Catastrophe Management
Case Study

Our motor manufacturer client suffered a severe hail loss. 5,000 vehicles, held in two storage compounds in close proximity to each other, were damaged.

To further complicate matters, the vehicles were assigned to 35 different European importers and local sales companies.

Our client’s insurers ceded operational control of the event to Sevatas and we immediately initiated the following steps:

  1. 1. Agreed a communication strategy to the various sales companies and importers
  2. 2. Initiated an initial compound survey to establish the number of vehicles impacted, to ascertain severity levels and identify appropriate repair options This survey, of over 5,000 vehicles, was completed within 3 days of the event occurring and allowed insurers to accurately reserve for the loss and for Sevatas to establish the scale of the repair operation required.
  3. 3. Initiate a tender process for the nominated repairers and appoint the repairer We invited 10 potential suppliers (Paintless Dent Repairers (PDRs)) to quote for the repair work. After consideration, we appointed a single supplier to complete the work and agreed a contract with them. This contract included a range of bonuses and penalties relating to their performance (quality and timeframes).

The repair process was challenging and required careful oversight. We set the PDR a target of completing 100 vehicles per day. Our Incident Manager spent most of the following 8 weeks on site, overseeing the repair process and resolving the numerous day to day challenges we faced.

Issues we resolved included:

  • The establishment of the repair process and required facilities (such as electricity, toilets, food, water)
  • The creation and implementation of a vehicle pulling > washing > repair > checking process involving the compound operators, the repairers and ourselves
  • The prioritisation of vehicles destined for certain territories over others
  • The identification of sold units and their prioritisation
  • The availability and supply of replacement parts (such as roof lining clips etc.)
  • Dealer and distributor communication

In order to smooth the repair process, we initiated a daily phone call with all interested stakeholders as well as delivering a daily throughput report. This helped to identify blockages and the steps we needed to take to remove them.

All repaired vehicles were subjected to an end of line quality check to ensure the vehicle could be sold in ‘as new’ condition. Where the repairs did not meet our client’s standards, the vehicles were returned into the repair process once more.

More than 10% of vehicles failed our initial quality check.

Benefits of our service

  • Complete, from start to finish, incident management requiring little client or insurer involvement
  • Objectives of cost control and repair throughput met
  • Blockages identified and resolved
  • Vehicles sold into the market in ‘as new’ condition quickly, maximising dealer and retailer satisfaction

  • Hail event:

    5,000 cars damaged by hail storm in large compound in northern Europe Total repair costs: €5.5m

    Services provided:

    • A. First response – survey
    • B. Arranging repairs
    • C. Repair process management
    • D. Post repair quality checking