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With the news that AIG is on the brink of collapse (on the front page and just about any news channel on the planet), which is not an unprecedented event in the industry…
Does anyone else recall the collapse of Candy Covercare or any other insurers collapsing?
I can recall them in the last recession we had, some of the conversations with customers still haunt me. There have been others over the piece but I can’t recall too many where we had to tell customers that they had, effectively, no cover at all barring Lofra recently.
I’m just wondering what we’re in for if it happens and they do go pop. I also wonder if AIG will be but the tip of the iceberg.
K.
Re: Long Memories
This recession should I repeat should, be ‘good’ for us.
People might be more inclined to repair their appliances.
In respect of the insurers, my feeling is- best of -they have had it too good for too long, ripping all and sundry.
This credit crunch, recession, call it what you like, has only been caused by one thing;- GREED.
What goes round comes round.
Best
ThankfullychillinRe: Long Memories
I read with interest the newsletter concerning AIG
We have done work for them down here for quite a number of years
and can say up until now have been prompt with warranty payment work
Unlike the newsletter suggests .
The extended warranty companies keep us in work(They pay our rates Lab & RRP Parts)) and it would be a shame if they go downRe: Long Memories
bigsmokepiker wrote:The extended warranty companies keep us in work(They pay our rates Lab & RRP Parts)) and it would be a shame if they go down
For “Shame” read “tragedy” as many repairers rely totally on this type of work for their very existence. Nerves are beginning to show throughout the trade as to the future without doubt.
Re: Long Memories
They don’t pay full RRP here Bruce.
Discounted labour and spares is the order of the day with some even poaching our chargeable work too boot by selling policies before the call even gets to the repairer then passing the work to the repairer at the discounted rates.
Low rates, high risks…. hmm.
And, it would appear, the guys that actually go out and do the graft get paid the least.
Or maybe my view is wrong.
K.
Re: Long Memories
Candy Covercare, early 80’s was the 1st time i saw this unfolding.
P.E.S.N. were to follow, then Powerhouse administered by Marsh, who refused to cover or honour agreements.
Difficult times. I’ve already put AIG on a Pay & Claim basis as they owe me in any case.
Alex
Re: Long Memories
Are you actually saying that you charge the customer and tell them to re-claim Alex. We’re owed money by AIG too, and they’ve always been one of the slowest payers.
MervRe: Long Memories
SWERV wrote:Are you actually saying that you charge the customer and tell them to re-claim Alex. We’re owed money by AIG too, and they’ve always been one of the slowest payers.
MervAs from today, Yes.
They still owe me for some going back to April. I’ve had unsigned cheques, disputes on MFI claims regards Smeg appliances where I’ve charged the Smeg price as they have the MFI matrix on prices (The Smeg price is sometimes cheaper). Refusal to pay where MFI have sent the job with a different name on the policy as it was registered in the builders name.
To compound the iissue they don’t tell us when there is a dispute, they rely on me chasing them. They have intimated that in future all claims will be verified only after being inputted by the repairer on their computerised system, and expect me to double key all the claim details.
As per the American credit troubles and rumours regards the stability of AIG, I’m not taking the risk.
I suspect I will upset MFI as I’ve told them by e-mail of my intent. I daresay they will tell me I’m paranoid, and nobody else is jittery.
Alex
Re: Long Memories
I put AIG/RMS on stop months ago for slow payments, non-payments and supposedly “lost in the post” claims sent to them, yet paying other claims sent in the same batch.
After telling me that several were lost in the post in rolls a cheque for one that was “lost” for a hundred odd quid (funny how it always seems to be high value ones that go astray) some ten months or so later. Staff don’t like to be told that they’ll get paid in ten months and, I can’t say I blame them.
I’m really sorry about it as I always liked working for MFI who have passed no work since, but I’m not waiting months to be paid. Nor am I putting up with the billing this one, that one and whoever else depending on the code it comes in on. It’s just too admin heavy to be bothering with TBH.
On top of which I cant be bothered to fight with anyone over rejections constantly, I have better things to be doing with my time so I just bill the customer at full retail and let the customer fight with whoever about rejections.
I’m sorry if that seems a bit brutal but I’m not here to operate a charity for others.
With hindsight and current events I think it was a blessing in disguise that I wrapped it in a while back, at least I can’t lose anymore money on AIG work.
K.
Re: Long Memories
If insurance companies collapse how will it affect the price of insurance / extended warranties? If those prices rise, won’t that cause more people to risk not taking it out? That would mean more work paid for directly by the customer.
Mike.Yes, probably. Especially if the collapse was widely reported to affect that part of the insurance market.
Whether AIG will be allowed to slip under, be bought, or be split up remains to be seen as the fat lady hasn’t sung yet. But, latest estimates put the capital needed at $75 billion to bail them out and a liability of something like $300 billion. It’s truly scary stuff and holds huge implications for many, many companies and banks, ultimately for a lot of normal folk like us.
No-one here is saying that AIG will go pop but, let’s just say that a few of us have seen this before and all we’re doing is limiting our exposure to any possible losses. Which, let’s face it, is all companies like MFI, the banks or anyone else is going to do and that’s just prudent.
K.
Re: Long Memories
Well I suppose by now everyone has heard the good news about AIG :rolls: . In a way I suppose it’s good news that the American government has bailled them out, but it doesn’t stop the fact that they are extremely slow payers. I’d be interested to find out how MFI take it, when customers start getting charged and then are having to claim it back? It sounds like a good idea to me to start doing it myself, as if thing aren’t tough enough as it is, without having to spend hours chasing outsatanding invoices.
Merv
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