Kemper has issued its O&A letter to participating glass shops. Its offer is starting to look familiar in many respects to those which have been issued from other insurance companies in terms of wanting to be revenue neutral and to have fair and reasonable prices. The following is a copy of the letter sent to Rate D and E shops.
Monday, February 14, 2005
Dear Shop Owner/Manager:
Kemper Auto and Home Group has completed a study to understand all the issues surrounding the rebalancing of NAGS benchmark pricing that has affected the entire automobile glass industry and will take effect February 28, 2005. Our desire is to be fair and reasonable with our pricing with all shops, thus we have re-calculated NAGS glass pricing and labor required for a neutral invoice affect. This rebalancing effort by the glass industry has in no way revised what we feel was fair, reasonable and competitive in your area prior to the rebalancing issue. Our goal in this rebalancing of a glass invoice was to adjust to the glass industry changes while being as invoice neutral as possible.
We continue to appreciate the glass service you are providing to our Kemper Auto and Home Group customers. To facilitate timely payments of invoices and avoid misunderstandings, we are informing you of the Kemper Auto and Home Group pricing standards. These prices are not the lowest available to us; however, we believe they represent fair and reasonable prices for the market.
The pricing structure is as follows effective February 28, 2005:
Windshield: 113.00% Over NAGS List
The prices listed above supersede any prior pricing notification by Kemper Auto and Home Group.
The SGC Network is administering our glass program.
No reproduction, in print, electronic or any form without the expressed written permission of
Key Communications Inc. 540-720-5584.