The January 2012 CPI Data was released by the federal government. The trend show slight increases in Auto Body Repair while Auto Insurance dipped very slightly.

By: Ernie Bray, CEO AutoClaims Direct, SCLA

Not long ago the insurance industry regarded outsourcing any function as the option of last resort. Insurance companies believed that independent firms were less skilled and provided a shoddy work product. These “vendors” were utilized only in certain situations and one hoped for the best but typically received slow, substandard service.

Today, many insurers are forced to rethink their vendor relationships because the economy is in such turmoil.  With downsizing to meet cost cutting measures, insurers have seen many experienced veteran workers leave their ranks in large numbers.  Consequently, outside independent firms have actually become a welcome, viable extension for an insurer as many of these firms have more experienced personnel than an insurer’s staff.  Nowadays, outside firms have more advanced technology, are more nimble, have better training and experience than an average insurer’s adjuster.

Over the past few years, I have seen a paradigmatic shift as new and innovative thinkers begin to take leadership positions in claims departments nationwide. The traditional way of thinking mired in a dictatorial, adversarial  relationship between insurer and vendor is giving way to a new era of partnerships for success.

I don’t believe in vendor relationships but rather in forging partnerships.  For an analogy let’s take the root of the word vendor.  I think of a vending machine. I’ve seen people kick them, tip them over, shake them, all for a quick snack that’s quickly eaten and forgotten. This is similar to how some insurers treat their vendors because they don’t see value in the service they provide but look at it as a quick solution that is easily forgotten. They pay a cheap fee, pick the flavor of the moment and are cost driven while failing to see the “big picture.”

At my firm we think differently!   We thrive and enjoy partnering with insurers with vision and new creative ideas. A partnership to us is one where trust is earned and the business relationship is one of mutual respect on an equal playing field. The adversarial/ dictatorial approach full of threats and ultimatums are abandoned in favor of teamwork with a common goal. In this way, both parties fully understand each others’ business goals and strive to achieve them through combined intellectual resources and ingenious ways to solve various problems.

With the variety of clientele we serve, there is a distinct difference between the majority of our partners compared to the small group who only desire a “vendor” relationship.  Partnering allows us to fully maximize our services to benefit our clients’ claims offices resulting in amazing CSI Scores and KPI’s that are off the charts.

As leaders within the industry, I am truly excited about the trend of acceptance of the “Partnering for Success” method. In the long run, a relationship of mutual respect, understanding and teamwork always trumps the carrot and stick method of the vendor relationships of a fading bygone era.

Ernie Bray, CEO of AutoClaims Direct was recently awarded the designation of Senior Claims Law Associate. The SCLA designation is widely recognized within the insurance industry as a mark of professional achievement.  This is the ultimate designation a claims professional can earn and is achieved by completing the Legal Principles program and three of the other five AEI programs: Liability, Property, Workers Compensation, Automobile Claims and Coverage, and Claims Fraud Investigation and Defense.

“I’m honored to receive the SCLA designation and believe the program is phenomenal. I highly recommend it to all of my colleagues in the insurance claims industry” stated Bray. I’m a big believer in always improving one’s professional education as the industry is ever changing and it’s essential to stay on top of all legal issues.

In addition to his duties leading AutoClaims Direct, Bray is also a Certified Auto Subrogation Arbitrator, Expert Witness for the WestLaw Roundtable Group and Associate Member of the American Bar Association.

ACD’s Metro Based field staff are doing amazing work! One of our team members, Sergey in Northern California is pictured here photographing a vehicle.  During January of 2012, the field staff’s cycle time was .4 days faster than a year ago. Average appraisal severity was lower by $329.00  Recycled parts use is up 5.3%   Great work!

ACD’s CSI Surveys in January provided some great feedback. Through an analysis of random surveys AutoClaims Direct again had a positive score on every one!  Comments this month included….

Very Polite and Informative

Quick and I’m very happy with the process

Accommodating to my schedule

Prompt response very pleasant and professional

On time and very professional

—–Great job to all of you!

In this article from InsuranceQuotes.com,  the Insurance Research Council found that the nationwide cost of auto insurance claims rose between 2008 and 2010.  It may be a statistical anomaly or a trend. ACD’s Ernie Bray is quoted in the article, “Anytime you have tough economic conditions, you have a lot more people trying to exaggerate their claims in order to cash in,” Bray says. “They see insurance claims as a way to get a little extra money, and this drives up the cost of claims. Someone has to pay for this, and ultimately it’s the consumer.”

Click here for the full article.

The February column by ACD’s Ernie Bray was released today in the Carlsbad Business Journal…  Click here for the link.

Founder and Chairman of Mercury Insurance, George Joseph has pushed hard and has again got a ballot initiative qualified for 2012.  It would allow insurers in CA to base auto rates on whether a customer has been insured previously which could lead to discounts. Current regulations don’t allow insurers to charge varying rates based on a customer having  been previously uninsured.  The pros of the ballot initiative would mean that those who have been insured continuously could potentially receive lower rates while on the other hand, those who failed to maintain auto insurance could see rates jump. 

Click here for the full story.

VP of Operations, Brian Bray demos what crumple zones look like and how they work….

In this article we found, Collision Repairers, Consumer Groups and OEM dealers are speaking out against any attempt by California legislators that would bring legislation stating Aftermarket parts are functionally equal to OEM parts. Click here for the full story.