Sometimes adjusters and appraisers are forced to deal with thefrustrations that can stem from working through the collision claimprocess. But there are a few forces out there working to make surethe auto claim experience runs a bit smoother and making the autophysical damage claim process easier on everyone. There also arenew resources available that are stepping up auto claim efficiency,drawing lots of praise from policyholders and ensuring thateveryone walks away from the experience with a positivefeeling.

Technology and Customer Service

There are a few new tools surfacing that are using to improvethe quality of communication between insurer, repair shop, andcustomer. Autochex is a customer satisfaction evaluation tool thatthe auto repair and insurance communities use by conducting a shortsurvey over the phone with insureds who have had their carsrepaired or who have filed a claim. The system deals mostly withthe auto physical damage side of the business and aims to find outhow satisfied customers are with the experience and the entireclaim process.

Autochex also takes better communication a step further with asystem called AutoView, which applies to both the shop and to theinsurance company.

“AutoView is really a way of getting the information out to thestakeholders in the field so that they can see the results of thesurveys. Basically, they log into a secure web site that is updatedwith information every 24 hours, and as we conduct surveys, we postthe results right up to the site,” said Ray Kihara, director ofcustomer service indexing at Autochex. “In conjunction with that,we also have an e-mail alert process where if the customerexpresses some kind of dissatisfaction with the repair or the claimprocess, we can immediately e-mail the [collision repairer orinsurer]. It is much quicker than postcards or other methods thatuse standard mail.”

Like most industries today, collision repair is changing withthe times to help increase customer satisfaction andproductivity.

“With vehicles becoming more and more complex, I think it'sincumbent on both the shop appraisers as well as the insurancecompany appraisers to really be current on the correct repairprocedures,” said Greg Horn vice president of industry relations atMitchell International. “That is going to become more and moreimportant as time goes on, because now there is technology inmanufactured cars that cannot be produced in the collision repairenvironment.”

Horn would know. He is the author of Mitchell's 2007 IndustryTrends Report for this year's third quarter. He made it clear thatas an information products and software provider for the collisionrepair industry, Mitchell has a significant interest in beinginvolved with evaluating customer service. Their quarterly reportoutlines the issues and trends that are impacting the autocollision repair industry by focusing on a sampling of more than500,000 estimates where aftermarket collision parts had beenspecified on the original estimate and the effect they had on cycletimes and supplements.

“We are really involved in measuring customer satisfaction andwe have seen that customers are satisfied when you make yourpromised delivery time,” said Horn. “Claimants are very keen onbeing informed, so much so that if you miss a delivery time, theywill actually give you a pass as long as you keep them informed andtell them what is going on with the repair.”

“It has made the process faster to the point that we can contactthe customer sooner after they have picked up their vehicle orreceived payment for their claim and really measure theirsatisfaction,” added Kihara. “We know that the faster we get tothem, the faster the collision shop or the insurer can respond totheir complaint, which in turn means a better chance for recovery.It's a simple process. We get a phone number, we call the customer,we find out how happy they are, and then we report back to thepeople who can affect the satisfaction or the recoveryprocess.”

Direct Repair to the Rescue?

One thing about collision repair claims that everyone can relateto is the feeling of, “What is going on with the car?” Oneinsurance company is making strides in keeping the policyholder inthe loop when it comes to this aspect.

Nationwide Insurance has offered the Blue Ribbon Repair Programfor almost 15 years and currently works with approximately 2,500shops in all of the states that they do business. Direct repairprograms also benefit all of the involved parties through a systemof checks that monitors the performance of the repair shops thatparticipate.

In addition to the program, Nationwide also offers a servicecalled AutoWatch, a tool that allows the customer to follow therepairs on the web with digital images. This concept has paved theway for insurers to go as far as guaranteeing customersatisfaction.

“The camera doesn't lie,” said Horn. “If you have the repairestimate spelled out and you know someone is looking at thatperiodically, the repair is going to be carried in out inaccordance with how the estimate was written.”

Repair shops have good reason to stay in the graces of insurers.Large carriers recently began limiting the number of collisionrepair shops they use as part of their direct repair programsbecause for the claim adjuster, the process of meeting theirassigned number of claims becomes a much easier task when theydon't have to deal with an unwieldy number of shops

“For a large carrier, this consolidates the work that theadjusters have to do by making fewer calls on body shops,” saidCharlie Baker of Ford Motors' Collision Certified Repair Network.“If they are required to look at seven adjustments a day, it is alot easier for them when they only have to go to two shops. If theyhave to go to seven different shops in a city where traffic is adisaster such as Los Angeles or Atlanta, it will be very difficultfor them to get around and complete their job requirements.”

Direct repair programs like State Farm's Select Service program,Nationwide's Blue Ribbon repair program, or Progressive's ConciergeService are making it easier for insurers, repair shops, andcustomers to stay in contact throughout the claim and repairprocess.

“We allow the customer to go wherever they want,” said TerryFortner, associate vice president of claims at NationwideInsurance. “But the advantages of being a part of our Blue Ribbonprogram and having a claim handled through one of our shops aregreat. We have detailed contracts with each shop, and wecommunicate electronically with them, which includes images of thevehicle as well as estimates. But what is most important to thecustomer is that we guarantee the repairs as long as the customerowns or leases the vehicle.”

Fortner went on to describe how auto repair facilities arechosen in Nationwide's program.

“The shops are being pre-qualified, which means there arestringent requirements that they must meet from an equipment,facility, technology, and staffing standpoint,” said Fortner. “Wehave a very tight quality assurance program to monitor theperformance and service of the collision repair facility.”

The advancement of technology, communications, and customerservice in the auto collision repair industry has led to anincrease in the quality of work that the repair shops produce.

“These kinds of programs have been to the advantage of thelarger insurance companies today because they want to consolidatetheir work into fewer shops,” said Baker. “With Select Service,State Farm cut the number shops they were using for the programalmost in half in an effort to only do business with shops thatthey have confidence in. That way, they know quality work is beingdone on time and the likeliness of fraud is being avoided. Yearsago, insurance companies thought it was advantageous to have lotsof shops competing for the work because they believed it would keeplabor costs down. While that may have been true, it did not alwaysmean that quality repairs were being completed on time. The smallershops cannot afford the training and the sophisticated equipmentthat is required today, and the insurance industry is recognizingthat.”

Isn't that what everyone is looking for in this industry?Quality work, done on time. Direct repair programs seem to have itright when it comes to covering all the bases in auto physicaldamage claims. Since claim adjusters are stretched thin andoverloaded with files, any help they can get is icing on thecake.

This topic and other collision repair trends will be discussedin-depth at the International Autobody Congress and Exposition(NACE) Conference, which takes place Oct. 31-Nov. 3, 2007. Theconference is meant to be a resource for a wide range of collisionrepair industry professionals and will feature sessions recommendedfor insurance professionals.