Are insurers taking too long for repairs?

The average time taken to repair a vehicle in New Zealand could be reduced by a third with improved administrative processes, according to a new industry survey. A study conducted by the Collision Repair Association (CRA) found that the average time taken to repair a vehicle is around six days, with two days absorbed in administration between the insurer and repairer. CRA general manager Neil Pritchard said some of the largest insurers in New Zealand had the longest administration times, with IAG, NZI, State and AMI group considered the most bureaucratic by survey respondents. However, Medical Assurance, FMG and Allianz were found to have the shortest administration processes, according to respondents. "Under the current model, the typical repair process requires the insurer to accept a claim for repairs, assess the vehicle, then authorise the panel beater to quote on the repairs. Once the estimate is accepted the panel beater can begin repairs,” said Pritchard. “The issue is there is no industry standard covering the documentation required for an insurance claim and some insurers are regularly making requests for additional information after the estimate has been submitted by the repairer.” However, the Insurance Council challenged this claim, saying the delay in repairs was due to a shortage of skilled panel beaters, not insurance red tape. "They [The CRA] need more skilled staff who know how to work with high tech cars and they need more staff in repair shops in the major cities where we have seen an increase in both cars on the road and crashes,” said Insurance Council chief executive Tim Grafton in a statement. The CRA’s research also found Vero/AMP, YOUI and Zurich were the slowest to assess, process and authorise insurance claims, while Medical Assurance, FMG and AA/SIS the fastest. FMG was also the most likely major insurance company to be recommended to friends and family.