM Underwriting, one of the UKs leading specialist and niche motor insurers and part of the A-Plan / Howden Group.

The partnership secures Zurich’s solus capacity, over a five-year term, for KGM’s motor portfolio. The five-year arrangement is worth over £700m GWP and will commence in January 2022.

Commenting on the new MGA capacity deal, Dave Martin, Zurich’s Head of Retail said: “This deal aligns to our wider Retail growth strategy by combining the financial strength, expertise and brand of Zurich with the technical knowledge and distribution reach of a specialist underwriter and strategic broker partner.”

Markerstudy appoints two new NEDS

Markerstudy Group has appointed Neil Utley and Matthew Donaldson as Non-Executive Directors.

Both bring extensive experience from within the financial services and insurance sectors. Neil was most recently as Chairman of Hastings Insurance Group, leading the MBO from IAG, an IPO and subsequent listing on the UK Stock Exchange. Matthew was most recently Group CEO of BGL Group where he joined as National Sales and Operations Director in 2001, and held pivotal senior roles, including Director of E-Commerce, Managing Director, and Group COO.

News Round-Up: Friday 10 September 2021

10 September 2021
Bodyshop, Car Rental, Covid 19, Environment, Insurance, Mobility, People, Salvage, Supplier, Technology, Training, Vehicle Repair and Words

Watch now…

Catch up on webinARC 3.7: the data jigsaw as we explore what the ‘summer’ has meant for claims; do the numbers tell the full story; and what can we expect in the coming weeks as work/life patterns resume.

Featuring: Paul Sell, Associate Director, Trend Tracker; Jordan Chinn, Network Manager, Innovation Group; Rob Hopkins, Insurance Claims Operations Specialist.

Enterprise backs apprentices with levy transfer

Enterprise has again committed to a levy transfer enabling its approved repairer network to apply for a funding grant towards the costs of training and assessing apprentices.

The initiative, administered by AutoRaise, was one of the first to be set up in the industry and sees Enterprise continue with its commitment in supporting apprentices by transferring some of its unspent apprenticeship levy.

Nick Sweetman, Managing Director of EHI said, “We are delighted to be able to support our network with this important initiative and help invest in the future talent of the vehicle repair industry.”

Vehicle usage shows divide

Motor vehicle use in Great Britain increased month-on-month in August to an average figure of 101% per day according to Department of Transport data.

However, the data shows that weekends continue to be the peak periods of road transport usage with ‘all motor vehicle’ use averaging 110% during weekends, compared to 97% during weekdays.

Trend Tracker reports August volumes at 86%

Trend Tracker has reported accident repair volumes for August 2021 at 86% of August 2019.

Whilst the total number of repairs in August dropped by 3,500 from July (source: Audatex UK), according to Trend Tracker it was in keeping with the seasonal trend.

In comparison to 2019, August was a better month than July, with July 2021 at 77% of 2019 levels.

Keeping the faith

Repairers and insurers have built up a new level of trust with consumers during Covid-19, but it is fragile and must not be taken for granted as the country begins to emerge from the pandemic.

That was the insightful message of the first post-summer ARC360 live webinar, held in association with I Love Claims.

The Data Jigsaw invited Jordan Chinn of the Innovation Group; insurance claims operations specialist Rob Hopkins; and Paul Sell of Trend Tracker to pick their way through the latest industry figures, but it was a far less scientific conclusion that resonated loudest.

Zenzic and Thatcham Research reveal plans

Zenzic, the organisation dedicated to accelerating the self-driving revolution in the UK, has announced funding for a proof-of-concept consumer safety rating for Automated Driving Systems, via Thatcham Research and CAM Testbed partners.

Initially, the independent rating will focus on Automated Lane Keeping Systems (ALKS). This technology could see motorists driving hands-free on UK motorways at limited speeds within a year. The goal is that this project will act as a basis for consumer safety rating of future Automated Driving Systems, and it is anticipated that it will later be adopted by consumer safety organisations such as Euro NCAP.

Survey finds EV ownership rising fast

Over seven per cent of respondents to Trend Tracker’s EV Readiness report have an EV or hybrid vehicle – more than a five per cent increase on the expected conversion reported by ET&T in 2020.

From the 980 people who answered the survey, 71 had at least one electric or hybrid vehicle, equating to 7.2% market conversion as of June 2021.

The finding comes as data shows new car sales are seeing an exponential rise in electric and hybrid vehicles, with 38% of new vehicle sales being an electric, hybrid or mild hybrid vehicle from January to June 2021, a 94% increase from 2020 according to SMMT.

Mindset modification for VMs

Audi has said vehicle manufacturers need to change their mindsets to ensure their products remain safe to drive post sale.

Jan Michel, chief transition architect at the brand’s technical development department, said that to ensure vehicles can be updated throughout their lifespan, manufacturers need to change their entire product development process.

He said, ‘We no longer think sequentially from procurement to development to production to sales. We have to continue working on the software even after the car is on the market, make advancements to the sensor technology, and ensure that the vehicle can be updated.’

Zurich partners on green parts

Zurich Insurance UK and Synetiq have agreed a new green parts partnership.

David Nichols, Zurich’s Chief Claims Officer, said: “Green parts are a more sustainable way to repair components that are non-safety critical. By extending the life of parts that would otherwise be scrapped, we can reduce harmful carbon emissions while continuing to offer our customers high quality repairs. This partnership reflects our wider commitment to embed sustainability across our business, and we very much look forward to working with Synetiq.”

Seven sentenced for fictitious collision

Seven men have been sentenced for attempting to make insurance claims for a bogus road traffic collision.

The City of London Police’s Insurance Fraud Enforcement Department (IFED) began investigating the case in September 2019, after six men claimed to have been involved in a collision between two vehicles. However, as the insurer became suspicious of their claims and investigated further, discrepancies began to show, revealing the cars had been deliberately.

Another man, the owner of a local recovery service, was also sentenced for his involvement in the plot.

Alternative propulsions powers five-star ratings

In the latest round of Euro NCAP testing, the Audi Q4 e-tron, Lynk and Co 01, NIO ES8, Subaru Outback and Toyota Mirai all achieved five-star safety ratings, with all but the Subaru Outback using alternative propulsion methods.

The hydrogen powered Toyota Mirai performed very well in testing, scoring highly in the Adult (88%) and Child Occupant (85%) Protection categories.

Matthew Avery, Director of Insurance Research, Thatcham Research, said, “Despite consumer concerns surrounding their potential volatility due to the high-pressure tank, the Toyota Mirai demonstrates that hydrogen fuelled vehicles can be just as secure and safe as their combustion and electric-propelled equivalents.”

Automated test platform raises further $32m

Foretellix, a platform provider automating the testing, verification and validation for automated driving systems, has secured $32m in its latest series B funding round, bringing its total raised capital to over $50m.

Founded in 2018 Fortellix uses a quantifiable approach to safety and hyper-automation to create and test all possible scenarios these systems may encounter, along with big data analytics to ensure the safety and completeness of the testing processes.

Book now…

ARC360 Gaining Ground Together Q4 2021 – themed Back to the Future – will focus on just what the past means for the future. Is it a completely new world the incident repair sector is operating in or does the past still provide some meaning for the future?

Keeping the faith

8 September 2021
Bodyshop, Covid 19, Environment, Insurance, Mobility, People, Supplier, Technology, Vehicle Repair and Words

Repairers and insurers have built up a new level of trust with consumers during Covid-19, but it is fragile and must not be taken for granted as the country begins to emerge from the pandemic.

That was the insightful message of the first post-summer ARC360 live webinar, held in association with I Love Claims.

The Data Jigsaw invited Jordan Chinn of the Innovation Group; insurance claims operations specialist Rob Hopkins; and Paul Sell of Trend Tracker to pick their way through the latest industry figures, but it was a far less scientific conclusion that resonated loudest.

Understanding

Rob said, ‘Customers have been very understanding of insurers and repairers who have been open with them about the challenges they’ve faced, and hybrid working has actually built up a new level of trust. It’s humanised the sector, with customers hearing dogs barking and children crying in the background during calls, but it’s fragile and we can’t take it for granted.’

He warned that fatigue of Covid-19 excuses is already setting in, and if businesses want to retain the ground they have made then they need to deliver service levels that are again being expected of them.

‘What we’ve been through has been remarkable, but customer perception is that everything is now normal again, and perception is reality so we have to respond to that very quickly.’

However, that is easier said than done.

Variations

It’s true that some consistency has returned to the industry; Trend Tracker has found that repair volumes are averaging 15% more than what they were two months ago, and fuel levels, which indicate traffic volumes, are at 85% of what they were in 2019 despite electric vehicles now taking a 15% marketshare.

But business planning remains incredibly difficult.

Although cars have returned to the road the traffic is less predictable, with commuting patterns spread out through the week. Weekdays remain less busy than they were pre-Covid-19, and the daily rush hour has extended in length, with fewer claims per hour.

School holidays have no doubt influenced this, but hybrid working remains a telling factor and could do indefinitely.

Hybrid working

Rob said, ‘The hybrid working environment has a lot more capacity and capability now, so the work commute has been disrupted and will remain that way. What we thought could never be done from home can be done from home, and although businesses will still have offices, they will use them in a different way.’

Furthermore, volumes continue to vary dramatically from region to region. While some regions are still quiet, staycation areas such as Devon and Cornwall, for example, have been inundated with work and in many cases the aftermarket has been unable to service it all.

Jordan said, ‘We have got an accurate capacity management policy in place, but we’re finding it difficult to manage volumes in the staycation hotspots because there just aren’t the bodyshops there. It’s difficult because not long ago repairers were trying to get more volume from work providers, but now they have too much volume and in some cases it’s a case of last in and first out.’

Supply

On top of this, the extreme disruption to supply chains is having a severe impact on the sector. With new cars in such short supply, the value of used cars has rocketed to never-seen-before levels.

That in turn has resulted in more damaged vehicles being repaired instead of written off, but this is not necessarily the good news for bodyshops it appears to be. The supply crisis has impacted spare parts too, with some taking 20 weeks or more to arrive. As such, repair costs have escalated.

Jordan continued, ‘We are looking to repair more vehicles, which is good news for repairers, but the parts issues mitigate any advantages repairers might get.’

Planning

Looking ahead, September could be a bell-weather month for the sector. Paul predicts it could be the best September on record for volumes, and has also identified other notable trends.

He said, ‘This could be the first month when more electric vehicles are sold than non-electric vehicles. I think in August it was 52%-48%, so we could see that shift. Also, the sale of commercial vehicles in still booming and I expect that to continue for the next three to six months.’

Paul estimates volumes climbing to 90% of pre-pandemic levels, but he admits that forecasting now is more of an art than a science, with historical data counting less than it did. Rob agreed.

He said, ‘We don’t dismiss historical data, some of it gives us a good basis, but what we see more of now are leading measures, predictors, whether it’s geographical or customer habits. Both are important, but there has been a shift to leading measures.’

ARC360, in association with I Love Claims, is supported by corporate partners BASF, BMS, Copart, EMACS, Entegral, Enterprise Rent-a-Car, Innovation Group, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, Sherwin Williams and CAPS; partners asTech, The Green Parts Specialists, Indasa and Prasco UK.