Transcript Document

ARA Airbag Protocol
Providing Assurance Needed by Carriers
Inspection & Training System for OEM Non Deployed Airbags
Implementing the ARA Protocol;
The International Standard for Replacement Airbag Modules
New Options for P & C Insurers
Presented at URG & Pinnacle Training Conference , Englewood, CO 80112
March 24 2007
ARA Airbag Protocol

Goal of Protocol:
– Meet insurer
expectations for
standards
– Reduce total losses
which hurt the sales of
non airbag parts
– Boost members’ airbag
sales to insurance paid
collision repairs
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ARA Airbag Protocol

ARA Airbag Protocol offers the insurance & collision
industry assurances that:
– The part has been handled by trained and certified
technicians
– New qualification created; “Certified Airbag Technician”
(CAT)
– Standard work is practiced
– Part matching application by MMY and VIN
– Detailed examination of each part; multi point
inspection made
– Comprehensive records kept on each part inspected
– Certificate of Inspection for each part
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Replacement Airbag Market: Challenges
& Solutions

Replacement airbag market:
– Special circumstances in replacement airbag market
• No aftermarket airbag option available
• Monopolistic conditions exist as a result
– Carriers captive to new dealer airbag prices
– Book value of vehicles decline w/ age, but prices of new
OEM airbags do not decline in sync w/ the value of the
vehicle (as a rule)
– The older a vehicle is, the more likely new dealer bought
bags will total the vehicle
– Carriers insuring older vehicles (> 5 yrs old) most
exposed
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Replacement Airbag Market: Challenges
& Solutions

Competition is required in airbag market to moderate prices (as
with any other)
 Only alternative to new bags is non deployed OEM airbags from
vehicle recyclers
 Carriers demanding compliance with written Standards from all
vendors, incl. aftermarket parts suppliers, safety glass suppliers,
wheels etc
– Airbags are the latest entry on the list of safety related auto
parts for which adoption of written Standards precede
mainstream use by P&C Carriers
– Replacement safety glass well illustrates. Windshield glass
both a safety item and key part of the airbag system. National
standards adopted in replacement glass industry paved the
way for non dealer installations and use of aftermarket glass
alternative parts.
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Replacement Airbag Market: Challenges
& Solutions

Rate of totals is growing, with direct impact on future growth rate
of shops and recyclers alike:
– Total out rate 1999: 8~9 % of estimates
– Total out rate 2007: 19~20% of estimates
Data source:
CCC/insurers
 What are the main characteristics of a total loss vehicle in order of
importance? *
– Vehicle driveability
– Odometer reading
– Airbag deployment
* Source: CCC , Crash Course 2007
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Cost/Benefits


Costs
– No cost to carrier to participate in program
– Pricing varies with model; always at an attractive discount to dealer new pricing
Benefits
– Reduce Materials Costs
– Save totals
– Risk Management
• No auto part is “risk free”
• ARA Protocol ensures best practices always used
• Ensures equivalent performance to OEM new
– ARAPro bags are 100% OEM parts
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• Rigorous data retention on each part inspected
• Liability exposure managed through:
– “Do No Harm”; record every step taken
– Database on each part
– Inspection records
– Each member carries product liability insurance
• Informed consent, always; policy holder explicitly authorizes carrier and
shop to acquire and install unit
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Airbag Resources.com

Protocol is
implemented through
AR.com site;
 Training software
 Testing
 Inspection
 Reporting
 Restricted to ARA
members
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Why develop Airbag Resources?
•Custom software turns the Airbag Protocol into a daily tool used in operations
•Consistent approach throughout the recycling industry
•Real time data collection and reporting
•Facilitates e-learning for techs
•Airbag training
•Training, testing, and certificates completed on line
•Safety
•Haz mat training, testing and certificates completed on line
•High quality work
•Part traceability
•Automatically screens parts for govt Recall campaigns
•Comprehensive database on all parts inspected
•Meets insurer expectations for Standards, training, inspection & data retention
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Using Airbag Resources; Branding complying
units, “ARAPro”
•Inspected airbag inventory to be marked “ARAPro” in
the comments & notes fields in Pinnacle and
Hollander
•“ARAPro” flows from inventory management
systems to estimating systems operated by
Hollander and Pinnacle, but, carriers have the
option to disable non approved components in
their user menus
•ARAPro soon to be available on Car Part .com
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Airbag Resources/Training of
Techs
•Technicians must be trained and certified before
extracting, handling, inspecting or shipping airbags
•Tech take a test through Airbag Resources which
grades their performance. Once acceptable level is
reached employee is a Certified Airbag Technician
(CAT)
•Non certified personnel not allowed to work with
airbags
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Airbag Resources/Training of Techs; log on
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Airbag Resources/Training of Techs
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Airbag Resources/Training of Techs
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Airbag Resources/Training of Techs
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Airbag Resources/Training of Techs; Success on test leads to
award of Certified Airbag Technician (CAT) qualification for
technician
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Airbag Resources/Training of Techs; Haz Mat Regs
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Airbag Resources/Training of Techs; Haz Mat
personalized certificate
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Inspection Software
•Airbag Evaluation Management System :
•Ensures standard approach to every airbag inspected
•Guides techs on to look for
•Requires confirmation at every point that parts meets
requirements else cannot proceed
•Data gathered and stored in real time
•AEMS generates a file on every airbag inspected
•Reports may be generated at any time
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Inspection Program log on; CAT # required to
log on
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Inspection Program; Data Entry
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Inspection Program; Data Entry
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Inspection Program; Checklist
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Inspection Program; Real Time Recall Check
Tech clicks this button for real time
Recall Check against federal (NHTSA)
part recall database
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Certificate of Inspection; when all steps
completed successfully
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Collaboration with Carriers

Our Message to insurance carriers…
– Reduce repair cost, while managing liability
• Liability managed using written Standards, Training,
Database, Inspection Reports,Certified Technicians
– Create choice, improve competition
– Offer options to consumers where none
existed before
– ARAPro bags suit some cases, (not all), e.g.:
• Borderline total out repairs
• New OEM parts not available from dealer
– Customer always approves (informed consent)
– Body shop also approves and consents
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