A trial motor vehicle repair facility by New Zealand’s largest insurer opening in November says it will “put customers first” despite claims it will create a monopoly.
IAG (includes Lumley, NZI, State and AMI) say the trial is designed to help improve customer experience, after an automotive industry association warned the quality of vehicle repairs may drop and reduce consumer choice.
The trial is in response to feedback from customers who want repairs completed quicker, completed to a high standard and improved communication during the repair process.
Collison Repair Association (CRA) is concerned that there will be a lack of consumer choice and competition in the industry as customers will be required to have their vehicle repaired at an IAG owned repairer.
The quality of vehicle repairs may drop under this new model, CRA warns. Customers will be required to have their vehicle repairs at an IAG owned repairer, and CRA general manager Neil Pritchard says the move is anti-competitive and signals a lack of consumer choice and competition in the industry.
“Our concern is that under a model where the insurer dictates the standard and scope of the repair, there will be no oversight in place to protect the consumer,” Pritchard says.
MacGregor says customers will continue to have choice over who repairs their vehicles and that will not change.
“The customer is our first priority. The customer gets to choose which repairer they go to, whether that is a member of our approved repairer network, Repairhub or otherwise.”
Repairhub, the repair facility, will open in East Tamaki, Auckland next month.
IAG’s claims services executive manager Dean MacGregor says Repairhub will trial enhanced technologies and techniques in the international car repair industry.
“We have talked to our customers about their experiences when getting their car repaired. This trial aims to respond positively to that feedback.”
“We will be trialling a process to manage the entire process with the customer, to ensure they are kept fully informed and provided courtesy cars if required.
“Repairhub will use cutting-edge technologies and stream-lined processes to provide greater customer experience, further improve quality and get our customers’ cars back on the road faster.”
MacGregor says customers will continue to have choice over who repairs their vehicles and that will not change.
“The customer is our first priority. The customer gets to choose which repairer they go to, whether that is a member of our approved repairer network, Repairhub or otherwise.
“IAG is taking its responsibilities seriously as an industry leader in building this facility. We will use the insights we gather to continuously improve the service as we move forward,” MacGregor says.
He says IAG will continue its strong relationship with the industry and industry bodies and supporting the motor vehicle repair industry.
IAG’s Trade Scholarship Programme helps a number of apprentices across the country in tuition fees and mentoring. In 2019, 107 people were a part of the programme, around half in the motor repair industry.
