According to the VACC, assessments by Suncorp can extend from a few weeks to as long as five months, creating financial strain for small enterprises and causing delays for vehicle owners.
“On average, an accident damaged motor vehicle should take no longer than five working days for an insurer to assess once a repairer provides an estimate. Suncorp Group takes anywhere from
three weeks to five months to return an assessment and, in the meantime, the customer and repairer are in limbo,” said VACC CEO Geoff Gwilym (pictured).
The alleged problem of delayed insurance claim processing is not isolated, with the Australian Financial Complaints Authority (AFCA) reporting a significant uptick in complaints related to claim handling delays - a 76% increase. The year 2022-23 saw general insurance complaints jump by 50%, totalling 27,924 incidents.
Gwilym pointed at alleged practices where Suncorp’s companies would inform customers of long assessment waits, offering quicker alternatives if the customer opted for Suncorp-affiliated repairers. This led to customers facing extended delays unless they complied with Suncorp’s preferred choices, it was alleged.
The Chamber criticised these practices for lacking fairness and transparency, adversely affecting both consumers and the repair industry.
Gwilym argued that Suncorp needs to address these operational shortcomings promptly.
“Suncorp must address their systemic failures and operate fairly and transparently with customers and repairers. It’s unfair to consumers and bad for business. Suncorp Group needs to improve,” he said. “Making customers wait five months for a vehicle assessment and authorisation is unacceptable. If staffing is an issue for insurance companies, then the simple message is ‘fix it’. Either hire and train more motor vehicle assessors or use external independent assessing firms.”
In a statement sent to Insurance Business, Suncorp addressed the concerns raised by the VACC, noting its commitment to high standards of service for both customers and repair partners, and adherence to the motor repair code.
“Suncorp is disappointed to hear of the issues raised by the Victorian Automotive Chamber of Commerce, and that they haven’t been raised directly with us,” a spokesperson for Suncorp said. “We take our obligations to our customers, repairers, and the motor repair code very seriously. We hope to work constructively with VACC to address their concerns as a matter of urgency.”
Suncorp recently partnered with the Australian Collision Industry Alliance (ACIA) to address the challenges of workforce shortages and the ageing demographic of professionals in the motor repair industry.
