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J Armstead
May 5, 08 - 3:20 PM |
SCRS: What the Glass Industry Already Knows Too Well
This is re-printed by permission of Dan Risley, the Executive Director of the SCRS.
See this link for information on the SCRS and this particular statement:
http://www.scrs.com/PR-PDFs/PR%202-18-08%20INS%20CO%20ABUSE%20TRENDS%20R1.pdf
The Society of Collision Repair Specialists (SCRS) blasted the insurance industry for "blatant disregard" for its members and cited 13 questionable business practices that have driven a wedge between the two industries. The list was compiled following a survey of member and non-member repairers nationwide.
The practices include:
• Deceptive referral practices of a malicious nature that cause consumers to question the quality, services and integrity of any repairer that is not a part of an insurer's direct repair program (DRP).
• Disparaging statements made by some insurance company employees to consumers in an effort to apparently "steer" them to one of their DRPs, referral or concierge-type shops. "In our opinion, this is in clear violation of the laws in place in many states that prohibit an insurer from steering customers to a specific repair facility," SCRS says.
• Secondary steering tactics in which field appraisers write a repair estimate that is as low as 50 percent of what the repair shop has written. When consumers object to the low estimate, some appraisers say, "If you go to XXX shop (their company DRP, referral or concierge-type shop) they can fix your car for our figure." In many cases, the end cost is equal to or greater than the original shop's estimate.
• Vague and ambiguous remarks about repair "delays." Various insurance company employees have time and again insinuated or stated to a consumer that the repairs will take longer if they are not done at one of their DRPs, referral or concierge-type shops.
• Refusal to reimburse for proper repairs. "Certain field appraisers have developed their own terminology, as well as redefining, what a "proper" repair is," SCRS says. "As it relates to an area of the vehicle that may not be visible without removing a trim panel or floor covering, it seems as though various field appraisers have made the determination that finish work on a "non appearance panel" is not necessary. In our opinion, this goes firmly against the contract language, which calls for the repairs to be made to 'pre-accident function and appearance.' "
• Misleading service offerings or insinuations in the name of consumer service. Consumers often are duped into using the insurer's DRP, referral or concierge-type program, which leaves consumers with little to no information as to where the vehicle will be repaired, what the amount of the repairs will be or the method of the repair. "It is our opinion that the owner is left with little or no say in any of these important decisions," SCRS says. "We are gravely concerned that through all of their marketing efforts, some insurers have convinced the state insurance departments or regulatory bodies that this very process brings value to the consumer, when in reality, the recent surveys by SCRS as well as J.D. Power and Associates indicate otherwise."
• Database manipulation and representing it as "market acceptable processes." "The manipulation of the databases used in the various estimating guides is a practice that cannot be tolerated," SCRS says. "At least one insurer has convinced one information provider to alter their system to default to an arbitrary figure of 50 percent of the actual refinish time required for a proper repair. This is all without merit, and goes firmly against the vast research and posted times developed through time studies and other means by the information system provider."
• Intimidation techniques and threats to keep DRPs, referral or concierge-type shop operators from discussing the details of the various programs. Some insurers seemingly intimidate their participating shops from discussing the values and faults of the programs through the fear of retribution, SCRS said. Repairers said they fear losing work by discussing these unfair practices surrounding the questionable repair methods used by many of the inexperienced appraisers and adjusters handling these claims.
• Utilizing inexperienced claims staff to negotiate repair hours and methods based on a consumer's loss. Some insurers employ a significant number of inexperienced claims personnel. "This causes serious delays and issues when trying to negotiate a fair claim settlement between an inexperienced claims adjuster and an experienced collision repairer," SCRS says. "The tactics employed by these inexperienced staff members causes production delays for the repairer, parts issues and overall increased cycle time which lowers customer satisfaction due to obvious missed or ignored items."
• Denigrating a collision repairer because of the lack of a DRP, referral or concierge-type program relationship. Some insurance personnel seemingly employ tactics and word tracks to leave doubt in a consumer's mind as to the quality of the shop when they don't participate in one of their DRP, referral or concierge-type programs. SCRS said these include such verbiage as: "Due to your decision to take your car elsewhere from our network, you may encounter delays and incur additional repair costs or rental car expense that we will not be responsible for."
• Prey on the consumer's lack of knowledge in their rights or repair expectations to gain leverage against the informed repairer. Most consumers don't have the skills or experience needed to make sound collision repair decisions without guidance. "Unfortunately, it appears as though some insurers take this situation and use it in their favor," SCRS says. "The end result is a consumer who is coerced into a situation that may not be in their best interest. In fact, if repairs are done in a substandard way, the consumer is oftentimes at a loss on how to rectify the situation.
• Unnecessary delays for estimate completion and authorization. Some insurance company adjusters or appraisers don't have the authority or the skills needed to write an accurate or complete estimate of the damage. "Shops must go through several layers of management in order to get simple required procedures that are missed on the estimate," SCRS says. "Our members also indicated that to completely fix the vehicle, they must write many supplemental increases because the original insurer's estimate was grossly incomplete."
• Refusal to negotiate in good faith. Some insurers arbitrarily state that repair market conditions prohibit reimbursement for certain procedures, labor rates and other required work (without a proven valid survey performed in those market areas). "This appears to merely be a negotiation tactic on the part of these insurers, to not properly reimburse the repairer for the required work," SCRS says. "In particular, there are some insurers that grossly disregard the vehicle manufacturers' repair procedures and recommendations, and in fact, have flat out refused to reimburse for those procedures frequently."
Some insurers are using word tracks and their size to influence or intimidate consumers into utilizing their programs or to follow their misleading direction, SCRS said. "It is unfortunate that seemingly these insurers have no consideration for ensuring their customers receive quality, cost-effective repairs and instead convince unsuspecting consumers to accept what has been proven in many cases to be inferior repairs for what appears to be driven by price-only decisions," SCRS says. "In fact, there are a number of instances where insurers have purchased a "repaired" vehicle back from a consumer in order to minimize the issues that improper repairs (from their recommended shops) and the refusal to pay for needed operations has seemingly caused. SCRS fully supports those repairers that have invested in the efforts of bringing to task perpetrators for their unacceptable tactics and gross disregard for proper repairs. We fully support any repairer who stands up for what they believe has been an injustice to their business."
"It is totally unacceptable for any industry segment to utilize bully tactics in an effort for their own gain," SCRS says. "It is the obligation of all insurance companies to make their insured's as well as their claimant's whole after such a loss. This means that they must fully compensate those directly involved to ensure that a cost-effective, high-quality and timely repair be performed. SCRS is extremely disappointed in the tactics of a select few and fully recognizes that there are a large number of insurers and repairers alike that work together each day to ensure the goals of high quality, timely and cost effective repairs are performed."
Repairers and insurers need to find some common ground and work together to prevent these types of activities from happening, according to Dan Risley, SCRS executive director.
"We are not aware of one insurance company that would advocate the activities highlighted," Risley says. "I don't think there are many collision repairers that would advocate performing improper repairs or committing fraud, but it can happen when you have employees that you can't watch every second of the day. While most insurers will acknowledge many of these issues exist, not taking corrective action is turning a blind eye to a problem that is growing out of control."
Repairers should better educate their respective state departments of insurance to help facilitate positive change, he said.
"Recently, the Ohio Department of Motor Vehicles contacted SCRS and asked for permission to post our press release on their Web site," Risley says. "They wanted to educate consumers in Ohio."
SCRS needs to continue to bring these issues to the surface, he said.
"What we are trying to do is to educate the entire industry that these things are happening, it's unacceptable and all of us need to play a role in changing it," Risley says.
* * * * * * * * * * * * * * * * * * * * * * * * * *
If you want to discuss real solutions to change our industry, I have developed a 3 Part Plan that will work. I will not ask for your money, only your participation and commitment. I have years of experience that have prepared me to successfully address and correct these abuses.
You must be willing to accept the fact that the changes we seek will take time to effectuate and that others may benefit from your sacrifice and commitment. I will only divulge information to shop owners and you must leave your name and phone number in an e-mail at the address below. For purposes of discussion, please keep of print-out of the 13 issues addressed in the SCRS statement above.
I will personally reply to each and every inquiry.
Enough is enough, it's time to "MAKE CHANGES."
For confidential offline discussion, contact me at:
j_armstead_glass@yahoo.com
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howie
May 5th, 2008 - 4:40 PM |
Re: SCRS: What the Glass Industry Already Knows Too Well
I'm in..
.
Good lookin' out.
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