This one is short and sweet from CAR Carrozzeria
Challenges/opportunities facing collision repair market
The Italian market has got too many small operators meaning there is too little work for so many bodyshops.
The number of bodyshops is stable, but only some are growing – it is estimated circa 5,000 will be important players for the insurance market. Italy doesn’t have a national network at present but only local associations.
Vehicle manufacturer involvement in the sector
Some car groups such as PSA, KIA and Hyundai are working to develop their bodyshop networks.
Insurer influence on the repair sector and impact on supply chain relationships
UnipolSAI is increasing its stakehold within the market with its network – Preso e Bene.
Impact of new vehicle technology on the sector
Bodyshops need help establishing internet facilities to enable them to access data systems/repair methods.
Repair technology influence within the market
Bodyshops are involved in learning all about new technology alongside their paint company partners and with their network (eg car company or group).
Skills and education
Some professional schools have begun to prepare young people for careers in the collision repair sector.
Trends/developments over the next three to five years?
ADAS systems are a new challenge for Italian bodyshops – there is a lot of work to do around this complex technology.
FACTS & FIGURES
Population 25.3 million families/61.2 million people
Full driving licence holders Estimated 34 million
Total vehicle parc 36,935,000 million cars
Average vehicle age 9 years
Total new road vehicle sales
2014 – 1,360,000
2015 – 1,575,000
2016 – 1,847,000
2017 – 1,970,000
Number of alternative fuel vehicles registered
2014 – 20,000
2015 – 26.000
2016 – 38.000
2017 – hybrid 66,041/Electric 1,879
Number of reported road collisions per annum 4,200,000
Number of collision repairs per annum 3,300,000
Number of vehicle write-offs per annum1,500,000
Number of motor insurers 165
Top three motor insurers by number of vehicles insured
1. Unipol SAI
Average motor insurance premium and excess/deductible €411 Q4 2016
Annual cost of motor insurance fraud €2bn
Insurance approved collision repair networks in operation Yes
Insurance owned collision centres in operation No
Vehicle manufacturer approved collision networks in operation No
Vehicle manufacturer owned collision networks operating No
Accident management companies active within market Yes
Accident management company approved collision repair networks in operation No
Total number of collision repair operators 10,000
Number of collision repair centres 8,500
Types of collision repair centres
Group/multi-site operators (MSO): Yes
Franchise operators: Yes
Largest operator Car Glass (250+ bodyshops)
Average cost of repair €1,200
Average cycle time of repair (key-to-key) 2 days
Average labour rate €35ph
Mobile collision repairers in operation No
Mobile SMART repairers in operation Yes
Number of mobile SMART repair operators 4,500
Total accident repair market value €4bn