Just Sayin’ Blog – Network Participation Agreement – “Special Update”

  Cartoon courtesy of TomFishburne.com


“Can’t tell the players without a scorecard”… an old school expression but those words seem particularly relevant today, as one looks at recent events surrounding the subject of auto glass networks.

In my recent blog titled “Network Participation Agreement” from August 6, 2012, I discussed the ADDENDUM announced by Safelite® on July 20, 2012 regarding its www.SGCNetwork.com Network Participation Agreement.  It stated in the last sentence of Section 1.10 of the ADDENDUM, “Further, Participant shall not offer, directly or indirectly, to any insurance agent or its personnel anything of value in consideration for the referral of work paid for from the proceeds of an automobile insurance policy.” 

In that post, I also asked “do you think that Safelite® is also a participant, having signed the Network Participation Agreement and having to follow all of the sections of the agreement? If yes, then Safelite® has to follow the same rules as everyone else. That seems fair right?”

I guess that question entered the spotlight sooner than I could have imagined with the publication of the glassBYTEs.com™ article from August 23, 2012 titled “Safelite Funds Allstate Windshield Repair Marketing Material” written by Casey Neeley.

In that story, an Allstate consultant is quoted as saying, “Safelite approached us about creating marketing material for our agents to distribute and the first run of such materials was funded entirely by Safelite and provided to our agents”.

Now we get to the scorecard part because I have to wonder “which” Safelite it is that is funding promotional materials. Would that be Safelite® Solutions LLC, the self-proclaimed “third party administrator” of glass claims, or Safelite Auto Glass®, the self-proclaimed “largest vehicle glass repair and replacement organization in the U.S.” After all, both those entities are involved – but as noted in the prior blog, it is just not very clear about the role that Safelite® Auto Glass plays in the equation, either with the insurance carrier or its agents. If you follow the link at the end of this sentence, Safelite® refers to all of its organizations as “A Family of Companies” (*referenced from http://scheduling.safelite.com/companies.jsp).  

While this distinction, or lack thereof, is not at all apparent from any public information I find on this subject, one thing becomes crystal clear – the auto glass repair and replacement (AGRR) industry could certainly use a whole lot more transparency. In fact, one could make the case that much of the recent legislation efforts have been focused on creating such transparency in auto glass claims transactions, with particular attention, rightly or not, on Safelite® and its “Family of Companies”.

From the view of this blog, transparency only serves to benefit consumers in making informed claim decisions, making their policy dollars work to their fullest, and identifying safe auto glass replacement services.

I guess I have to rephrase my original blog question to now ask, “Do you think that Safelite® [Auto Glass] is also a participant, having signed the Network Participation Agreement and having to follow all of the sections of the agreement?”

One can only hope that in the interest of transparency and consumer informedness, the players involved make it quite clear about the roles and participation as pertain to Safelite® Auto Glass, an entity portrayed as separate and distinct from Safelite® Solutions LLC. And there is one organization that could answer that question today.

For the rest of us, the best course of action might be to continue to focus on the customer and provide exceptional value with outstanding transparency.

In the meantime, not a bad idea to keep the scorecard close by to recognize the players on the other team, and act accordingly.

Just sayin’……











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