Satisfaction with NZ insurers declining – survey

The use of an outdated pricing model is contributing to a decline in satisfaction with the way vehicle claims are managed according to the results of a new survey. New research released by the Collision Repair Association ( CRA), an industry body covering hundreds of panel beaters from around NZ, has found increasing levels of dissatisfaction among its members with the way insurers process consumer claims. CRA general manager Neil Pritchard says insurers are using a pricing model which is 15 years old and does not take into account the significant advancements in vehicle technology in that time. “The current model uses an estimate on the amount of time it would take to say repair a specific part of the vehicle from a rate card which is well over a decade old. Panel beaters are remunerated based on this time estimate. “The obvious flaw in this practice is that in the past 15 years vehicle safety tech has advanced so much that parts of the vehicle may take significantly longer to repair than they did in the past. “A rear tailgate exchange on an older model vehicle used to be a simple enough procedure. Now two employees, trained in replacement of electronic componentry as well as panel repairs are required. “This particular task on a modern vehicle could need new wiring looms, cameras, glazing, self-closing and, opening door mechanisms, etc, making it a very time consuming process. “Increases in administration demands, health and safety requirements, compliance costs as well as the outdated pricing model used by the insurance industry are all adding to the overheads of panel beaters and resulting in delays of up to eight weeks or more for repairs,” he says.