Research reveals untapped potential of reclaimed parts
5th April 2023Tweet
A new report published by e2e Total Loss Vehicle Management has underlined the vast potential of reclaimed parts and a growing appetite among insurers to increase usage.
The e2e Reclaimed Parts Research Report found that the insurance sector is increasingly embracing the use of reclaimed parts as part of their sustainable strategies, with 100% of insurer respondents already promoting their use now or intending to within 12 months.
However, the report revealed that bodyshops still lack confidence in reclaimed parts availability (60%), quality and work provider approval (32%). As a result, 66% of bodyshop respondents said they use reclaimed parts in less than 10% of jobs.
The potential though is huge, with the research also revealing that bodyshops believe reclaimed parts could be used in nearly every job.
At the moment, the use of reclaimed parts is made solely by the repairer 39% of the time, jointly with the insurer and policyholder 20% of the time, and solely by the insurer 22% of the time.
Jim Loughran, CEO at e2e, said, “The reclaimed parts market is evolving rapidly and many of the historic issues faced are reducing. This research provides the opportunity to understand those challenges remaining and informs our thinking on how best to resolve them, in order to deliver maximum efficiencies and mutual benefits to insurers and bodyshops.
“Bodyshops’ needs require addressing for the market to mature effectively and ease of sourcing, availability and quality are key to that requirement. We are designing a next generation reclaimed parts solution, capable of integrating with and responding to parts requests raised through existing systems in use in the market.
“We will provide access to the inventories of quality graded, warranty assured, provenance tested, OEM reclaimed parts held by our network members throughout the UK. This is the largest, sustainable inventory of reclaimed parts stock standing at 500,000-plus and comes with the assurance afforded by vehicle recyclers certified to the UK Standard for Reclaimed parts. As a network, with UK wide scale and reach, we are uniquely able to satisfy market needs, providing the quality of parts required at the time they are needed.”Tweet