Integrity Collision Network has signed a new partnership agreement with Johnson/Unifund Assurance. Negotiations with Wayne Blair, Atlantic Region auto appraisal supervisor for Johnson/Unifund, are said to have focused on customer service and quality of repair rather than being concerned with labor rates and material costs.

Integrity Collision Network (ICN) consists of six Nova Scotia collision centers who have created their own marketing and purchasing group.

In a prepared statement, ICN and Johnson/Unifund note that building trust and closing gaps in the industry relationship is of paramount importance to both organizations. "Forward thinking and flexibility are the keys to developing a more human than monetary approach to relationship building. Our shared vision for the future will undoubtedly provide an uncompromising service to our shared customers."

The two organizations are pleased with the new agreement and look forward to a relationship based on trust and mutual respect.

ICN's purpose is to collectively market its membership to customers, including insurance companies, in a fair and ethical manner. The group includes Carroll's Collision, The Coachworks Incorporated, Keizer's Collision, MacPhee Collision, O'Regan's Collision and Wolf Collision. All serve the Halifax region.

(see headlines)

Over 30 attendants were present at a recent 2-day workshop presented by the Collision Associates repairer network in Halifax. The workshop, which focused on sales and consumer behavior was led by Scott Wheeler, a 20+ year veteran in the collision repair industry from Minnesota. Scott spent years as a shop owner, and in the Marketing Dept of ABBRA, and now works as a BDM with Akzo Nobel.

Specifically Scott addressed the issues of the difficulties in changing traffic patterns to today's collision centers, "the closing ratio must be higher given that it can take months and years for other marketing initiatives to direct more traffic to a shop.

Scott spoke passionately about his experiences in the collision repair industry and his learning by consulting with many shops throughout the USA. According to Scott, you have to think creatively "don't tell me an idea won't work unless you can propose a better way" This type of statement set the tone for a very informative, innovative and unprecedented session.

Collision Associates partners and front line staff and managers participated in breakout sessions with jobbers. Shops learned that it is about "what you do beyond fixing the car that really counts and that creates a truly memorable experience for the client" Participants teamed up to create new ways of presenting to the consumer, focusing on education to increase closing ratios. Developing strategies to gain commitment form customers was also a key focus. Scott Wheeler also spent half a day explaining the
benefits of tracking customer satisfaction through and independent Research Company and how to use the report as a key marketing tool.

"The training was a tremendous success says terry Hill", of The Coachworks Limited, a Collision Associates partner - "Scott provided many ideas that will improve my business"

Collision Associates is a repair network comprised of independent and dealer collision centers committed to business development and customer satisfaction.

Nova Scotia Auto Reform Backgrounder

In May 2003, Bill 45 amending the Insurance Act is introduced in the Nova Scotia Legislative Assembly freezing rates retroactively, including rates that have already gone through the government review process. A legal opinion questioning the legal validity of Bill 45 is obtained from the prominent Atlantic law firm of McInnes Cooper and is provided to government. Bill 45 is passed by government on May 22, 2003.

That same month, the Utility Rate and Review Board (UARB) releases its findings pursuant to a government commissioned review of auto insurance premiums in Nova Scotia. Using independent actuarial analysis, the UARB concludes average premiums in Nova Scotia are not excessive in light of rising claim costs.

On June 25, 2003 Minister Russell holds a press conference announcing the government plan to reduce rates by 20% and releases its report "Reducing Rates: A Plan That Works". During the press conference, the Minister makes it clear that premium reductions would be achieved by eliminating pain and suffering awards for minor injuries. George L. Cooke, President and Chief Executive Officer of The Dominion Of Canada General Insurance Company provides comments to media that commensurate reductions in claims costs are necessary to produce the government's promised 20% reduction in rates.

In a July 2, 2003 letter to Minister Russell, Mr. Cooke emphasises the need for rates and claims costs to be considered in tandem, and encourages an open dialogue with government to achieve a product reform that will work for Nova Scotians. Minister Russell's July 9th reply to Mr. Cooke advises that government has engaged an independent actuary to examine the impact of the legislation and confirms its commitment to a collaborative dialogue.

Bill 1 is introduced for first reading September 26, 2003. The draft Bill provides for an across-the-board 20% rate roll back from rates already frozen as of May 2003. The Bill also includes a cap on minor injury claims that is similar to legislation introduced in New Brunswick.

The Liberal Opposition Party refuses to support the threshold on minor
injury claims as contained in Bill 1.

On September 30, 2003, a task force report to the Atlantic Premiers is made public. "The Atlantic Canada insurance harmonization task force report to the Atlantic Premiers" concludes that the core problem of rising premiums is product design and rising bodily injury costs, and the solution is to balance acceptable claims compensation restrictions with affordable rates. The task force also concludes that a competitive private delivery system and not a monopoly supplier better serve the needs of consumers.

Bill 1 is sent to the Law Amendments Committee. The Dominion of Canada appears before the Committee and engages in discussion with government. The Dominion provides evidence and independent actuarial analysis to demonstrate the financial impact of the Bill. Dominion demonstrates the need for a fair and individualized application of rate reduction and the need to retain the claims costs measures introduced in the Bill as necessary to achieve the government's rate reduction promises. The Dominion encourages the Nova Scotia Government to continue with the dialogue and commends the Atlantic Canada task
force report. Throughout these discussions, the government confirms its understanding of the issues and indicates it continues to work on a solution.

October 21, 2003 a revised Bill 1, as amended by the Law Amendments Committee, is introduced. The amendments significantly erode the threshold for injury claims above the cap. The report of the independent actuary retained by government estimates the amended threshold reduces the claims costs savings to 3%, far short of the 20% needed for government promised 20% reduction. No amendments are made to deal with the application of the rate reduction. The insurance industry advises government that a forced 20% price reduction and an 18 month freeze combined with no cost savings is unworkable.
On October 28, 2003 the Nova Scotia Government announced that Bill 1 had received Third Reading.