Friday afternoon, I took the afternoon off for some R and R. I was lounging by my pool and I fell asleep. While napping I had a very unusual dream.
I dreamt that after the Obama administration passed its healthcare legislation, the President decided that he wanted every citizen that was of legal driving age to own an automobile. Of course, it had to get the required mileage, etc. In addition, he wanted every automobile to be covered by insurance that included comprehensive coverage with an auto glass endorsement and no deductible.
There would be no restrictions such as pricing caps, etc. You would have the freedom to have your vehicle serviced by any collision or auto glass shop that you desired. What was very interesting was that unlike the healthcare policies that covered the President and members of the Congress, the very people that would pass this legislation wanted the ability to opt out and be able to subscribe to the same policy offered to the general public at large. You see, they were on some policy underwritten by some company whose ad prop was a green lizard type and they wanted to have the ability to have their auto glass replaced by a quality shop, using quality materials and employing quality technicians.
They did not want to be subjected to harassment by some third-party when calling in their claims. They simply wanted the freedom to have their cars serviced where they could trust that the job would be done correctly and safely. What was ironic was that everyone who attended the town hall meetings held by their representatives were adamant about having this program enacted. They actually wanted the government to legislate this new program. There was no concern for the cost of the program or the fact that the government would be involved.
People were tired about having to listen to some customer service representative for 20 minutes trying to talk them into taking their car to some box store styled repair and replacement shop. They were exhausted after simply trying to make an appointment with a shop of their choosing and getting railroaded by some individual located at some call center in the Midwest.
Well, after months of debate and public outcry, the bill was finally reconciled in a joint committee of both houses and the day finally came for it to come up for a vote. A short time after the voting began, I woke up after being licked across the face by my 140-pound black lab, Otis. Unfortunately, we will never know how the vote would turn out.
What a dream. In the course of a short, eventful half-hour snooze, the ills of the automotive glass repair and replacement industry were almost fixed. Back to the nightmare.
Tuesday, August 18, 2009
Tuesday, August 4, 2009
Winds of Change
Are the winds of change blowing through the United States Department of Justice (DOJ)? Is the Obama Administration concerned with fair and free competition and therefore in pursuit of corporations that are not playing within the rules? A recent article by the New York Times News sure makes it sound that way. In particular, the article introduces the readers to the top official of the antitrust division at the DOJ, Christine A. Varney (a Syracuse native, I might add). The article notes that the administration is determined to reign in several industries, including airlines, railroad and pharmaceuticals.
The administration’s stance differs from that of the previous administration in that the current spin is that domination hurts consumers. To the contrary, the article supports that the Bush Administration held the position that larger corporations would benefit consumers due to economies of scale. Having experienced the inner workings of the auto glass repair and replacement industry and hearing of similar circumstances in the auto body repair industry, it is my hope that a slide of these industries will be prepared for the microscope. When an insurance claim is introduced into the process, small business operators in either of these industries can attest to the unfair practices and that steering truly does exist. You do not need to convince me that current practices in the auto glass industry restrict free and fair competition. And when competition is restrained, consumers are harmed. Consumers benefit when they are free to choose a service provider without conditions or undue influence. In the case of an insurance claim, we know that both factors are present. Consumers are harmed when something as critical as a properly installed windshield is to their safety is being installed by anyone who will “accept” the insurance company’s price. No other qualifications, just accept the price and the job is yours. And when two of the largest auto glass claims processors (i.e., third-party administrators) have major conflicts of interest, need I say more?
In a recent glassBYTEs.com™ video newscast, we viewed the newest addition to the Safelite distribution network. We are witnessing the “Walmart-ization” of the auto glass repair and replacement industry. Let me remind you that the replacement of a windshield is not, is not, a commodity. It is a service and a critical service indeed. And when that service involves the safety of consumers, we should all be ashamed of ourselves, regulators, insurance representatives and AGRR industry participants that we allow this scenario to continue to unfold. I commend the efforts of the various associations that are working feverishly to promote consumer safety through certification programs and installation standards. Free and fair competition must replace the present system in the AGRR industry. Consumers must be assured that their windshields are installed based on safety and not that their insurance company paid the lowest price for the claim.
The administration’s stance differs from that of the previous administration in that the current spin is that domination hurts consumers. To the contrary, the article supports that the Bush Administration held the position that larger corporations would benefit consumers due to economies of scale. Having experienced the inner workings of the auto glass repair and replacement industry and hearing of similar circumstances in the auto body repair industry, it is my hope that a slide of these industries will be prepared for the microscope. When an insurance claim is introduced into the process, small business operators in either of these industries can attest to the unfair practices and that steering truly does exist. You do not need to convince me that current practices in the auto glass industry restrict free and fair competition. And when competition is restrained, consumers are harmed. Consumers benefit when they are free to choose a service provider without conditions or undue influence. In the case of an insurance claim, we know that both factors are present. Consumers are harmed when something as critical as a properly installed windshield is to their safety is being installed by anyone who will “accept” the insurance company’s price. No other qualifications, just accept the price and the job is yours. And when two of the largest auto glass claims processors (i.e., third-party administrators) have major conflicts of interest, need I say more?
In a recent glassBYTEs.com™ video newscast, we viewed the newest addition to the Safelite distribution network. We are witnessing the “Walmart-ization” of the auto glass repair and replacement industry. Let me remind you that the replacement of a windshield is not, is not, a commodity. It is a service and a critical service indeed. And when that service involves the safety of consumers, we should all be ashamed of ourselves, regulators, insurance representatives and AGRR industry participants that we allow this scenario to continue to unfold. I commend the efforts of the various associations that are working feverishly to promote consumer safety through certification programs and installation standards. Free and fair competition must replace the present system in the AGRR industry. Consumers must be assured that their windshields are installed based on safety and not that their insurance company paid the lowest price for the claim.
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