Our contractors weighed in. Here’s what they said and why carriers should pay attention.
Carriers participate in managed repair programs (MRPs) to reduce cycle times, improve estimate accuracy, and enhance operational efficiency – but perhaps one of the biggest benefits of participating in an MRP like Contractor Connection is the access to our nationwide network of skilled property restoration contractors. The more than 5,000 general and specialty contractors across the U.S. who participate in our program are among the best in the business, as evidenced by feedback from the 500,000 insureds they serve each year.
It’s no secret that insurance restoration contractors are facing a wide range of strains these days. Cost pressures, workforce challenges, and technology expectations are all placing demands on their businesses, in an industry where margins were already tight. Our recently released Managed Repair Market Report was designed to help carriers better understand current contractor economics and identify practical ways to support a healthy, resilient managed repair ecosystem.
We weren’t sure what to expect when we surveyed a cross-section of the insurance restoration specialists in our network about their business operations and managed repair experiences, but we were gratified to see nearly 500 contractors across the U.S. respond. Collectively, they represent a mature, veteran-heavy base of owners, managers, and executives with a median of 24 years in business. They gave us a clear window into what’s keeping them up at night, where they see the managed repair industry heading, and their expectations for future contractor-carrier collaboration – insights we’ve endeavored to share in our new three-part report.
Why does this all matter for carriers? Because we’re all in this together. Contractors are managing significant cost and workforce pressures, yet many are choosing to protect strategic business relationships while continuing to provide the same level of exceptional service to policyholders. The better that all participants in the insurance restoration ecosystem understand this balance and the competing demands that underlie it, the better we can collectively anticipate market needs and deliver stronger outcomes for our clients.
So here’s the bottom line: times are tough, and the cost of doing business is the defining concern. Rising material costs, economic uncertainty, and labor shortages topped contractors’ list of worries. Material costs stood out because concern about them was nearly identical in every region we looked at. This is a structural pressure on the whole industry rather than a local problem or a short-term blip.
What stood out most was how contractors are responding.
In an industry with so many moving parts, it’s easy to rely on assumptions about what insurance restoration specialists are experiencing on the ground. This report replaces those assumptions with real data, straight from the professionals doing the work every day. This kind of insight helps carriers and program partners make more informed decisions about the managed repair industry and serve insureds to the best of our collective ability.
This is just a taste of the findings you’ll find in Section One of the Managed Repair Market report, which focuses on current business operations. You can read the full section here – and while you’re there, you can register here to receive notifications as additional installments go live.
Managed repair works best when everyone in the chain is set up to succeed: the policyholder who needs their home restored, the adjuster who needs a defensible estimate, and the contractor who needs a viable business. Our contractors have told us clearly what they’re facing. As carriers shape their future claims and vendor strategies, these market dynamics should be an important consideration.
