Industry reaction to Progressive policy change is positive

By: Bruce Adams
Two industry-leading organizations expressed optimism about Progressive's recent announcement that it is changing its policy on partial paint/full clear.
 
"We reviewed our refinish guidelines and made changes to better address the refinish procedures that are being performed in the industry today; and to clarify operations so that they can be better understood and applied in the appropriate situations," says Chris Andreoli, corporate PD process manager of Progressive Insurance.
 
"Although we strongly believe that reducing refinish times on a more widespread basis is an acceptable practice and reflects operations that allow the shop to restore the vehicle to its pre-loss condition, the decision to limit the use of partial refinish was made in large part to improve our working relationships with shops, and thereby improve the customer's experience," Andreoli says. "Situations that would include a minimal color coat application, such as a chip on the edge of a panel, will be adjusted accordingly based upon evaluation of the damage."
 
 
Leaders of the Automotive Service Association (ASA) and Society of Collision Repair Specialists (SCRS) praised the announcement and said they hope it will lead to further improvements in relationships between insurers and repair shops.
 
"The spot paint/full clear position of Progressive, as well as that of other insurers, has been a source of controversy and frustration for repairers for some time," says Darrell Amberson, ASA Collision Division director. "Most repairers and paint manufacturers argue that the logic is flawed based on estimating database procedures and refinish guidelines. ASA hopes that other insurers will recognize the leadership position Progressive has taken on this issue and reconsider their positions on the issue as well."
 
Denise Caspersen, manager of ASA's Collision Division, says, "ASA applauds Progressive for this significant policy change and for its willingness to improve relationships with the repair industry. ASA looks forward to a continuing dialogue. It is through such effort and dialogue that we can continue to work toward better understanding and industry improvement."
 
Dan Risley, executive director of SCRS, said his organization had been in contact with Progressive and was not surprised by the announcement.
 
"Chris Andreoli has made a concerted effort to reach out to the industry and listen to repairers concerns," Risley says. "Chris has made it known to SCRS that Progressive is interested in improving their relationship with repairers and they have taken steps to illustrate their commitment."
 
Risley said evidence suggests that Progressive is committed to the change.
 
"We've had to contact Chris on three different regional issues involving our members and Progressive's regional staff. In all three instances, the issue was resolved almost immediately," Risley says. "We have not seen this type of effort from Progressive in the past and it is great for the industry and the consumer. This is a step in the right direction. Hopefully, this is just the first of many more."
 
The arbitrary reduction of refinish time on a given panel is not specific only to Progressive. A few other insurers have adopted a similar process, according to Risley.
 
"These types of decisions are questionable business practices because they aren't based on fact," Risley says. "These situations clearly place the repairer and insurer's field staff at odds. While Progressive's announcement will address one SCRS concern, it doesn't address it on a national scope. Until those other insurers that are arbitrarily reducing refinish times make a similar change, the issue will remain unresolved."
 
Risley was not confident that Progressive's leadership position on the topic would influence widespread industry change.
 
"While I would like to believe that it would encourage others to take a similar position, I don't think it's realistic," Risley says. "I would encourage other insurers to analyze where the friction exists in their relationship with repairers and understand the true cost. Where there is significant friction there is an associated cost. There are areas that we may be able to identify that would be mutually beneficial if addressed."
 
Progressive made its announcement during a May 1 meeting with members of the ASA Collision Division operations committee. Andreoli said the decision was reached as part of Progressive's regular overall guideline reviews. Management reconsidered its position, in part, due to industry feedback, he said.
From: search-autoparts/industry news

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