Robin Challand, Claims Director at AGEAS, one of the UK’s largest car and home insurers, provides ATF Professional with a current view on the use of reclaimed parts across the supply chain.
The effect of increasing costs on reclaimed parts
Inflation and the war in Ukraine have added to the challenges many repairers are seeing around new parts availability and general repair costs, so having a well-established green parts programme has been incredibly helpful in ensuring we can get our customers’ cars repaired and back on the road despite those challenges. Having built that circular supply chain back in 2020, we have been able to access a supply of green parts.
Green parts can play a part in helping us to mitigate increased costs to some extent. If a green part is quicker and cheaper to get hold of than a new part, then we can settle a customer’s claim quicker and for less. Ultimately that’s what it’s all about, getting customers back on the road and doing something good for the environment at the same time.
Current technology and meeting supply chain requirements
Our repairers are already able to quickly and easily order green parts through the portal offered by our green parts supplier. The Green Parts Specialists have been continually gathering data on the kind of parts our repairers regularly need, so they can make sure they have more of those parts in stock. Being able to triage vehicles using the real-timing availability of green parts is the next important step. That will help us to make even quicker decisions that will keep more vehicles on the road and repairable.
Feedback from our repairers shows that the vast majority of customers are happy to have green parts fitted, especially when they understand it can get them on the road quicker. That’s been the feedback from the outset, and it helps that we take the time to explain the benefits to customers.
Commitment to Environmental, Social and Governance, and the adoption of reclaimed parts
We are committed to supporting our customers, our people and our partners, ensuring that everything we do contributes to a more sustainable society. Our green parts initiative is one of the ways we can do that, and it has benefits for the customer as well as the environment.
As well as reducing the amount of glass, metal, plastic and energy needed to make a new part, it means parts that are already in existence get a second life, extending their use and reducing unnecessary waste. It also reduces the likelihood of damaged cars being scrapped because the cost of a new part outweighs the value of the vehicle.
Using green parts also benefits our customers. This is because it can be faster for us to source a green car part than to order in new parts, especially if that new part needs to be imported from overseas. It also helps us keep our costs low, which ultimately helps us keep premiums as low as possible for our customers.
The future of reclaimed parts
Our ambition is to use even more green car parts in our repairs. We are also looking to continue to learn and innovate from different pilots with repairers and looking at what technology and MI can teach us to get better at being the best. We hope to use green parts in 30% of our vehicle repairs in 2023.