VEHICLE COMPLEXITY CAUSING A STEP-CHANGE ACROSS THE INDUSTRY
The trend is ever increasing driver assistance aids and all new powertrains being offered across vehicle packages. Added to this are vibrant specialty three-stage mica pearl colours that help differentiate models and sell quicker. Insurance costings need reconfiguring in a big way to take all of the above into consideration.
The customisation explosion has delivered a vast new choice option for consumers and automakers. It has also created growing challenges for collision repairers and insurance motor book underwriters, who are in a way, currently being left behind in the new wave of technology.
All of these factors influence used car replacement values and ever rising repair costs, while a visible and widening gap between insurance repair is being seen.
Vehicles that arrive without the 17-digit Vin are an identification nightmare all on their own. We need simplified vehicle identification. This will aid in the assessment and introduction of significant pricing with the insurance houses. It is also a common fact that used vehicle prices have increased by approximately 20% in the last five years alone, which muddies the waters further.
Insurance companies in South Africa have, in some cases, seen that even minor crashes need expensive sensor replacements along with other technology. Complex recalibration processes are then called for to restore a vehicle to its pre-accident condition – and most dealerships that this is outsourced to by OEMs have no clue what they’re doing. This leads to extended repair time and reputational damage for the MBR. operators.
Pricing on insurance cover has also accelerated vastly in the last five years which has seen close to 60% of insured drivers shopping around for cheaper cover. Local levels of insured drivers are at ultra-low levels of around 18% on our local roads, if you take out fleet and government numbers.
Consolidation in the Dutch body shop market changing at light speed
Irene Sommeling, Ombudsman for Damage Repair in the Netherlands, has brought to public knowledge, the fact that three simultaneous transactions have restructured the Dutch body shop industry. In parallel with the publication of the articles, Irene was in direct communication with the Dutch government. The EU27 Commission and the UK CMA have launched investigations into the paint company merger this month. The Dutch government will launch an enquiry into the affair of the business insurance provider sell-off. This was confirmed in late April.
The first of this three-pronged action was to concentrate on the supplier side. The merger of AkzoNobel and Axalta Coating Systems was announced 18 November last year. Between these two paint giants, they cover eight paint brands in the Dutch market. The second prong was the vertical concentration of power: insurer to branch insurer. On the 8th Janaury this year, ASR Nederland N.V. announced the acquisition of 100% of Bovemij’s insurance activities for €185 million. Bovemij is historically the branch insurer of BOVAG, representing the interests of more than 8 000 entrepreneurs in the mobility industry, including thousands of damage repair companies.
The third part of the puzzle was networks and dealers. Accelerated consolidation is taking place within damage repair networks, dealer holdings and captive damage structures.
Some examples are:
- Century Schadeherstel switched from Schadenet to A.A.S. in early 2026.
- Louwman took over Van Alphen Autoschades Tilburg on 1 January 2025.
- Broekhuis took over Van Markus Autoschade in March 2025.
- The Swedish Werksta group took over Den Elzen Autoschade.
Shadenet have 120 branches, ABS Autoherstel 80 branches, AAS approximately 100 companies – just some numbers to show you the work direction that is taking place with these deals that are public knowledge. The average person in the Netherlands won’t join the dots of these three initiatives and what is happening behind the scenes when they take their car in for repair, but thankfully with Irene’s knowledge and position.
Just what happens to individual dealers in this process remains to be seen and we will keep you posted as more unfolds.
By Claire Macfie
