Hot on the heals of announcing a change to its corporate operations, Suncorp is now in discussions with the repair industry to look into ways of reducing costs of repairs.
Meetings with motor traders associations have been held, amid claims Suncorp’s national insurance brand AAMI is planning to set repair facilities that will feature new technology aimed at speeding up the repair process.
It is believed facilities are being considered for Sydney and Perth to set up a new repair system.
In Fairfax Media’s Business Day, Eric Johnston reported that the development of the technology had been underway for three years.
He reported smash repairer, Jim Vais, who has AAMI as a financial backer, has developed a system which combines “high-tech paint and something akin to a microwave oven”, and claimed a “freshly sprayed car paint can be dried in as little under five minutes, compared to the hours needed to have typical car paint touch-dry”.
Mr Vias had not returned AP&P calls at the time of publishing this newsletter.
According to the Fairfax report, Suncorp’s group general manager of claims for personal insurance Jason McCracken, said discussions were underway to secure a facility in Perth with the aim of having the repair centre open by the end of the year, but suggested expansion into other states was some time off.
''There's a significant amount of capital investment required and we're working with repairers and partners on that. Perth is a market [where] we don't have a large market share and we're keen to grow there. This is a great customer proposition about getting the customer on the road,” McCracken told Fairfax Media.
AAMI will continue to direct business to repairers through its own competitive quoting system while Suncorp’s other brands, including GIO and Suncorp, will continue to offer customer the choice of who repairs their car, however this will come at an additional cost which will be built into premiums.
It would seem, however, that Suncorp does not want a repeat of the NRMA dispute when the crash repair industry took the insurer.
McCracken said it was important that Suncorp join with the crash repair industry on its plans to increase efficiency.
''Trying to take on the industry is just the wrong way to go about business,'' McCracken said.