SAMBRA calls for wider insurer action as fuel pressure continues to strain repair sector

The South African Motor Body Repairers’ Association (SAMBRA) is urging broader and more consistent action from insurers as ongoing fuel price volatility continues to place sustained pressure on the motor body repair (MBR) sector, with only partial and uneven implementation of relief measures across the industry.

This follows earlier interventions by a number of insurers to cushion the impact of sharp diesel increases on repairers’ operating costs. However, SAMBRA says a significant portion of the market has yet to adopt similar measures, leaving many workshops exposed to ongoing cost escalation.

Recent fuel adjustments have compounded existing pressures in the sector. For many repairers, fuel is a critical input cost, affecting vehicle collection and delivery, parts logistics, mobile assessments, and customer service operations.

While repair pricing frameworks within the MBR industry are largely governed through systems such as Audatex, which are periodically adjusted to reflect input cost movements, SAMBRA notes that these updates do not always keep pace with sharp fuel fluctuations. This continues to strain workshop-level sustainability.

SAMBRA National Director, Juan Hanekom, says the partial rollout of fuel-related concessions highlights both progress and inconsistency within the claims environment.

“We acknowledge that some insurers have taken meaningful steps to recognise the impact of fuel increases, and that is encouraging,” says Hanekom. “However, this response has not been uniform across the industry, and that inconsistency is becoming a challenge.”
He adds that while mechanisms such as per-job contributions are practical and already workable within insurer systems, limited adoption undermines sector-wide stability.

“Where these measures are in place, they are helping to ease pressure,” says Hanekom. “But where they are absent, repairers are left absorbing costs they cannot sustain. This creates an uneven operating environment.”

The MBR sector continues to operate under tight margins, with rising electricity tariffs, wage pressures, parts inflation, and supply chain constraints adding to strain. Fuel costs remain particularly challenging due to their immediate operational impact.

Hanekom says the cumulative effect is increasingly evident in workshop capacity, turnaround times, and investment confidence.

“The concern is not only short-term absorption of costs, but long-term sustainability in a market where operating expenses are rising faster than recovery,” he explains.

He emphasises that the issue extends beyond individual businesses, with a stable repair sector critical to insurers, OEMs, and consumers.

“The MBR sector is a key link in ensuring vehicles are repaired safely and to standard. Financial pressure on repairers ultimately affects the entire claims ecosystem,” says Hanekom.

SAMBRA, a proud association of the Retail Motor Industry Organisation, is calling for more consistent adoption of fuel-related relief mechanisms across the insurance sector to ensure fair operating conditions for all repairers.

Hanekom adds that the current environment presents an opportunity to move from fragmented responses toward structured, long-term alignment on input cost volatility.

“There is evidence that these mechanisms work. The next step is consistency. Without it, we risk a two-tier system where some repairers are supported and others are not,” he says.

SAMBRA is continuing engagement with stakeholders across the claims value chain to encourage broader participation in collaborative, sustainable solutions.