Loss adjuster PCS is about to kickstart a massive cut in the cost of motorcycle claims by launching the country's first nationwide approved motorcycle repairer network.
Insurance Times has learned that the adjuster will launch the scheme on August 1, with Independent as the first insurer to sign up. The network is expected to handle as many as 10,000 claims in its first year, with other insurers signing up soon.
PCS has enlisted 12 repairer firms in the scheme already but will soon have 15. And it is currently negotiating with a national motorbike hirer to be a sole supplier of temporary replacement bikes while the insured's machine is being repaired.
It is also about to announce deals with parts suppliers that will slash the cost of motorbike spares. Spares are currently a huge cost to motorbike insurers. One insurer claimed a Honda motorbike costing £7,500 brand new would cost close to £50,000 to build from spares purchased at the manufacturer's list prices.
Nick Morrall, project manager with PCS, said: “The whole aim is to drive down the cost of motorbike claims. We will buy in bulk and we will be looking to provide discounts on parts and a much more sensible price for labour.”
Morrall insisted the network would be able to handle all makes and models of bikes, including classic bikes. He said several insurers were queuing up to join the network. “Independent is starting with us but others will follow very closely. They are ready to move forward with us. We will have a repairer network ready to rock ‘n' roll from August 1.”
Independent has a £5m motorcycle book. NU is the country's biggest bike insurer, with Equity Red Star close behind.