Concordance accuses insurers of squeezing car repair supply chain

Accident management company Concordance has welcomed the findings of a Channel 4 Dispatches investigation of the car insurance industry that has accused insurers of putting profits before lower premiums for customers.

Concordance LLP chairman Conrad Murray said the cost pressures insurers exerted on repairers led to inevitable cost cutting in car repairs.

“We know this because we see poor repairs come back to our PAS 125 approved repair network,” Murray said.

“The generic supplier agreement model with under-the-table deals on parts and paint is fundamentally flawed. Squeezing the supply chain upstream or downstream is detrimental to fair competition and just brings costs elsewhere to insurers and their policyholders.

“One has to ask how bad the reputation of the private motor industry can get before real action is taken by insurers to address all that is wrong in the system.”

Dispatches alleged that insurers of not-at-fault drivers were hiking the cost of car repairs payable by insurers of at-fault drivers following an accident, and “steering” customers to use mechanics approved by the insurer and reduce car repair costs as much as possible for their own at-fault drivers through the use of approved mechanics.

The programme also alleged insurers encouraged their approved mechanics to use cheaper generic replacement parts and paint on damaged vehicles rather than original manufacturer parts and paint.

Insurers and the ABI rejected the allegations.