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Crash Course 2018

Addressing Repair Complexity with OEM Certification Programs

It’s easy to forget how far automotive safety has progressed in just the past few years.  Not long ago, demonstrably beneficial features like automatic emergency braking, forward collision warning and blind spot alert systems were limited to luxury cars – if they were available at all.  Today, even entry-level vehicles come equipped with standard safety features, which are expected to provide consumers with unprecedented safety benefits as the level of adoption rises.  And that’s just the first wave – as the cost and capability of telematics, sensor technology, and mapping evolve, we’re expecting an even higher state of sophistication in the not-too-distant future.

Consumers are taking notice: AAA recently reported that…

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...at least 70 percent of vehicle owners would recommend ADAS technology to other drivers.  However, the AAA study highlighted the critical importance of educating drivers about how their ADAS systems function – a factor that’s just as important when it comes to repairing ADAS-equipped vehicles.

Figure 1

Based on the reasonable assumption that the increased availability (and appeal) of these new safety features will drive further demand, questions are mounting about vehicle repairability and the processes through which safe and proper repairs are made. And, the answers to these questions will impact automakers, insurers, collision repairs, and consumers alike.

Vehicle complexity and today’s accidents

The number of vehicles involved in accidents annually in the U.S is increasing. Estimates from the National Safety Council and CCC Intelligent Solutions (CCC) suggest that we are nearing about 24 million each year, after dipping as low as 17.3 million in 2008.  And while there is early evidence that new safety features will reduce frequency in the long term, these systems are changing the types of accidents that do occur today. For example, at CCC we compared collision losses for two high volume 4-door sedan vehicles by primary point of impact. (See Figure 1 above).[i]

The data about these vehicles suggest that when a vehicle claim is made, there is a resulting difference in the types of damage on vehicles equipped with ADAS.  Not surprisingly, such data suggests that the ADAS-equipped vehicles have a lower share of front impacts than those without.

These more sophisticated vehicles can be costlier to repair as well. Safety features and more sensors and cameras can now be found throughout the vehicle. These more sophisticated vehicles can be costlier to repair as well. Safety features and more sensors and cameras can now be found throughout the vehicle. While the average cost per replacement part overall grew about 4 percent since 2013, the average cost per camera grew 3 percent and the average cost per sensor grew by 28 percent.[ii] And, there’s an even greater cost associated with the labor to remove, install, and calibrate cameras or sensors post-repair.  

Addressing a changing repair landscape  

With increasing vehicle complexity and repair costs, car manufacturers have started to take concerted action with the repair process, with most having implemented or announced certified collision repair networks. And, while OEM-certified programs are gaining momentum, these networks can be difficult for automakers to scale and manage; and for shops interested in participating, certain requirements and performance metrics could present workflow modifications.

 That said, optimizing OEM-certified shop networks can be well worth the effort when you consider some of the potential benefits. For example, there is a greater likelihood of a safe and proper repair because the shop has made the investment in systems, equipment, and technician training.  Moreover, within a certified program, participating shops may be more likely to access and utilize OEM repair procedures and specifications.  Although there is no guarantee that the shop will be more efficient, there is an inherent expectation that the vehicle will be repaired in a timely fashion. And based upon historical data, reducing cycle time is directly related and proportional to increased customer satisfaction.

Promote, scale and manage your certified shop networks

Imagine there is an accident involving one of your vehicles. The driver or vehicle owner decides to have the vehicle repaired – perhaps working through their auto insurer, or possibly as a self-paid repair. In either instance, one of the first steps is for them to select a repair facility to complete the work. Seems easy enough, but when we consider that most consumers only have an accident every seven years, many may not have a go-to shop, in which case they may rely upon their insurance company for a recommendation.  This can be helpful, but even auto insurers lack visibility as to which shops carry OEM-specific certifications.

Things are about to get easier – and 10 OEMs are already using tools CCC to help support their repair network programs.

Through our CCC™ OEM Care solution suite, we’re making it possible for automakers to promote their certified shops to insurers via the claims management solution most carriers use every day – our CCC ONE® Platform. Another important tool for automakers is Carwise.com, a consumer-facing website that already supports more than 5 million visits annually, helping consumers find collision repair shops and schedule repair work. The Carwise® website helps consumers by displaying shop qualifications and certifications as well as more than 4 million consumer repair shop reviews.

Once a certified shop has been selected the business of the repair can begin.

As noted above, the increasingly complex vehicles on the road today require more sophisticated and process-driven approaches to complete consistent, quality repairs. Through a network dashboard tool, car manufacturers can get better insight into the performance of the shops in their network, including customer satisfaction, severity, part utilization, and cycle time. These key metrics can be used to compare network performance versus the rest of the industry. Similar tools from CCC already help shops and auto insurers manage key metrics within direct repair relationships (DRPs) and have proven successful in the development of more precise and actionable measures and driving consumer engagement and satisfaction with the repair process. Using CCC’s OEM dashboard tool, car makers stand to benefit in similar ways.

But tracking and measurement aren’t just for OEMs. CCC is also making it easy for participating shops to electronically document and follow a defined set of standard operating procedures from the moment a vehicle arrives into their shop, until the vehicle is delivered.  The use of these digital checklists, and integral part of CCC’s OEM Care suite, gives OEMs a further measure of confidence that repairs follow OEM procedures – while offering repairers a way to track, manage, and document the OEM repair procedures for every job.

As vehicle technology has evolved so have the technology requirements of repairers, insurers, and car manufacturers to navigate a modern repair process. At the center of it all is the consumer and the need to return safe vehicles to the road. Given our role as the platform that processes 24 million estimates and 16 million repairs annually, we stand ready to support the industry as it establishes and seeks to uphold best practices for complete, consistent, quality repairs.

[i] 2018 Crash Course Report, CCC Intelligent Solutions /crash-course-2018/

[ii] Ibid

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