Crash repairer AMA Group says insurers have been approached and are in active discussions about repricing contracts as cost pressures continue to rise.

Parts prices are still heading higher and paint cost increases have been flagged as supply chain pressures continue, the company told an investor day briefing last week.

Consumables, which are largely imported and include repair process items such as sandpaper and masking tape, have been affected by a four-fold increase in international shipping costs.

“Pricing must keep pace with market changes to ensure a fair return on work completed,” AMA says in slides released on the stock exchange.

AMA has also been battling skills shortages after covid and border closures through to February cut the number of international hires in the past two years. Historically, the group has supported up to 100 new visa applications annually.

A focus on targeted attraction strategies, such as advertising in industry publications and at conferences, and the use of immigration agents has seen skilled migration hires recommence, the company said.

AMA says that, outside covid, total kilometres travelled by passenger vehicles in Australia have been increasing over time, with the trend expected to correlate to collision frequency.

In other trends, decisions to claim are being impacted by the selection of higher excesses in exchange for lower premiums, while the uptake of advanced driver assistance systems is likely to reduce frequency while increasing claims size.

The bulk of AMA’s work is from insurers, but it sees opportunities to expand revenues from car rental companies, fleet managers and government fleets and self-insureds.

The group continues to evaluate unprofitable sites for improvements and will make “further consolidation and exit decisions subject to the outcomes of commercial negotiations with insurance partners”.