He replaces Ron Nicholson who will retire on March 31.
Tagg was previously divisional director at insurance broker THB Clowes. Before that he ran his own company, Risk and Insurance Services Ltd, before it merged with THB Clowes in 2002.
Nicholson retires after 21 years with the VBRA and 50 years in the body repair industry.
"Malcolm has an intimate understanding of the interaction between the insurance world and the repair industry," says VBRA board of management chairman Bill Neish.
"It is this together with his broad experience in successful business management that made him our candidate of choice."
Tagg says: "Ron Nicholson will be a very hard act to follow but I look forward to working with the directors and head office staff in support of members, as well as assisting the development of the Association, to the best benefit of all active parties in the industry for whom we aim to deliver a win-win situation."