On Tuesday, bodyshops across the UK received notification of another price increase, this time for estimatics. Auda Enterprise Gold, the solution required to comply with the vast majority of insurer and accident management back end solutions is putting in a 5% increase across the board from January 2022.
NBRA estimates this will take another £1.7M out of repair industry profits in 2022 largely ithout warning or choice. Had the former Repairer Estimation Award winning company’s increase been 15% repairers would have had little option to accept it.
Of course Audatex need to show a return and growth for their shareholders just like any other business, they can put their rates up just as lease companies are, rental companies are, paint companies are, consumables, waste removal, energy suppliers, landlords, oh and guess what bodyshops need to give some cost of living increases to loyal staff who have to pay their increased bills at home.
Bodyshops are seeing inbound cost inflation like never before, have more work than ever before, yet are seeing almost zero contractual terms improvements.
We understand that insurance is a highly competitive, cut throat world, but the man on the street MUST pay for all of these increases through their insurance premiums, especially as they make the switch to EV. The insurance industry has to recognise what is happening, act and move pricing together and pass some down to a repair industry in desperate need of oxygen. Either that or start to absorb all of the non-repair costs such as estimatics (As LV= have – bravo), mobility, collection & delivery, storage etc. etc.
NBRA believe during the course of 2021 Admiral & NFU Mutual are the only insurers (plus LV= who stopped their lower rate) who have actually listened to the repair industry and put in at least a rate increase that reflects inflation and we congratulate them for that. No others have to our knowledge? If we are wrong let us know and we will gladly add their names to this embarrassingly short list.
