Collis llision Program Redesign ign May & June 2019 For discussion only 1
Terms of Reference ce • From late May to the end of June, ICBC is hosting road shows throughout the province to engage with ICBC-accredited collision and glass shops on the proposed redesign of these programs. • This presentation is a condensed version of the road show presentation. • From November to May, ICBC consulted with the Industry Advisory Committees, for glass and for collision, on key program redesign concepts. • The mandate for the IAC was program design elements: labour rates were out of scope. • Although IAC and ICBC’s views differ on some aspects, the committee agrees the proposed program redesign is a significant improvement and aims to introduce incentives to drive savings and benefits for both industry and ICBC. • The IACs represent collision and glass shops throughout the province. • For more information about the work IAC has been contributing to, please see Announcements on the Collision redesign page of MD Business Partners at icbc.com For discussion only
Competitio ion Act: Law Complia iance ce ICBC, its employees, the association, association staff and individual attendees (collectively the “Attendees”) give high priority to full compliance with both the letter and spirit of the federal 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 contravenetheAct. If, at any time during the course of a meeting, any Attendee believes that a sensitive topic under the Act is being discussed, or is about to be discussed, they will advise the chair of the meetingand ask that such discussionsstop. Similarly, Attendees at any meeting should not hesitate to voice concerns they may have in this regard. Such discussions must also be avoided before, after and on the “fringes” of meetings. For discussion only 3
Background and Objectives The Case for Change ge ICBC’s Material Damage Program is outdated, does not meet industry standards and lacks the controls necessary to curb escalating claims cost trends that are partly driven by vehicles with increasingly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- Promotes Promotes Ensures safe and Effectively term trends efficiencies for greater proper repairs manages shaping the high-performing partnership and are performed. performance collision repair shops. engagement. and quality. industry. For discussion only
Background and Objectives Feedback ck from Industry Conducting multiple industry pain point sessions provided valuable feedback to inform design of the new program. Feedback included: “ “ Accident, damage “ ICBC needs to consider ICBC needs to details from FNOL supporting OEM improve the “ “ need to be “ procedures. response times. improved. “ “ “ There is a disconnect Site visits create Support for shops betweenICBC and unreasonable needs to be “ “ repair shops regarding delays. improved. “ judgement repair times. For discussion only 5
Background and Objectives Industry y Advis isory Committee 10 10 Total >10 1000 00 Sticky notes 15 15 Industry sessions and ideas Attendees ICBC CBC Industry Consultation Refine Develop detailed Finalize problem Consult on design program and Begin high- statement through concepts implementation level design and success working with IAC activities sessions with factors industry For discussion only 6
Background and Objectives Key Conce cepts Introduce enhancements to Introduce a new performance- 1. 4. supplier qualification and program based tiering g model with requirements redefi fined regions Enhance the governance controls and management of f suppliers that Introduce new w FNOL scripting 2. 5. are not complying with ICBC’s and enhance shop locator policies and shops that are frequently in performance review Implement new quality 3. 6. Update customer experience assurance forms and protocols survey For discussion only 7
Program Highlights Tierin ing Overvie iew Shop tiering aims to promote improved performance by rewarding g high gher performers • Top 20-30% performing shops per region • A fixed percentage of shops by region Tier r 1 • Highest level of benefits • Majority of shops would start here on Day 1 • A minimum performance metric threshold is required Tier 2 • Increased efficiencies and benefits over the existing program Tier 3 • New program participants during their evaluation period Entry/ y/ • Suppliers who have been placed in performance review Perfor ormanc nce Tier • All suppliers must meet new minimum program requirements Application Process For discussion only 8
Program Highlights Tierin ing Benefit its Promotion Removal Enjoys highest level of through FNOL of 2-Hour autonomy Tier r and ICBC CBC shop Rule 1 loca cator Tier 1: Top op 20 20-30% of sho hops ps by y region n based on KPI perfor ormanc nce Re Removal Included second in Some review of 2-Hour shop locator list autonomy Tier 2 Rule specific to o region on Tier 2: Mini nimum um KPI thr hreshol hold Assessment Entry • Lowest reviewautonomy • Continued poor • No review autonomy Tier 3 • Regularly scheduled performance results • Removalfrom Entry/ y/ reviews in development rate, Perfor ormanc nce Tier locator • Re Retains 2-Hour Rule and subsequently • Added to focus list • Bottom of shop locator referral to Supplier For discussion only 9 list Conduct Co Committee
Program Highlights Moving g between the Tiers Prom omot otio ion n to Tie ier 1 New shops in the top 20-30% of performance rankings on Tie ier 1 Annual Tiering date would be promoted or remain in Tier 1. Prom romot otion/ n/Relegation n to Tier 2 Tie ier 2 New shops meeting Tier 2 threshold by end of the Assessment Period would be promoted to Tier 2. Assessment nt Perio riod (NEW SHOPS) Entry /Performance Tie ier KPI data collected during a 12-month Assessment Period following shop qualification. ICBC BC c.a.r shop VALET X Current Programs Exit from rom Prog rogra ram Second phase out New shops that did not meet Tier 2 performance threshold would exit ICBC c.a.r sh shop the program after the Assessment period, and would wait 12 months First phase out to re-apply. Base se Collis lisio ion Non-Supplier Supplie iers Facilities For discussion only 10
Program Highlights Regionalization – Lowe wer Mainland Regionalization Design Factors Customer Access: Customer Access: Shop Fairness Shop Density Regional Comparability Volume Convenience Dense Lower Mainland split into 9 regions previously from 2, for better coverage and to equalize regions across BC. Regions in the “Region” 8 1 Lower Mainland for SVA Increase from current program. For discussion only 11
Program Highlights Regionalization – Outside Lowe wer Mainland Regionalization Design Factors Customer Access: Customer Access: Shop Fairness Shop Density Regional Comparability Volume Convenience 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. Other Large Predominantly 5 6 Cities in BC Rural Areas Increase from current program. For discussion only 12
For discussion only Program Highlights Minim imum Progr gram Requirements – Equip ipment & Train ining Equipment Training • MIG/MAG welder • I-CAR Gold Class • Resistance Spot Welder (STRSW) • Trade qualifications • Pulse MIG welder • OEM repair procedures • Dedicated universal fixture system, • Proof of training in Silicon Bronze MIG straightening rack, or bench • Proof of technical training for measuring systems • Simultaneous, three-dimensional, electronic vehicle measuring system • Proof of product training for refinishing systems • Diagnostic scan tool • Proof of calibrations National Third Party & Manufacturer Certifi fication Programs • ICBC would not promote any certification programs • ICBC would accept certification programs • ICBC would verify requirements if the shop does not that meet ICBC’s minimum requirements have a certification for application and renewal purposes 13
Program Highlights Key Performance Metrics Performance metrics based on industry standards relating to estimating and repairing Lower than Estimatics a vehicle. In particular, the writing, supplementing, and submitting of an accurate current estimate by a repair facility. program Higher than Cycle time, rental costs, and ATS usage for an average estimate. Report on the length Cycle Time current of various stages of a repair. program Highest Scores from reviews ensuring that the estimates submitted by a repair facility are up to weighting the agreed-upon standards as set out by ICBC. relative to Quality y Assur uranc nce other KPMs Higher than Performance metrics based on industry standards relating to the repair facility’s ability Custom omerExpe perienc nce current to provide appropriate levels of customer experience. program 14 For discussion only
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