Crash repairer AMA Group says inflation impacts have been reflected in an interim pricing agreement reached with its largest customer Suncorp for services provided to the insurer by Capital Smart.

The agreement, which relates to the period from October 1 to June 30 next year, follows concerns raised across the vehicle crash repair industry over inflationary impacts fuelled by supply chain shortages and rising labour costs.

“The interim pricing package reflects cost inflation being experienced by motor repairers and provides incentives for AMA Group to expand capacity within Capital Smart to accept more drivable repairs from Suncorp,” the company said.

“The interim pricing arrangements continue to reflect a volume-based discount to current market pricing.”

AMA Group has a 90% stake in Capital Smart, which it purchased from Suncorp in 2019, with the insurer retaining a 10% interest.

The business specialises in rapid repairs to drivable vehicles that have sustained low to medium collision damage and has operations across Australia and in New Zealand.

AMA Group also said last week that it expects to meet its current earnings guidance for this financial year.