NABA has joined other state and national collision repair associations that have raised concerns about the intrusive practice of insurer mandated parts procurement programs.
“Lack of regulatory oversight allows insurers to take more and more control over the collision repair industry from influencing estimating databases, manipulating labor rates and controlling the repair process,” said NABA Director Norbert Zaenglein. “Repairers who believe that this will be the final encroachment into their business are seriously mistaken. The squeeze by insurers will be relentless, and claimants will pay the price in terms of repairs that do not restore the vehicle as promised under the policy of insurance.”
Problems for claimants created by a lack of market conduct oversight have been carefully documented by years of research into automotive glass claims settlement practices that were published in the book In Dangerous Hands: Automobiles, Insurance & Political Corruption in Nebraska written independently by Zaenglein who says that all states have ineffective market conduct regulation that gives insurers free reign over the collision industry.
State regulation of insurer’s claims settlement practices is seriously compromised, and that creates and sustains all of the foundational problems faced by today’s collision repair industry. “Without adequate regulation of the insurance industry it is up to shops to stand up to intrusive mandates by the insurance industry and get actively involved in fixing a very broken insurance regulatory process.” Zaenglein added.
Note: In Dangerous Hands is free in printable PDF format. Paperback copies are available on Ebay at cost plus shipping fee. For more information email email@example.com