Whilst new rules on actions such as whiplash compensation and claims handling are changing the mix of work flowing through workshops, parts availability remains more and more under pressure too, and today, insurers find themselves increasingly scrutinising every stage of a claim to protect margins and reputation.

As a result, regulators have been active this year, with one of the most direct changes for repairers being the uprating of the Whiplash Injury Amendment Regulations 2025, which introduced increased tariff awards by roughly 15% – a move which directly changes settlement dynamics across low-value injury claims and feeds through to how quickly cases close and whether repair-on-hire or early settlement is offered.

But the main reasons for recent changes in regulatory activity is that wider market forces identified by the Financial Conduct Authority (FCA) and industry analysts clearly show that motor claims costs have been rising sharply for some years, and FCA analysis point to material increases in parts, labour and vehicle values, with claims costs up significantly since 2019.

For repairers, this is a pattern which pushes more claims into repair complexity, lengthens repair cycles and increases the risk of write-offs.

And for the overall supply chain, it means the impact can have significant effects.  

Parts pricing and lead times are more volatile, which is increasing job cycle times

Global and domestic pressures on parts manufacturing, shipping and logistics have translated into longer wait times for certain body panels, electronics and trim components.

According to a his has resulted in fleet operators reporting growing downtime because repairs can’t be completed without the right parts, and it also means that repairers are experiencing heavier planning burdens, spending more of their time chasing suppliers, and ultimately facing greater exposure to storage and cashflow pressures while vehicles sit awaiting parts.

Repair cost inflation is pushing more vehicles to the borderline of write-off, which is disrupting supplier relationships

Recent data from Auto Claims Assist confirm that average repair costs in the UK are rising year-on-year, with industry tracking putting average repair costs in the region of £5,000+ in 2025 to date.

But not only does this rising figure affect both insurer decisions on repair versus replacement and changes the negotiation dynamic between repairers and parts suppliers, it also places sustained pressure on the wider UK automotive supply chain too.

For example, driving up demand for cost-efficient components, intensifying competition for recycled or green parts and forcing distributors and logistics providers to re-evaluate pricing and stock strategies to keep pace with insurer expectations and workshop needs.

There’s more regulatory scrutiny around claims handling, which means greater documentation and provenance requirements for parts and labour

Recent case law and court guidance on credit hire and associated costs have heightened the need for defensible processes, and as a result, repairers are more frequently being asked for fuller audit trails, photographic evidence, parts traceability and clear invoicing – all of which creates administrative overheads and can slow returns if the paperwork isn’t thorough enough.

Consumer-facing reforms and FCA attention on fair outcomes are shortening tolerance for delays and poor communication, which pushes pressure back into the supply chain

With regulators and the public demanding clearer, faster settlements, and the FCA itself calling out higher claims costs and urging improvements in claims handling, insurers are now being incentivised to push for speed and transparency.

In turn, this then flows down to repairers who must combine rapid turnarounds with robust compliance, and who are finding that even minor delays in parts sourcing or quality checks can trigger escalations, affect service-level agreements and strain relationships with both insurers and customers.

How repairers are feeling it on the ground

2025 data from the Motor Ombudsman reinforces that the sector is under significant strain, and that many workshops report consumers deferring routine maintenance because of cost-of-living pressures.

In fact, nearly 9/10 garages list rising operational costs as a top challenge, and with around 43,000 businesses in the motor vehicle repair sector alone, this outlines how any supply-chain shock can trigger a ripple effect across thousands of small businesses.

However, in an effort to try and mitigate this impact, repairers can:

• Tighten parts sourcing and record-keeping; as it’s better to assume insurers and courts will want evidence of correct parts sourcing and fitment
• Build relationships with tiered suppliers; as diversifying sources can avoid a single shortage halting workflow
• Embrace transparent customer comms; as regulatory emphasis on outcomes means customers and insurers expect plain-language updates and reasonable timescales
• And use data to negotiate; as presenting repair-cycle metrics to fleet and insurer customers can be critical when arguing for realistic SLAs

Where S&G Response fits in

Here at S&G, we recognise that repairers shouldn’t be left to fend for themselves when regulation and market forces change the rules of the game, and that’s why we actively work to support our repair network, not simply by sending business their way, but by sharing the intelligence and administrative support that prevents bottlenecks.

To us, we believe it’s important to invest in triage and parts-capture tools that reduce unnecessary movements, and we do so by running regular supplier briefings, so repairers understand the latest court decisions and tariff changes, and operating a structured supplier network that rewards compliance, traceability and sustainable practise.

This means that all of our workshops are supported with up-to-date guidance, predictable demand and timely payment, and their entire claims supply chain performs better – for customers, for insurers and for repairers themselves.

But of course, regulation will keep moving forward, and repair chains will continue to feel the effects. As such, by combining proactive compliance, investment in data and genuine engagement with repair partners, the sector can switch disruption into resilience, and here at S&G, we aim to be the partner that helps repairers navigate the change, every step of the way.

Reach out today to find out more about how we can help.