The recession has etched permanent changes into the auto-physical damage industry, according to CCC Crash Course Update 2010 a semi-annual publication written by CCC Information Services Inc. Lead Analyst Susanna Gotsch. Contributing to the situation, according to Gotsch, is the fact that consumers remain burdened with significant debt, unemployment remains high and consumer spending and consumption are still reserved.
Slow economic recovery, in the form of lower claim frequency and fewer repairs, continues to translate into a soft market for the automotive insurance and collision repair industries.
In addition, Gotsch stated: “The Internet and social media have changed the speed and manner in which consumers get their news and communicate, and, perhaps more significantly, changed the expectations and desires of the consumer. Companies need to be even more aware of variances among their customer base by age, demographic, employment situation and geography than potentially ever before. As it often does, technology is leading us into a new era. The key is for shops and insurers to understand and adjust to the changing market, and use the technology to provide customers with a transparent and efficient claims experience.”
To read more of Gotsch’s work, view or download an electronic copy of CCC Crash Course Update 2010 at www.ccc.cccis.com. Click on the “2010 Crash Course Update” section of the home page for additional details.