The incident repair market has been permanently altered by Covid-19, although the nature and extent of that change is still uncertain.
The second ILC/ARC360 Great British Motor Claims Survey found that nearly three quarters of respondents (73%) believe that impacts on supply and demand in the last year and more have changed market dynamics forever.
However, what that change will look like is less clear.
Respondents to the survey suggested that one result could be higher wages brought about by staff shortages, while bodyshops might also have to get used to steeper costs and longer lag-times for parts and materials.
It is also believed that certain trends that were underway even before Covid-19, such as consolidation and manufacturers taking more control of parts supply, will accelerate post-Covid.
But, ultimately, there are still too many variables to know for sure which changes will remain and which will revert.
The pandemic is hopefully being brought under control now, but market conditions continue to fluctuate while no one yet knows the full impact of Brexit or the legislative updates around small claims.
‘This is a moving target and will continue to ebb and flow between consumer, insurer and supply chain,’ said one respondent. ‘This will always be the case especially when there is an open market driven by competitive behaviour.’
Click here to download the full survey.
