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Law360, London (April 8, 2020, 2:37 PM BST) -- New research has found that car repair claims have fallen dramatically since the COVID-19 outbreak hit, with almost half of bodyshops suspending trading.
A survey published Tuesday by the National Body Repair Association found that 72.2% of bodyshops said claims had dropped more than 70% since the global health crisis — which has now killed more than 80,000 people worldwide — took hold.
"For many of our members this is a fight for survival and they need immediate and significant support to get through it," said Chris Weeks, executive director of the NBRA.
Weeks added that the association will use the survey results to help support bodyshops as claims continue to drop off.
The survey, which was compiled by the NBRA as well as a car industry research group called TrendTracker and ARC360, an online forum for the car insurance industry, found that 49.1% of bodyshops have suspended trading.
A further 24.3% expect they will suspend trading in the future, the survey found.
The research, which generated more than 220 responses from over 500 individual sites, found that 82.3% of bodyshops had suffered disruptions to their supply chains as a result of the coronavirus pandemic.
Some 64.7% of bodyshops said they have had to put workers on furlough as countries around the world go into lockdown. Fewer than 1 in 10 of the businesses that responded said they are likely to bring on any new employees in the near future.
Repair centers have asked for support measures to be put in place during the crisis, including quicker payment of invoices and higher labor fees during the crisis.
But bodyshops were still hopeful about the future, with 77.9% saying they were either very optimistic or cautiously optimistic that they could withstand the financial fallout of a two-month lockdown.
"While these are extremely testing times, it's hugely positive to note the percentage of bodyshops that remain optimistic," said Mark Hadaway, co-founder of ARC360.
"It underlines the incredible resilience within this sector and suggests that it might not be too long until repairers are back doing what they do best — supporting people during a time of need and putting them back on the road safely," he added.
Insurers in all sectors have been hit hard by the coronavirus crisis.
Lobby group Which? has found that 31 in 75 of Britain's major insurers have suspended the sale of travel cover to new customers. Leading insurers such as Aviva, LV= and Direct Line are among those that have pulled products.
U.K. lawmakers have urged insurers to clarify their positions on COVID-19 claims and regulators are firms to treat consumers fairly and flexibly during the crisis.
--Additional reporting by Najiyya Budaly. Editing by Rebecca Flanagan.
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