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Shane Loiselle
Manager MD Programs
Troy Campbell
Manager MD Programs
Sonny Senghera
Manager Stakeholder Relations Claims
Strategy and Programs
Welcome
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ICBC’s Material Damage Program is outdated, does not meet industry standards and lacks the controls necessary to curb escalating claims cost trends that are partly driven by vehicles with increasingly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.
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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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
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