IAG calls for cooperation to tackle rising car claims cost
Insurers have pressed for closer collaboration with carmakers as increasingly complex vehicles and parts supply challenges drive up claims costs.
IAG, the only Australian member of Research Council for Automobile Repairs (RCAR), says it is committed to working with the car industry, governments and other stakeholders to improve road safety, reduce repair costs and support more efficient vehicle repairs.
“We undertake detailed vehicle dismantling to understand and improve repair time guidance, explore emerging repair techniques and innovations, and assess how new vehicle technologies affect repairability, parts costs and safety outcomes,” IAG Research Centre head Shawn Ticehurst said.
“Vehicle construction and technology is rapidly evolving, delivering significant improvements to the driving experience. However, those benefits need to be balanced with designing vehicles that can also be safely repaired.”
IAG says it backs RCAR’s call for the industry and auto manufacturers to step up cooperation in vehicle design, driver assistance system and repair methods.
RCAR is a 22-member global club of automotive research centres owned or operated by insurers or groups of insurers.
The grouping met earlier this week in Mexico City for an annual gathering to discuss current developments in vehicle design, damage prevention, and crash risk.
“As repair costs continue to rise globally due to increasing vehicle complexity and parts supply challenges, RCAR members are encouraging manufacturers to consider repair outcomes earlier in the design process, alongside wider adoption of safety technologies and repair practices that prioritise repairing, rather than replacing, damaged components,” IAG said.
According to RCAR, modern vehicles have become significantly more complex as a result of connectivity, driver assistance systems and new propulsion technologies, especially electric vehicles.
“When damage occurs, that complexity often leads to more extensive repairs and higher costs,” RCAR said.
* In a separate release, IAG-owned NRMA Insurance urged drivers stay vigilant ahead of the long NSW weekend amid forecast of stormy weather over the next few days.
The insurer received more than 900 motor collision claims in NSW for the 2025 and 2024 Labour Day long weekends, which typically see higher traffic.
“This weekend is shaping up to be one of the busiest on NSW roads, with NRL Grand Final crowds, long weekend travellers and families making the most of the school holidays all hitting the road at the same time,” NRMA EGM claims Luke Gallagher said.
“Drivers may encounter a mix of weather conditions over the next few days, so it’s important that drivers adjust their driving accordingly.
“It's well established that traffic incidents increase during long weekends as more people travel longer distances and spend more time behind the wheel.”