Independent research company Trend Tracker, has released its latest report on the UK body repair industry which highlights rising costs and capacity problems.
The number of UK accident repair centres has fallen by 20% over the last decade from 3,950 in 2008 to 3,162 in 2018, and Trend Tracker predicts a further decline over the next five years. A shortage in repair capacity, combined with a 33.5% overall increase for insurance-related repair costs over the past five years, presents a significant risk for motor insurers profits in the years ahead.
The cost of parts alone on insurance-related repairs has risen by 40% in the past five year period while new technologies in vehicle design, including Advanced Driver-Assistance Systems (ADAS), have also driven up repair costs.
The report concludes that it is critical for insurers to work with their body repair partners to ensure that repair capacity is maintained and that customers get a safe high quality repair.