United States. Opus IVS announced the results of its industry study to better understand how the strategic adoption of diagnostic solutions significantly improves the efficiency and profitability of collision repair shops.
State-of-the-art diagnostic solutions are emerging as key drivers of efficiency in addressing insurance reimbursement challenges and technician shortages, said Herron, president and CEO of Opus IVS. "Our study underscores the transformative potential of diagnostic solutions and we remain committed to driving efficiency gains and ensuring the long-term viability of collision repair shops."
Based on the results of the study, it was concluded that diagnostic solutions have transformative potential in addressing significant challenges faced by collision repair shops in various segments. Key findings indicate that the right diagnostic solution can minimize issues related to insurance reimbursement processes, reduce technician shortages, and improve overall operational efficiency.
Insurance Reimbursement Challenges
One of the main obstacles identified in the study is the prevalence of insurance reimbursement issues, which affect approximately 33% of repair orders (ROs) on average.
These challenges stem from discrepancies in the assessment of repair costs, delays in claims processing, and disputes over coverage. The complexity of modern vehicles, particularly with the integration of ADAS, further exacerbates these problems. However, the study highlights that selecting the right diagnostic scanning partner can mitigate these challenges, potentially reducing insurance reimbursement issues by up to a third (33%).
Navigating the Technician Shortage
Technician shortages have also been a persistent challenge for collision repair shops, with more than 70% of shops facing a shortage of one or more technicians, according to the study. Factors such as an aging workforce, insufficient training programs, and evolving skills requirements all contribute to this shortage. However, the study found that partnering with the right diagnostic solution provider can reduce total shortages by up to 40%.
"As vehicles become increasingly complex, collision repair shops continue to face unprecedented challenges in delivering timely, high-quality repairs, and these results tell us that the right diagnostic solution can not only help streamline the repair process, but also address critical issues such as insurance reimbursement challenges and technician shortages," said the president and CEO of Opus IVS.
