CARSTAR offers positive outlook on growth with insurance partners in 2017

Jan. 19, 2017
For CARSTAR Auto Body Repair Experts, the collision repair industry in 2017 offers an ever-evolving landscape that will require the major MSOs to broaden their services to meet the needs of their insurance carrier partners.
For CARSTAR Auto Body Repair Experts, North America’s largest MSO network, the collision repair industry in 2017 offers an ever-evolving landscape that will require the major MSOs to broaden their services to meet the needs of their insurance carrier partners.
CARSTAR Insurance Highlights
- More than 400 new DRPs added to the system
- Same Center sales increased 12% for the year
- Top 10 carrier insurance sales growth increased 20%
- 92% of volume through insurance carriers in 2016
- Insurance team re-alignment to zone structure
- Creation of performance analytics team to support insurance and operations in driving KPI performance
- CARSTAR Care Center introduced in the United States

“We’ve seen tremendous changes over the past several years, and expect this rapid pace of innovation and evolution to continue in 2017,” said Arlo Johnson, VP of Insurance Relations for CARSTAR.  “Insurance-driven work is a very important segment of our business, so we are committed to growing and changing to meet their needs.”
 
Johnson noted several trends the CARSTAR North America is addressing:

  • Consolidation of work to large MSOs will continue – The major MSOs are, for the most part, better able to meet the high repair standards and program guidelines of the top insurance carriers.  With the focus on repeatable outcomes and KPI performance, the shops with better trained technicians, standard operating procedures and team members focused on the insurance-based work will be better suited to serve their insurance partners.
  • MSOs will develop and provide strategic services that support their insurance business – At CARSTAR, weare expanding our insurance services to support our partners with a new CARSTAR Call Center, a central claims review function and one point of contact for efficiency.  We also are looking at strategic services for consumers that make the repair process easier for them, which help improve their satisfaction with their insurance provider.
  • More insurance companies will leverage PBAs to drive performance – With the insurance partnerships there will be increasing standards for performance.  MSOs who want to have national relationships with the insurance carriers will need to implement performance-based agreements that set guidelines and goals for performance.  This will require shops to be more stringent in their work processes, operating procedures and KPI performance.  And it will require MSOs to expand training and operations programs to continually deliver performance improvements.
  • Training and education in the shop is more important than ever – The ability of an MSO to meet the insurance carriers’ standards depends on the performance of every single technician, estimator, customer service manager and owner in the network.  Their continuous training and education about the advanced technology and materials in today’s cars will help ensure they are able to deliver the highest quality repair experience every time, for every customer.

For more information about CARSTAR insurance programs, visit www.carstar.com or contact Arlo Johnson at [email protected] or visit www.carstar.com/insurance.
 
About CARSTAR
 
CARSTAR Auto Body Repair Experts-- a part of the Driven Brands, Inc. family of automotive aftermarket franchise brands -- is North America’s largest Multi-Shop Operator Network of independently owned collision repair facilities with more than 500 locations in 30 states and 10 Canadian provinces. CARSTAR delivers national scale, consistently high-quality vehicle repairs, repeatable outcomes and the industry’s highest customer satisfaction ratings; all repairs are backed by a national warranty and service guarantee.   CARSTAR was named the No. 1 largest MSO in North America by The Romans Group LLC, named 470 on Entrepreneur magazine’s Franchise 500® list and ranked 106th on Franchise Times® annual Top 200™ listing of the largest franchise systems in North America.  For more information visit www.carstar.com and follow us on Facebook and twitter.  CARSTAR is actively seeking new franchisees.  Interested parties should contact Sam Freeman at [email protected] or 888.505.6815.

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