Minnesota Governor Tim Pawlenty signed into law on May 8th, Senate Bill 3508. This new law prohibits insurance companies from disregarding labor and repair operations that are identified in industry accepted auto damage estimating systems. For more information visit this link.
Monthly Archives: May 2008
Progressive to minimize use of spot paint/partial panel refinish.
Based on recent article from the ASA. It was reported that members of the organization recently met with a Progressive corporate process manager. In an effort to improve industry relations with repair shops, it was indicated that Progressive will minimize the use of spot paint/partial panel refinishing except on case by case basis such as minor chipped paint on panel edging. With Progressive apparently adjusting their guidelines based on the ASA report, the collision repair industry will likely be looking for other carriers to make this change as well.
The Farm looking to raise rates in CA due to upward claims trend.
State Farm has just filed a request to increase rates in CA. Click here for the story.
Solera Holdings, Inc. parent company of Audatex, sees revenue climb 13.4%
Solera Holdings, Inc saw third quarter revenue of $138 million. Click here for the whole story.
Are economic conditions affecting collision repair industry suppliers?
According to this article, a leading national automotive paint distributor indicated a weakening demand for automotive paint due to slowing economic conditions. Click here for the story.
PPG transforming collision repair shops from solvent based to waterborne technology in CA.
With the new California VOC regulations on the horizon taking effect in stages, PPG is moving forward in converting shops statewide into the use waterborne basecoat vs. the solvent based solutions that emit VOC’s into the atmosphere. Click here for more on PPG’s conversion program.
Top 10 consumer complaints of insurance companies.
Recently the NAIC released a report of the top 10 consumer compliants compiled from state insurance departments nationwide. It appears the top three reasons year in and year out are consistently the same and are all Claim related..
1. Claim handling delays
2. Consumer’s claim is denied.
3. Consumer not happy with settlement amount.
Source: NAIC.ORG with permission.
Mercury Insurance combined ratio climbs compared to last year.
Mercury General’s combined ratio, which is the percentage of premiums an insurer has to pay out in claims and expenses, was 95.4 percent in the first quarter, compared with 94.5 percent a year ago. A lower combined ratio is better. Mercury also suffered a net loss during the first quarter of 2008. Click here for more.
We’re 1/3 of the way through 2008. Here’s a current data check.
Where has the year gone? 2008 is 1/3 of the way over and data continues to flow in regarding current collision repair data. When comparing the first 4 months of 2008 to the same period in 2007, the following numbers stand out:
1. Average auto damage appraisal severity down $100.00 per loss.
2. Body labor hours have decreased 2.27 hrs on average per vehicle repair.
3. The average age of loss vehicles are 3.5 months older than a year ago. This may be evidence that owners are holding onto their automobiles longer.
4. The percentage of vehicles deemed total losses has decreased 3.29% this year
5. Average severity of comprehensive claims has increased 1.2%
Source: AutoClaims Direct Inc. 2008
LKQ Corp profits nearly double compared to a year ago.
LKQ Corp appears to have benefitted from a slowing economy which has resulted in insurers focusing on cost containment and use of alternative part usage.