May 2007

Welcome to the June edition of Commentary Box. Talking to many bodyshop owners, around the country, it's encouraging to report that many are experiencing an upturn in business. However the latest episode of "musical chairs" played out between work providers, and repairer networks, hardly makes for pleasant reading. You know, many years ago the poet Tennyson coined the phrase "a doubtful throne is ice on summer seas," Centuries ago, did he really have the foresight to know that he may well have been describing a position that could apply to so many bodyshops? Then again, how many times have we said that being busy, in the bodyshop, is no guarantee of being profitable? So, while the yard fills up, is the work generating profit or simply lubricating cash flow? In fact, looking back, I can well remember how my late business partner, Peter Woodhouse, used to comment on just how many bodyshops, in his view, seemed to focus on the dependency of work, as opposed to it's value.

Against this background, it is very appropriate that my guest this month, Paul Leahy of Accident Injury Brokers, is someone who can help bodyshops add real value. So, without further ado, allow me to introduce Paul Leahy.

PW      "Paul, many thanks for coming along to the Commentary Box, at rather short notice, to talk about the exciting arrival of Accident Injury Brokers. (For writing purposes, we'll abbreviate the title down to A I B.)  Having worked closely with you and Mo Rafiq, at Trauma Claims Consultancy (T C C) for some while now, am I right in thinking that A I B evolved as a result of the way T C C acquired it's work traditionally?"

P L: AIB was formed from the concept of the knowledge gained in the recently formulated Compensation Act 2006 whereby the Government introduced, in April of this year, legislation for the regulation for the activities of Claims and Accident Management services.  Trauma have traditionally worked very closely with accident management companies to ensure that clients they referred to us, via solicitors, were always given a quality service.

P W     "Can we pause here for a moment and recap on the changes the Government made, earlier this year, to the regulations covering accident management companies and the way in which they operated?

P L:      The Compensation Act 2006 came into force on 23 April 2007 and was originally the responsibility of the Department for Constitutional Affairs (DCA), this changed on the 9^th May 2007 when the newly formed Ministry of Justice (MOJ) took over the responsibilities for the DCA.  Effectively this law means that any such persons involved in the process of referring a client to a solicitor, and receiving a financial reward for this process, must be regulated by the MOJ.  In order to reflect these changes to Accident Management activities the Rules of Conduct for Solicitors have been changed to complement the Compensation Act so that for example all forms of cold calling are prohibited and if a referral fee has been paid it has been disclosed to the client.  So things have not only changed dramatically for Accident Management Companies but also for Solicitors, because the MOJ are vigorously enforcing the Rules of Conduct for authorised businesses by surveillance of websites and other advertising, requesting copies of contracts from authorised businesses and inspecting authorised businesses.

P W     "Clearly this changed the way in which you looked at things and, I guess, provided the springboard upon which to launch A I B. Is that correct?"

P L:  We felt that, with the rigorous framework of regulation to work under, the time to launch AIB was correct.

P W     "That's very interesting and now, can we talk about how you get your message across. Having read your leaflet, and heard you talk about A I B, it's clear to me that you have a number of unique stances. While the first one that comes to mind is the fact that you handle both fault, and non-fault accidents for a network of brokers, the second one is that you encourage body shops to refer any non fault personal injury claims which come through their door to you. In return you provide the body shops with fault and non-fault work. This, I take it, is a deliberate position of your service?"

P L:  Yes Peter that's absolutely correct. The body shops are asked to refer any of their customers who have suffered a personal injury during a non-fault accident to AIB. AIB reciprocates by referring fault and non-fault work acquired from it's broker net work to the body shops. This helps to increase the volume of work going through the body shop and thus the body shops profitability.

PW      "Right, that's logical since I guess brokers will always be the first "port of call" for any customer who has suffered an accident, regardless of fault. With this in mind what is the size of the broker market that you have tapped into?

P L:   We have been able to secure exclusive agreements with over a 100 insurance brokers who provide nationwide coverage for customers and in particular specialise in fleet policies.  One particular broker, who we work with, has an underwriting capacity of in excess of £25 million.

P W     "That's powerful, in effect you are saying that there is a network of over 100 brokers, covering the U K, who are willing to promote A I B?"

PL - That's correct.

PW      " I think that the A I B package offers a number of Unique Selling Points to both the brokers and the body shops. So, how are you making the brokers and body shops aware of A I B?"

PL -  In order to promote the service offered by AIB to bodyshops, and brokers, we are making direct contact with both sectors of the market. This is done by direct advertising, to both sides, and by making contact with bodyshops and brokers, often  by recommendation, and by making presentations to the key decision makers within their respective sectors.  It is hoped by being able to demonstrate what we do successfully, to both sides of the market place, will enable more brokers and body shops to express an interest in AIB and so build up the momentum of business. 

PW   "Clearly, A I B is in it's infancy right now, but how do you see the potential for growth?"

PL - The potential is vast as we look to provide the complete accident management service at AIB to the national network of insurance brokers as well as generating claims from its own direct advertising and contacts within the community.

PW    "In effect then, what you are trying to achieve is the scenario where every accident victim, non-fault, or otherwise, makes first contact with their broker and is then referred, post haste, to A I B?"

PL: Correct. We feel that at AIB we have the network of bodyshops based nationally that we can postcode match the clients we act for to. For non fault accidents, where the clients have suffered a personal injury, we have a number of high quality personal injury lawyers whom we work with who can competently handle these claims.

PW   "Now, as you know, I try to "champion" the bodyshops and, in particular, the prime interests of the members of the Bodyshop Fellowship. Already you have kindly agreed that, wherever geographically possible, A I B will channel fault, and non-fault work, into our members bodyshops. This is fantastic news because not only will it support existing members, it will encourage other bodyshops to join where we need representation.  Therefore, with A I B making regular use of our website, I'm right in thinking that things can only develop positively for all of us, that is accident victims and our body shop members?"

PL:  Yes that's correct. We recognise that body shops that seek to work closely with AIB will enjoy an opportunity to grow by receiving new referrals of fault and non-fault work. In return AIB would encourage the bodyshops to refer customers who come to them directly and have suffered a personal injury in a non-fault accident.

PW   "Paul I'm sure we could go on for some while yet, but time is not on our side and I must, reluctantly, bring this very interesting discussion to a close. However, I'd like to cover one area that I hope A I B will find beneficial, if they are not doing so already. That is, do you remember that, while our bodyshop search facility located bodyshops by postcode, it will also find them by manufacturer approvals and up to some 9 or 10 special services. This allows A I B to direct repair work into the nearest bodyshop saying that they are equipped to handle that specific work. Do you think that this aspect of our website will prove to be useful to your staff at A I B?"

PL:  This aspect of your website allows us, when obtaining the clients instructions, to be more specific with the type of specialist repair that may be required for the clients need.  Clearly by being able to source this information without having to wait for information updates allows us to process the claims quicker and be more detailed with the clients instruction.

PW    " So, now it only remains for me thank you for coming into the Commentary Box and for the potential support you can offer to our members. Finally, can I offer you the last word, in so much as please tell us how any bodyshop can make contact with you over the telephone and, if required, would you or your colleagues, be willing to visit them?"

PL  The AIB accident management service is a fantastic way for members of the Bodyshop Fellowship to enhance their business turnover by working alongside us in order to provide our clients with both a fault and non fault service for repairs.  As your members are based throughout the UK we recognise the importance of postcode matching a client to their local garage for repair, this is very important to us because it keeps the client happy and we keep the client informed of the progress of their repair.  Clearly we don't want the work to be all one way and would look for the bodyshops to reciprocate with personal injury referrals to AIB, in return for the work provided to them.  Should any of your members wish to discuss things further with me please do not hesitate to contact me on: 0247 621 4451 or 07947 884850 I will be happy to explain the AIB service further.    

That's it for this month. Look out for next month's commentary and keep visiting the website.

Peter Warrilow
The Bodyshop Fellowship