Farmers Insurance Drops Most Favored Customer Clause from New DRP Agreements - BodyShop Business

Farmers Insurance Drops Most Favored Customer Clause from New DRP Agreements

Dan Risley, president and executive director of ASA, writes thank you letter to insurer as elimination of MFN clauses has long been a policy priority for ASA.

Following Farmers Insurance’s decision to remove Most Favored Nation (customer) clauses from insurer direct repair programs, Dan Risley, Automotive Service Association (ASA) president and executive director, sent a letter of thanks to Jeffrey Dailey, Farmers’ chief executive officer.

Generally, Most Favored Nation (MFN) clauses stipulate that should a provider give a bottom-line discount, rebate or other estimate discount on the repair costs to any insurer, the same or better bottom-line discount must be given to the insurer proposing the DRP agreement. The elimination of MFN clauses has long been a policy priority for ASA.

“We are very pleased that Farmers has removed the MFN clause from the DRP agreements," said Risley. "I want to personally thank you and the Farmers team for your leadership in eliminating these clauses, which have become a significant burden for ASA members.”

ASA’s collision leaders have made several trips to Washington, D.C., to discuss eliminating the clauses with congressional leaders, the U.S. Department of Justice and the Federal Trade Commission.

More information:

Taking the Hill


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