Auto repair issues tops the list of state advocacy objectives that the Property Casualty Insurers Association of America (PCI) is hoping to address in 2009.

Conflicts with the collision repair industry have been an ongoing issue for insurers. For instance, the Society for Collision Repair Specialists (SCRS) reported that the results of its most-recent annual survey revealed that many collision shops feel excessive insurer influence affected their shops' profitability. Shops also have expressed problems stemming from lack of insurance field staff training, steering, database manipulation, and insurers that dictate repairs.

PCI largely agreed with SCRS on the issues at hand, even adding a few to the list. However, it vowed to fight any legislation that would restrict insurers.

“Over the past several years insurers and the collision repair industry have clashed over issues such as anti-steering, labor rates, estimating systems, aftermarket parts and patent infringement,” said John Lobert, senior vice president, state government affairs for PCI. “These are important issues for insurers and consumers because physical damage repairs are a major cost driver for auto insurance. To help control costs and promote customer service, PCI will oppose legislative efforts that would restrict insurers' abilities to make recommendations or suggestions to consumers on individual repair facilities or that would impede insurers' abilities to manage the claim repair process and control costs on behalf of consumers.”

PCI also said that it would continue to resist efforts that would restrict the use of credit scores to determine policy pricing, support catastrophe legislation in coastal states, fight trial bar efforts to advance legislation that would create more opportunities for inflated damage awards, and work to develop regulatory framework modernization.

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Insurance Lobby Targets Auto Repair Issues

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