Non-Accredited Collision Repair ShopsCollision Program Redesign

August 20, 2019

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Facilitator

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Juliet Irwin

Change Management & WebEx Host

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ICBC, its employees, the association, association staff and individual attendees (collectivelythe “Attendees”) give high priority to full compliance with both the letter and spirit of thefederal Competition Act (the “Act”).

During meetings and programs, the Attendees will not condone or permit any discussions,whether official or “unofficial” or “off the record”, of price-fixing, collective refusals to deal(i.e., boycotts), blacklisting, market division/allocation, supply restrictions or other anti-competitive activities that may contravene the Act.

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Similarly, Attendees at any meeting should not hesitate to voice concerns they may have inthis regard. Such discussions must also be avoided before, after and on the “fringes” ofmeetings.

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Shane Loiselle

Manager MD Programs

Troy Campbell

Manager MD Programs

Sonny Senghera

Manager Stakeholder Relations Claims

Strategy and Programs

Welcome

Agenda

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Background and Objectives

What This May Mean To You

Q&A

Program Highlights

Next Steps

1. Background and Objectives

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Changes to auto insurance in B.C.

The Case for Change

ICBC’s Material Damage Program is outdated, does not meet industry standards and lacks the controls necessary to curb escalating claims cost trends that are partly driven by vehicles with increasingly complex technologies.

ICBC needs a program that:

Focuses on long-term trends shaping the collision repair industry.

Promotes efficiencies for high-performing shops.

Effectively manages performance and quality.

Ensures safe and proper repairs are performed.

Promotes greater partnership and engagement.

Industry Advisory Committee

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10 Total sessions

>1000 Sticky notes and ideas

15 Industry Attendees

Develop problem

statement and success

factors

Industry Consultation

Finalize program and

implementation

activities

Refine detailed design

through working

sessions with industry

Begin high-level design

Consult on concepts with IAC

ICBC

New Program Overview

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Largest change to ICBC’s collision repair programs since the early 2000s.

Reward and promote high-performing repair facilities.

One set of requirements for participating shops to ensure safe and proper repairs at the best market value.

New set of equipment and training requirements for all regular private passenger vehicle repairs.

Changes to ICBC’s Collision repair program are part of a suite of changes we’re making to get the car insurance system back on track and better for B.C.

2. What This May Mean To You

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Discontinuing the Direct Billing Relationship with ICBC

What happens after transition period?

There will be a two-year transition period to phase out direct billing effective from the start of the new program.

We will be discontinuing direct billing for non-accredited collision shops.

Future ICBC Non-Accredited Suppliers

When the customer chooses to have their vehicle* repaired at one of these facilities, ICBC will advise the customer:

• this is not an ICBC-accredited facility,

• the facility will not be able to directly invoice/bill ICBC

• the customer must pay for the repairs and then seek ICBC reimbursement

• ICBC may not reimburse all charges billed to the customer.

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Customer retains right to choose any collision repair facility to repair their vehicle.

* Applies to regular, private passenger vehicles (everyday truck and car)

Applying to the New Collision Program

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Interested in applying to the new program – what’s required?

How can I find out more about the minimum equipment and training requirements?

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3. Program Highlights

Minimum Program Requirements – Equipment

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• MIG/MAG welder

• Resistance Spot Welder (STRSW)

• Pulse MIG welder

• Dedicated universal fixture system, straightening rack, or bench

• Simultaneous, three-dimensional, electronic vehicle measuring system

• Diagnostic scan tool

• Proof of calibrations

Addressing the increasingly complex technology in vehicles today

Minimum Program Requirements – Training

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• I-CAR Gold Class

• Trade qualifications

• OEM repair procedures

• Proof of training in Silicon Bronze MIG

• Proof of technical training for measuring systems

• Proof of product training for refinishing systems

National Third Party & Manufacturer Certification Programs

• ICBC would accept certification programs that meet ICBC’s minimum requirements for application and renewal purposes

• ICBC would not promote any certification programs• ICBC would verify requirements if the shop does not have a

certification

Addressing the increasingly complex technology in vehicles today

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Toyota Certified

General Motors

Ford Certification

CCR CCIAP CCC CARSTAR EDGE

VERIFACTS

Training and Equipment

OEM or I-CAR Gold Class certification

OEM repair procedures proof of compliance

MIG/MAG welder for steel fusion welding

Squeeze-type Resistance Spot Welder (STRSW)

Dent removal/pulling system

Pulse MIG welder with silicon-bronze MIG brazing capabilities

Proof of training in Silicon Bronze MIG brazing

Modern vehicle anchoring and pulling capabilities

Electronic Three-dimensional vehicle measuring system

Current data subscription for the measuring system being utilized

Provide proof of technical training to operate the measuring system

Have a spray booth with forced drying capabilities

Utilize an OEM approved refinishing system

Provide proof of product training for the refinishing system

Ability to perform pre and post repair vehicle diagnostic scans

Industry Standards – Training & Equipment

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Optional - Aluminum Repair Capable Requirements

Aluminum Clean room

Dedicated aluminum tools

Dedicated aluminum 220V Pulse MIG welder

Dedicated aluminum extraction, dent pulling equipment

Aluminum SPR ( Self Piercing Rivet)

Dust extraction system

I-CAR FOR06 Structural Repair Training Course

I-CAR WCA05 Aluminum GMA (MIG) Welding Certification

Industry Standards – Training & EquipmentToyota

CertifiedGeneral Motors

Ford Certification

CCR CCIAP CCC CARSTAR EDGE

VERIFACTS

Collision Program RedesignThe Collision Program Redesign would segment the supplier market into three tiers, with high performing

suppliers being encouraged and rewarded for behaviours that align with ICBC’s desired outcomes.

Application Process

Tier 1

Tier 2

Entry / Performance Tier

Supplier RequirementsUpdated requirements to enter program and eventually minimum performance criteria would be required to remain in the program

Promotion / RelegationTop 20-30% (percentage still to be confirmed) of suppliers would be determined by KPI score and would be promoted to Tier 1

Supplier AssessmentAll suppliers would go through Assessment Tier for 12 months before being eligible for promotion to Tier 2

RegionalizationSuppliers would be tiered regionally to take into account differences and maintain coverage

Supplier Exit

Non-Suppliers

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Regionalization – Lower Mainland

Customer Access: Volume

Customer Access: Convenience

Shop Fairness Shop Density Regional Comparability

Regionalization Design Factors

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Dense Lower Mainland split into 9 regions previously from 2, for better coverage and to equalize regions across BC.

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Increase from current program.

Regions in the Lower Mainland 1 “Region”

for SVA

Regionalization – Outside Lower Mainland

Customer Access: Volume

Customer Access: Convenience

Shop Fairness Shop Density Regional Comparability

Regionalization Design Factors

Recognizes that shops in larger cities outside the Lower Mainland share similar conditions, so are grouped together in their own geographic regions. The predominantly rural areas

are separate regions.

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5 Other Large Cities in BC 6 Predominantly

Rural Areas

Increase from current program.

Key Performance Metrics

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Customer Experience

Performance metrics based on industry standards relating to estimating and repairing a vehicle. In particular, the writing, supplementing, and submitting of an accurate estimate by a repair facility.

Estimatics

Cycle time, rental costs, and ATS usage for an average estimate. Report on the length of various stages of a repair.

Cycle Time

Scores from reviews ensuring that the estimates submitted by a repair facility are up to the agreed-upon standards as set out by ICBC.Quality Assessment

Performance metrics based on industry standards relating to the repair facility’s ability to provide appropriate levels of customer experience.

Lower than current

program

Higher than current

program

Highest weighting relative to

other KPMs

Higher than current

program

4. Next Steps

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Next Steps

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• Finalize collision redesign program.

• Industry communication in September.

• The new program redesign will be implemented sometime in early 2020.

• The exact date for implementation will be confirmed and shared with you once business process and technology changes are finalized, and training is delivered to support the program.

• All collision repair shops that meet the program requirements are welcome to apply to the new program.

• For non-accredited collision shops repairing regular private, passenger (everyday car and truck) vehicles, direct billing with ICBC will be phased out over two years effective from the start of the new program.

Information Resources

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program redesign enquiry form

MD Business Partners Page

https://www.icbc.com/partners/material-damage/changes-supplier-programs

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