Many industry observers have questioned both the method and timing of the move and also the long term implications in terms of competition, customer choice and repair quality. The move has also attracted the attention of the national press, with the Irish Independent running an article on its handling and implications, as well as management and funding behind the repair management company.

 

It appears that previously approved repairers received an email in March questioning repair costs, but providing no supporting evidence. This was followed by an official 3 months termination notice in June. However, approved bodyshops say that referrals ceased long before the 3 month period was up. This caused serious problems and raised questions as to how and why such successful and productive long term business relationships were discarded.

 

The new agreement effectively outsources the Aviva claims management process and gives ARM a huge element of control in its repair network. Many believe this raises many questions with regards to potential customer steering issues, accountability in the repair process and that it may open the door to credit hire companies to profit from third party claims.  

 

Ultimately, of course, it is the care and repair quality that the customer receives that is at the heart of the issue. This move by Aviva is further evidence of how insurers may push to the boundaries of competition regulation in order to increase control. Independent bodyshops may provide excellent customer service and first class repair quality and the motorist is perfectly entitled to insist on the bodyshop of their choice, so it is becoming more vital than ever for repairers to get this message across.

 

Other insurers will be closely observing the new Aviva arrangements and if some follow suit, could this mean the end for the independent bodyshop sector as we know it in Ireland? The proof will of course be in the results and there is no guarantee that Aviva customers will ultimately be satisfied by their experience. The company has in previous years sought efficiencies through outsourcing its call centre overseas, an experiment that proved to be short lived.  

 

The long term question is whether it is best for the industry to have a business model where there is a trusting relationship and open communication between repairers and insurers, or one where third party intermediaries play a major role in the claims and repair process.