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50% of All Windshields Being Replaced Can Be Repaired

    ST. JOHNS, Mich., April 18 Well over 50% of all auto glass
damage can be repaired says Ron Zyzelewski, President of Quest Claims Service
in St. Johns, Michigan.  "The insurance industry and ultimately consumers
could save millions of dollars annually if they simply 'repaired' instead of
replaced a windshield with minor damage."
    During the late 1990s, in an effort to become efficient and reduce costs,
many insurance companies contracted out their glass claims processing through
third parties.  "Over 90% of these outsourcings ended up in the hands of
people who were in the glass business," says Zyzelewski.  "These companies
liked the idea they were able to direct their business to either their own
glass stores or glass shops using their glass, and the insurance industry was
happy to rid itself of call center management and expensive, time consuming
nuisance claims."
    As a direct consequence, glass shops and glass manufacturers not
affiliated with network programs were left out in the cold.  With reduced and
declining business glass shops resorted to direct-marketing techniques to
attract business resulting in the insurance industry paying out millions of
dollars more than necessary.
    According to Terry Miller, Vice-President of Quest, "There's an obvious
conflict of interest as well because business is being directed.  In effect,
you have the foxes guarding the hen house, so-to-speak.  Let's say a
customer's windshield is struck by a stone producing a chip.  The customer
calls his insurance agency to report it.  The call is answered by a call
center operated by a glass company.  They offer to replace the glass, the
customer goes to the shop they recommend, which happens to be owned by the
glass company or, has an agreement to buy their glass.  The windshield is
replaced at a cost of $350.  Let's change the scenario: The same customer gets
a stone chip, calls the insurance company, this time the insurance company is
operated by an independent call center, with no allegiance to a glass
manufacturer.  This time the customer is informed of the option of getting the
glass REPAIRED.  Total cost: $60.
    "There's no incentive for the glass manufacturer to repair a glass
windshield, so they're unlikely to offer this option to their 'captive'
audience," says Zyzelewski.  "They not only guard the proverbial hen house,
they now own it."
    "Even regional insurance companies can improve their bottom line by
outsourcing their call center operations to an administrator not involved in
glass manufacturing or installation.  Greater program compliance is achieved
with a neutral administrator, which means more invoices are received at
targeted pricing, windshield repairs vs. replacement are elevated, and
friction costs are virtually eliminated," says Miller.  "After switching to an
independent call center, our savings for glass repairs and replacement in the
last few years has been in the six figures annually," says Ray Rose, Claims
Manager of Hastings Mutual in Hastings, Michigan.  "We found we lowered our
average invoice and increased the repair ratio, further driving down costs."
    Quest Claims Service, a division of Quest Software Services Inc., operates
call centers for eleven insurance companies in the Midwest, and has expanded
services to expedite the handling of towing, homeowners and other property
damage claims 24/7.  Located at 106 W. Tolles Road, St. John, Michigan, 48879.
For more information call 800-541-2593 or visit:  http://questsoftware.com