1. Providing Assurance Needed by Carriers
ARA Airbag Protocol
Providing Assurance Needed by Carriers
Inspection & Training System for OEM Non Deployed Airbags
Implementing the ARA Protocol;
The International Standard for Replacement Airbag Modules
New Options for P & C Insurers
Presented at URG & Pinnacle Training Conference , Englewood, CO March

2. ARA Airbag Protocol Goal of Protocol:
Meet insurer expectations for standards
Reduce total losses which hurt the sales of non airbag parts
Boost members’ airbag sales to insurance paid collision repairs
9/17/2018

3. ARA Airbag Protocol
ARA Airbag Protocol offers the insurance & collision industry assurances that:
The part has been handled by trained and certified technicians
New qualification created; “Certified Airbag Technician” (CAT)
Standard work is practiced
Part matching application by MMY and VIN
Detailed examination of each part; multi point inspection made
Comprehensive records kept on each part inspected
Certificate of Inspection for each part
9/17/2018

4. Replacement Airbag Market: Challenges & Solutions
Special circumstances in replacement airbag market
No aftermarket airbag option available
Monopolistic conditions exist as a result
Carriers captive to new dealer airbag prices
Book value of vehicles decline w/ age, but prices of new OEM airbags do not decline in sync w/ the value of the vehicle (as a rule)
The older a vehicle is, the more likely new dealer bought bags will total the vehicle
Carriers insuring older vehicles (> 5 yrs old) most exposed
9/17/2018

5. Replacement Airbag Market: Challenges & Solutions
Competition is required in airbag market to moderate prices (as with any other)
Only alternative to new bags is non deployed OEM airbags from vehicle recyclers
Carriers demanding compliance with written Standards from all vendors, incl. aftermarket parts suppliers, safety glass suppliers, wheels etc
Airbags are the latest entry on the list of safety related auto parts for which adoption of written Standards precede mainstream use by P&C Carriers
Replacement safety glass well illustrates. Windshield glass both a safety item and key part of the airbag system. National standards adopted in replacement glass industry paved the way for non dealer installations and use of aftermarket glass alternative parts.
9/17/2018

6. Replacement Airbag Market: Challenges & Solutions
Rate of totals is growing, with direct impact on future growth rate of shops and recyclers alike:
Total out rate 1999: 8~9 % of estimates
Total out rate 2007: 19~20% of estimates Data source: CCC/insurers
What are the main characteristics of a total loss vehicle in order of importance? *
Vehicle driveability
Odometer reading
Airbag deployment
* Source: CCC , Crash Course 2007
9/17/2018

7. Cost/Benefits Costs No cost to carrier to participate in program
Pricing varies with model; always at an attractive discount to dealer new pricing
Benefits
Reduce Materials Costs
Save totals
Risk Management
No auto part is “risk free”
ARA Protocol ensures best practices always used
Ensures equivalent performance to OEM new
ARAPro bags are 100% OEM parts
Rigorous data retention on each part inspected
Liability exposure managed through:
“Do No Harm”; record every step taken
Database on each part
Inspection records
Each member carries product liability insurance
Informed consent, always; policy holder explicitly authorizes carrier and shop to acquire and install unit
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8. Airbag Resources.com Protocol is implemented through AR.com site;
Training software
Testing
Inspection
Reporting
Restricted to ARA members
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9. Why develop Airbag Resources?
Custom software turns the Airbag Protocol into a daily tool used in operations
Consistent approach throughout the recycling industry
Real time data collection and reporting
Facilitates e-learning for techs
Airbag training
Training, testing, and certificates completed on line
Safety
Haz mat training, testing and certificates completed on line
High quality work
Part traceability
Automatically screens parts for govt Recall campaigns
Comprehensive database on all parts inspected
Meets insurer expectations for Standards, training, inspection & data retention
9/17/2018

10. Using Airbag Resources; Branding complying units, “ARAPro”
Inspected airbag inventory to be marked “ARAPro” in the comments & notes fields in Pinnacle and Hollander
“ARAPro” flows from inventory management systems to estimating systems operated by Hollander and Pinnacle, but, carriers have the option to disable non approved components in their user menus
ARAPro soon to be available on Car Part .com
9/17/2018

11. Airbag Resources/Training of Techs
Technicians must be trained and certified before extracting, handling, inspecting or shipping airbags
Tech take a test through Airbag Resources which grades their performance. Once acceptable level is reached employee is a Certified Airbag Technician (CAT)
Non certified personnel not allowed to work with airbags
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12. Airbag Resources/Training of Techs; log on
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13. Airbag Resources/Training of Techs
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14. Airbag Resources/Training of Techs
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15. Airbag Resources/Training of Techs
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16. Airbag Resources/Training of Techs; Success on test leads to award of Certified Airbag Technician (CAT) qualification for technician
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17. Airbag Resources/Training of Techs; Haz Mat Regs
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18. Airbag Resources/Training of Techs; Haz Mat personalized certificate
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19. Inspection Software Airbag Evaluation Management System :
Ensures standard approach to every airbag inspected
Guides techs on to look for
Requires confirmation at every point that parts meets requirements else cannot proceed
Data gathered and stored in real time
AEMS generates a file on every airbag inspected
Reports may be generated at any time
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20. Inspection Program log on; CAT # required to log on
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21. Inspection Program; Data Entry
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22. Inspection Program; Data Entry
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23. Inspection Program; Checklist
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24. Inspection Program; Real Time Recall Check
Tech clicks this button for real time Recall Check against federal (NHTSA) part recall database
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25. Certificate of Inspection; when all steps completed successfully
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26. Collaboration with Carriers
Our Message to insurance carriers…
Reduce repair cost, while managing liability
Liability managed using written Standards, Training, Database, Inspection Reports,Certified Technicians
Create choice, improve competition
Offer options to consumers where none existed before
ARAPro bags suit some cases, (not all), e.g.:
Borderline total out repairs
New OEM parts not available from dealer
Customer always approves (informed consent)
Body shop also approves and consents
9/17/2018