Windscreen repairers in Canterbury are raising concerns about market practices that they say favour large, dominant firms at the expense of independent operators. Tony McLelland, a local installer, estimates that insurance work comprises around 10% of his business—roughly five jobs per week—although he believes it should be closer to five jobs per day.

The dispute centers on the market dominance of Novus and Smith & Smith, two major glass repair companies frequently preferred by insurers. McLelland and other independent repairers argue that customers are often unaware they have the right to choose any windscreen installer for repairs, yet insurance providers steer them toward these established companies. This practice, they say, limits competition and reduces opportunities for independents.

At the core of the issue is the relationship between the insurance giants IAG and Suncorp, and a related invoicing company, Auto Glass Claims (AGC). IAG owns the insurance brands State, NZI, and AMI, while Suncorp controls Vero and holds a majority stake in AA Insurance. Both companies dominate the household insurance market and contract AGC to manage auto glass claims invoicing.

Auto Glass Claims, which operates under NZ Auto-glazing Limited as Novus CMS, coordinates claims and invoices on behalf of insurers. Independent repairers contend that AGC’s connection to Novus creates potential conflicts of interest. Chris Kearns, representing New Zealand Auto Glass, highlighted that AGC shares directors with Novus Windscreens and that family members of Novus’ leadership work at AGC. According to Kearns, this arrangement allows AGC to access competitors’ pricing and invoice details, which can be used to challenge invoices and pressure repairers to reduce their charges.

“Our invoices go to what we feel is Novus, and they come back and say this job is too expensive, we need you to drop your price by $100,” said Kearns. “It isn’t fair that our competition is seeing everything we do and can try and beat us down on price.” He called for a reconsideration of the appropriateness of individuals connected to major competitors handling commercially sensitive information.

Auto Glass Claims director John Armstrong declined to comment specifically on these concerns but stated that the company provides independent claims management services intended to ensure prompt and consistent processes benefiting all parties. He added that ultimate decisions on repair costs rest with the insurance companies.

Previously, the Commerce Commission reviewed similar complaints but decided not to pursue action, concluding the existing arrangements were unlikely to breach competition laws. A spokesperson said the commission has received a new complaint regarding these matters and is currently assessing it.

Representatives from insurers Vero and IAG confirmed that customers retain the right to select their preferred repairer. Vero stressed that it implements a standard validation process to ensure repair costs by non-approved contractors reflect market rates, aiming to keep expenses reasonable. IAG stated it works with a broad range of repairers and that Auto Glass Claims facilitates claims management and claim consistency, noting that less than 11% of windscreen claims went through AGC in the past year, with most handled by their approved suppliers.

The ongoing calls for regulatory scrutiny underline concerns about market fairness, transparency, and potential anti-competitive behaviour within New Zealand’s auto glass repair industry.