Business Insider warn that “many repairers would have run out of cash and face closure” and others would need “to raise cash or sell assets to survive” just weeks into a no-deal scenario.
They have said that “leaving the European Union without a deal would have “dire” consequences for the industry, with up to 1,000 UK companies closing within two weeks, and thousands more closing within the first month, according to leaked notes taken at a recent meeting of industry leaders.” Article Here.
With the potential of a no deal Brexit nearly on our toes it’s paramount all sectors, businesses and professionals begin thinking outside the box and analysing smarter ways of working in conjunction with others within the sector.
With so many repairers having to wait until a repair job is complete a no deal Brexit will inevitably slow down the repair process. This in turn increase hire days putting a significant strain on cashflow. The tighter margins on repairs and more importantly bodyshops and storage compounds, which will likely to be filled with dormant vehicles waiting parts or payment, will almost certainly put extra strain on the insurers also. The bodyshops are less likely to negotiate discounts or enhanced rates and will potentially cost the insurers a greater premium to repair vehicles in the long run.
Laird have already been working with some of the countries largest companies to tackle this problem; instead of offering standard products Laird have been analysing these trends in the industry to implement solutions for all involved. Recognising that certain providers speed of initial authorisation was far too slow Laird invested heavily in their qualified teams, technology and processes to streamline this into a ultra fast process.
Head of Automotive, Lee Baty said:
On average we have an inception to authorisation time of approximately 2 hours meaning the bodyshops can continue as they are and increase the productivity and workshop vehicle flow on a daily basis.
Given the success of such an efficient process to help all involved we have been analysing which side of the claims process we can assist with.
Claim Flow Process
After looking at the Claim flow from inception to settlement and the short period the Engineer is involved with we have devised our own processes and technology which will allow us to work with the bodyshop well before the vehicle is actually on site.
We anticipate that with our infrastructure and services we can potentially reduce the claims cycle by approximately 5 working days on average. It means we can authorise a bodyshop well before the vehicle is even on site which allows them to order parts and have them on site near on the precise time the vehicle has been booked in for the repairs. We have installed AI on some services with more coming in the next few months.
This innovative approach has also in some scenarios allowed us to secure funding for parts from the insured within a very short time from authorisation, which in turn prevents bodyshops capital being tied up on potentially delayed parts which is no doubt likely to increase with the potential of a no deal Brexit.
MD Nik Ellis concluded:
These innovative solutions are just some of the steps we are taking to work with our network of suppliers and customers. We’re regularly consulting for some of the countries largest and most reputable companies to help streamline their processes and showing the true value of an Engineer throughout the claim cycle.
To find out how we can speed up your claim cycle contact us here or call 0151 342 9961