Call for urgent insurance industry summit

Public news

Last week the Motor Trade Association SA/NT (MTA) took national action, alongside the Motor Trades Association of Australia (MTAA) and other state and territory associations to call on the Insurance Council of Australia (ICA) to meet for an urgent summit to address increasing cost pressures.

Rising costs in goods, parts, consumables, labour and transport has been a hot topic of discussion in the automotive industry – particularly in the MTA SA/NT's Body Repair Specialists Division.

Since the onset of the COVID-19 pandemic, the collision repair industry has been reporting substantial cost increases well beyond the control of small businesses, such as in automotive paint, parts, labour and transportation costs.

Exacerbating the issue are ICA member companies who have not kept up with cost realities, in some instances with repairers not receiving increased remuneration for up to 14 years

Locally, the MTA has reached out to the RAA in South Australia and TIO in the Northern Territory as ICA members, to keep pressure on for the national summit to occur. Key government bodies in Consumer Affairs and the Office of the Small Business Commissioner in both jurisdictions were also alerted to the issue.

The MTA will be keeping the collision repair industry informed as discussions progress.