Other insurers are expected to follow Allianz’s lead in using recycled parts in motor vehicle repairs.
Allianz this week announced it would launch a permanent recycled parts programme, following a successful pilot project.
It claimed it was the first UK insurer to offer such a scheme, which offered policyholders the chance to use recycled parts to repair vehicles five years of age or older.
During its pilot scheme, with a small number of repairers and distributors in northern England, 40% of Allianz policyholders chose to use recycled parts to repair their vehicles.
The insurer said using recycled parts saved the company £240 per £1,000 claim.
British Vehicle Salvage Federation (BVSF) secretary general Alan Greenouff said now Allianz had officially “dipped its toe in the water” other insurers would likely follow suit.
He said: “If one insurance company can prove it can be done successfully, surely others will sit up and take notice. This is good news. The availability of parts is there but insurers will still have to sell it to policyholders. It won’t be accepted by everyone but they’ll have to explain the benefits.”
With so much focus on climate change, Greenouff said he believed the recycled parts programme would make Allianz attractive to potential customers who were environmentally aware.
In the past, some insurers, including Norwich Union, have expressed concern over adopting recycled parts programmes questioning safety, interest of policyholders and access to, and availability of, parts.
Allianz added that safety and quality of repair would not be compromised as the recycled parts used are not structural, subject to wear or have a safety function, such as brake and steering components.
The recycled parts include lamps, radiators and internal door components.
