IABA takes position on insurer-mandated programs

There have been several recent statements made by other State Associations and Industry Leaders across the United States in regards to insurer business interferences and mandated programs including parts procurement. The Indiana Autobody Association (IABA) as an affiliate association of the Society of Collision Repair Specialists, SCRS, is in full support of the recent SCRS Statement:

"In representation of collision repair businesses across the United States, The Society of Collision Repair Specialists (SCRS) takes exception to business mandates that property and casualty insurers impose upon collision repair businesses; particularly those that specify required vendors, business platforms or internal processes that must be followed in order to be included in, or avoid being excluded from, certain lines of work. As an example, insurer
mandates surrounding parts procurement platforms may inhibit independent collision repair businesses from utilizing parts vendors with whom they have an existing relationship, providing insurers with greater influence and control over the parts supply chain. SCRS believes this control falls outside of the scope of the insurance business. Some insurers are stipulating agreement to these terms, as a condition of being recognized in Direct Repair
Programs (DRP). SCRS supports efforts that rightfully seek to eliminate such intrusion into the collision repair business, and enforcement of existing laws, regulations and codes that currently prohibit such actions. It is the opinion of SCRS that voluntary agreements cannot include stipulations which violate existing laws, rules and regulations.

SCRS believes that collision businesses are capable of establishing successful vendor relationships and internal processes that will best accommodate the needs of the consumer, and that service providers will continue to respond to the market with increasingly creative solutions that drive performance for their customers and the respective market entities. We believe that solutions with tangible value propositions will be utilized and supported by the
marketplace without the undue influence of insurer mandate."

The IABA believes as other associations and leaders have recently stated that all repair decisions, vendor selections, and business processes should be left to the collision repair professionals who work on these vehicles, and have been entrusted by the vehicle owners to make correct repair decisions regarding their vehicles.

The IABA also recognizes that the intent of these mandated programs are not designed to improve efficiency in any current business process, or for the benefit of the vehicle owner. We believe these attempts are solely driven by insurers and other 3rd parties seeking to make additional profits and gain control of the collision repair business through practices that can be considered extortion and tortious interference, as previously identified in the 1963 Consent Decree, and the IABA will pursue to deter these actions using the fullest extent
of the law.

About the IABA
The Indiana Autobody Association is a State Association that represents approximately 1000 independent and dealership collision repair facilities in the State of Indiana. The Mission of the Indiana Autobody Association, IABA, is to Promote Professionalism and Consumer Awareness of the Automotive Collision Repair Industry in the State of Indiana.