On Friday, September 17, 2010, glassBYTEs.com™ linked to a story about the Irish Automotive Glass Repairers Association (IAGRA) and their protest against insurance companies in Ireland, claiming that they are putting their members out of business. The article reports that insurance companies in Ireland are making it difficult for policyholders to use the services of IAGRA member shops, referring them to preferred providers. While the group draws comparison to the United States, I believe that they are under the wrong impression about steering being subject to heavy regulation in the United States. Yes, most states have anti-steering laws to protect consumer choice. No, these laws are not adequately enforced and therefore, the situation in the United States is no different than in Ireland.
I believe that independent shops operating in the United States have the same gripe. As noted in the article, shops in the United States spend significant capital on advertising their shops and investing in the employment of talented technicians, only to have that investment negated by the tactics of insurers and their third-party administrators.
While the plight of those businesses operating in the windscreen repair industry in Ireland is comparable to those shops operating in the United States, I would advise them to evaluate the industry from the consumer’s perspective. Let me elaborate on that point. Since beginning my career in the auto glass repair and replacement (AGRR) industry, I lobbied extensively on both the state and federal level, both legislators and agencies, and the reaction from the officials was consistent. If there truly are problems in your industry, the AGRR industry, why are we not hearing from the public? One New York State official told me in no uncertain terms that if his agency was hearing from the public on a level that he was hearing from the glass and auto body shops, change would be immediate.
When I would meet with a legislator or bureaucrat, the first issue that I would raise would be the steering issue and to the extent that it was harming shops. Quite frankly, while they understood our challenges, they did not want to hear it. But during the past 12 to 24 months, my presentation was revised to include issues affecting consumer safety, from shoddy workmanship to inferior glass and the possibility of consumer fraud in the sale of an automobile insurance policy. The reaction, to say the least, has been quite different. But while this perspective has drawn their interest, they want to see the documented proof.
The difficulty before the industry now is to get show owners and operators to understand that we have to come together, collect and compile the data, and rouse the public’s support that will be necessary to bring about the change.
The bottom line is that the current atmosphere in any industry involving insurance claims and insurance companies is dictated by politics. We all know that the insurance lobby is very powerful. But we can also agree that it can be thwarted. The recent debacle that took place in Washington regarding “Obama care” is proof. The insurance companies could not over-power what was labeled as the will of the people, even though the jury is still out. In the AGRR industry, I have heard it all. I have heard testimony that third-party administrators know what’s best for consumers and they promote competition. This is silly, but unfortunately I also heard first-hand that people are buying it.
It is my ever-so-humble opinion that the AGRR industry also can change. Insurance companies are having their way because they have argued that they are doing what is in the best interests of the public and many legislators have and continue to buy into it. Fortunately, we know better and we know what needs to be done. If we involve the public and present the data to legislators and the appropriate state and federal agencies that can prove the contrary, in that consumers are being harmed, then the winds of change will begin to blow. Like the gentlemen on the Men’s Warehouse commercial boasts, I guarantee it. This is and should be all about the consumer. After all, aren’t you all in business to serve and satisfy consumers?
No comments:
Post a Comment