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Labour only pioneer parts company with insurer

The architect of so-called ‘labour only’ schemes for bodyshops, David Neave, claims services director of the Royal & SunAlliance Insurance Group, is to leave the UK’s third largest motor insurer by mutual consent.

Commenting on Neave’s departure, Rod Kitchen, UK director, claims at Royal & SunAlliance said: “Over the last two and a half years, David has played a key role in helping me establish the new UK claims business. David and I recognize that the opportunities for him to utilize his key strengths are now limited, and this would be a good moment for him to move on to new challenges.”

Neave leaves among rumours that his labour only bodyshop experiment is in tatters. Contracted repair volumes are said to have not materialized and there are suggestions that repair costs are sprialling out of control.

An RSA repairer told AM: “I’m not surprised he’s gone. RSA sacked a number of good repairers to try to make this scheme work. Repairers are not happy.”

In December last year, Northwest-based body repair group Howard Basford walked away from the deal saying: “We’re not against the concept but the commercial framework needs to be robust and mutually beneficial.”

Howard Basford worked on a pilot version of RSA’s new repair cost model. Ultimately, the insurer decided to award a five-year guaranteed volume contracts to bodyshop groups Nationwide and Gemini.

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