Insurance Focus
Peter Smith, Head of claims
This month, we talk to Peter Smith, head of claims at Equity Insurance Group. Peter explains the insurer’s repair network strategy – a partnership with WNSA and DWS – and reminds us all that customers ‘vote with their wheels’.
In your opinion, what will be the impact of the ban on referral fees? How will it affect the insurance/repair industry as a whole?
In almost all respects I support the personal injury referral fee proposals put forward by Jack Straw. Unfortunately some of the features will be altered through the legislative process and I’d imagine that those with an interest in this revenue stream are well advanced in setting up alternative methods. Overall I’d anticipate some reduction in claimant numbers and cost but not the material change consumers and insurers need.
Do you have a telematics-based (or similar) offering, or plans to introduce a scheme?
Equity has underwritten telematics-based products for some time. The recent surge in interest seems to arise from BMW’s proposed plans to install the technology in models from 2015.
If you could start from scratch and were told to set up a successful bodyshop operation tomorrow, what would be your top three priorities?
Apart from sourcing a strong accountant, the following:
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Sufficient bodyshop dimensions to accommodate commercial vehicles – to provide fleets with a better option which caters for more of their vehicles.
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Gaining accreditation – the bodyshop achieving PAS 125 and its technicians suitably qualified.
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Securing parts supply partnerships with manufacturers in order to provide consistent and sustained levels of repair turnaround.
I’ll add a fourth – to employ, train and reward front of house staff around how they represent the brand.
What is Equity’s view for the future for the accident repair industry?
Two keys. Firstly, getting the ‘C’ right in the B2B2C chain. Whether it’s insurer and repairer, or manufacturer parts division and bodyshop, the businesses linked in the repair process have got to remember that the end customer’s mobility is what matters and that those customers will vote with their wheels if this isn’t done well. Secondly, increased ability to repair with quality and cost effectiveness, and reducing write-offs. It concerns me where total loss salvage could end up, and it also concerns customers, such as bikers, that the industry seems too eager to write off their vehicles.
Motor claims are said to be down by as much as 20-25%. Is this Equity’s experience and what effect is it having?
We’ve refocused our own portfolio which has reduced claim numbers by itself. However, we are seeing some reduction in the market generally, particularly in the number of personal injury claimants, which has to be a good thing.
Equity has been in the news over the past year following its reserve strengthening. How has this affected your approach to repairs?
The reserve strengthening issue actually dates back more than 18 months now and is very much in our past. It was essentially around the increased number of personal injury claimants. Equity has a strong brand though and our remediation plan delivered tangible improvements. We’re now focused on the future and for repairs this means showing our customers we fully understand their vehicle and mobility needs by getting them back on the road even more quickly.
The relationship with WNSA was announced during the summer – what was/is the thinking behind this?
We wanted our claims operation to become much closer to the repair and to ensure our customers see the service is joined-up – so they don’t feel as if they’re being passed around. Our customers now receive more regular updates and in the event they contact us, we have online repair tracking so we can deal authoritatively with any queries. The number of bodyshops in the WNSA network is a real advantage for customers and brokers in terms of travel distance. At the same time, we partnered with WNSA for the majority of our engineering requirements. We see image-based desktop engineering as a real win to reduce the time and inconvenience involved in arranging so many traditional physical inspections.
What is the Equity approved repair network structure?
For cars and vans, we have strategic partnerships with WNSA and DWS which gives our customers great geographical coverage, guaranteed courtesy vehicles and five-year repair guarantees. For our affinity schemes, we have slick arrangements in place with manufacturer bodyshops. For motorcycles, we offer the specialist options bikers tell us they want via 4th Dimension, Carole Nash and BLD.
IAG’s UK operation comprises Lloyd’s insurer Equity Red Star; affinity broking specialist Equity Insurance Partnerships; commercial brokers Barnett & Barnett and NBJ, and niche motorcycle broker Bike Team. Describe Equity’s proposition within the accident repair market and its aims.
Equity is a genuinely specialist motor insurer, with a deep technical capability across many vehicle classes: from motorcycles, cars, vans and fleets, to agricultural, classics and other niche types. We’re really into our wheels and we identify strongly with our customers, brokers and affinity partners who cherish and rely on theirs too. For all of them, we aim to ensure a quality repair in the minimum key-to-key time but for each we also strive to appreciate their personal bond with their vehicle and demonstrate the know-how needed for the right solution.