The Accessor Winter 2025 Web - Flipbook - Page 23
VRR’s remit is to provide a transparent
insurance peril rating allowing
insurance to more accurately manage
their risk of insurance provision.
Vehicle manufacturers have responded positively to the launch of VRR.
For instance, it isn’t true that the new
framework will see Electric Vehicle
(EV) premiums rise: EVs are already
assimilated into existing premiums.
It’s also worth noting that VRR will
not be a handbrake turn. To ease
transition, VRR and Group Rating will
run concurrently for an 18-month dual
rating period, with existing 1 to 50
Group Rating scores remaining valid
and visible. Transition will end in Spring
2026 when VRR becomes the sole risk
assessment reference.
The era of repairability by design
VRR is expansive in its remit, but it’s
also intended to be instructive. By
that I mean it will be a key driver of
dialogue between stakeholders across
the value chain from now on – not
least between Thatcham Research
and VMs.
The new system provides a major
boost for sustainable repair strategies.
Sustainability is achieved through
ef昀椀cient, cost-effective repair, and
prompt return to the road. It’s the
reason we have so heavily weighted
repairability in VRR.
This will encourage vehicle design
which facilitates repair that is as
straightforward as possible and ensure
the availability of repair methods
and parts within parts catalogues are
carefully considered before a new
vehicle reaches the road.
It’s the type of repairability by design
VRR can instigate. Insights powered
by the assessments will for the 昀椀rst
time provide a real understanding of
the full range of perils generated by
new vehicle technologies: from safety
as the consumer experiences it, to the
complexity and cost of repair tasks
that bodyshops are just beginning to
encounter.
design stage. For instance, in this
tech-driven age of consumerism and
hyper-connectivity, many motorists are
eager for their car to become not just
a means of reaching their destination,
but also a hub for communication and
entertainment.
What VRR brings to the mix is reasoned
insight into the extent and expense
of repairing such systems should
damage occur. VMs can then balance
inclusion of components with an overall
risk pro昀椀le; rather than discovering
something just isn’t insurable after it’s
built because it is too tricky or costly to
repair. Does that expensive high-tech
headlamp create enough bene昀椀t in
safety and convenience to accept its
impact on insurance rating?
In that sense, VRR is capable of
protecting the VM from expensive
over-engineering, bodyshops from
thankless tasks, insurers from dif昀椀cult
decisions, and motorists from crippling
costs.
Automotive Risk Intelligence in
action
VMs and our insurance members
have provided very positive feedback
following the launch of VRR.
The new system is a key output,
and a shining example, of Thatcham
Research’s overall strategy to provide
products and services built on our
programme of Automotive Risk
Intelligence. The vital insights we feed
into the industry help insurers with a
greater understanding of risk so they
The damageability pillar is also
key. It assesses how vehicle design,
materials and construction techniques
affect the severity and cost of repairs.
Damageability insights will eventually
lead to more consistent levels of
damage across models, ultimately
making parts and repair more
accessible and affordable.
can underwrite more con昀椀dently and
effectively.
All new cars and vans launched in
the UK – including the rapid in昀氀ux of
models from Chinese VMs – will be
put through VRR, helping insurers
to understand evolving risk pro昀椀les,
and develop effective processes and
policies in response. One of these,
OMODA & JAECOO, introduced its
product line-up to over 90 industry
representatives at a special event we
hosted at the end of October. Our
partnership began early in the design
phase of all OMODA & JAECOO
products to ensure the mitigation of as
much insurance risk as possible. The
two organisations have been working
closely since May 2023, while a formal
partnership was established a year
later ahead of OMODA & JAECOO’s
UK launch. This has helped to give
insurance underwriters full con昀椀dence
in the UK parts, aftersales and vehicle
repair provisions of its debut models
– the OMODA 5 and OMODA E5
crossover SUVs. The partnership will
also work on the dual brand’s other
upcoming models, including the
OMODA 7, OMODA 9 and JAECOO 5
and JAECOO 7.
While the acceleration of technology
and VM market entrants meant the
time was right to launch VRR we very
much view it as an evolving system.
VRR will be improved on an ongoing
basis, with a constant 昀氀ow of new
assessments, data and insights to keep
repair businesses up to speed and able
to cope with an age of change.
JOURNAL
Thatcham Research
hosted a special event
in October when
OMODA & JAECOO
introduced its product
line-up to over 90
representatives from
insurance companies
and repairers.
With a holistic view of risk, we can
have more fruitful conversations with
VMs and encourage them to manage
or eliminate those problems at the
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