AUTHORISATION

SECTION I
FUNDAMENTALS OF THE UBI MARKET
a. Repair costs
The claim costs for motor insurers have been rising steadily across Europe and this
is in part due to the rising prices of spare parts and repairs.
It is estimated that automotive OEMs generate up to a fourth of their net income
from spare parts. They leverage the fact that competition virtually does not exist in
this market as the customer cannot choose his/her part supplier. The prices of
spare parts have increased by 22% on average in the last decade in the European
Union.
However, the EU market is not uniform in that respect.
Licence
agreement
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In France, the price of spare parts (excluding tyres) has increased by 25% between
January 2005 and October 2010 - as shown in the chart below. In addition, 85% of
bodywork repair revenues are generated by insurance claims and the repair
centres controlled by car makers generate 53% of the sector's revenues.
AAAA. Reserved
This led the French Competition Authority to launch an investigation in July 2011
and a public consultation on the subject in April 2012.
for employees of
In October 2012, the Authority recommended the market for visible spare parts
(hoods, bumpers, windshields, mirrors, etc.) to be gradually opened up in the
coming years. Although its recommendations are not binding, they could lead to
law-making initiatives at the French or European level.
BBBB
Fig 1.22: Annual price variation of automotive spare parts & accessories (%)
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2
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employees. Distribution to third
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Source: European Central Bank
parties is prohibited
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2010 2011 2012 2013 2014 2015
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