Airbag Resources.comAirbag Resources.com

Inspection & Training System for OEM Non Deployed Airbags Implementing the ARA Protocol;

The International Standard for Replacement Airbag Modules

New Options for P & C Insurers

Lowering the Cost Of Crash Repairs; New Airbag Options for P&C Carriers

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Replacement Airbag Market: Challenges Replacement Airbag Market: Challenges & Solutions& Solutions Replacement airbag market:

– Special circumstances in replacement airbag market• No aftermarket airbag option available• Monopolistic conditions exist as a result

– Carriers captive to new dealer airbag prices– Book value of vehicles decline w/ age, but prices of new

OEM airbags do not decline in sync w/ the value of the vehicle (as a rule)

– The older a vehicle is, the more likely new dealer bought bags will total the vehicle

– Carriers insuring older vehicles (> 5 yrs old) most exposed

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Replacement Airbag Market: Challenges Replacement Airbag Market: Challenges & Solutions& Solutions Competition is required in airbag market to moderate prices (as

with any other) Only alternative to new bags is non deployed OEM airbags from

vehicle recyclers Carriers demanding compliance with written Standards from all

vendors, incl. aftermarket parts suppliers, safety glass suppliers, wheels etc– Airbags are the latest entry on the list of safety related auto

parts for which adoption of written Standards precede mainstream use by P&C Carriers

– Replacement safety glass well illustrates. Windshield glass both a safety item and key part of the airbag system. National standards adopted in replacement glass industry paved the way for non dealer installations and use of aftermarket glass alternative parts.

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Replacement Airbag Market: Challenges Replacement Airbag Market: Challenges & Solutions contd..& Solutions contd.. Recycling industry (through its national assoc the ARA)) has

developed the ARA Air bag Protocol to meet carrier needs for Standards in the replacement airbag market

ARA Protocol is now the international Standard for the replacement airbag industry, governing– Training for technicians– Technician testing and certification– Standard work/consistent approach to operations– Certificates of Inspection on EACH product– Data retention; trace ability– Best practices at all times

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Cost/BenefitsCost/Benefits Costs

– No cost to carrier to participate in program– Pricing varies with model; always at an attractive discount to dealer new pricing

Benefits– Reduce Materials Costs– Save totals– Risk Management

• No auto part is “risk free”• ARA Protocol ensures best practices always used• Ensures equivalent performance to OEM new

– ARAPro bags are 100% OEM parts• Rigorous data retention on each part inspected• Liability exposure managed through:

– “Do No Harm”; record every step taken– Database on each part– Inspection records– Each member carries product liability insurance

• Informed consent, always; policy holder explicitly authorizes carrier and shop to acquire and install unit

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Protocol in practice: Airbag Protocol in practice: Airbag Resources.comResources.com The Protocol is implemented through Airbag

Resources.com Airbag Resources deploys specialized software

(following the Protocol rules) enabling recyclers:• extract, • handle, • inspect, & check for recalls• store • ship

OEM non deployed airbags in a controlled systematic manner with information continuously stored in a comprehensive database

Airbag modules complying with the Protocol branded ARAPro

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Airbag Resources GoalsAirbag Resources Goals Deliver a credible alternative to P&C

carriers seeking solutions to totals caused in part by high airbag prices

Collaborate with industry stakeholders ensuring broad buy in

Deploy standard both nationally and internationally

Boost competition and choice for carriers purchasing replacement airbag modules

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Why develop Airbag Resources?Why develop Airbag Resources?•Custom software turns the Airbag Protocol into a daily tool used in operations

•Consistent approach throughout the recycling industry

•Real time data collection and reporting

•Facilitates e-learning for techs

•Airbag training

•Training, testing, and certificates completed on line

•Safety

•Haz mat training, testing and certificates completed on line

•High quality work

•Part traceability

•Automatically screens parts for govt Recall campaigns

•Comprehensive database on all parts inspected

•Meets insurer expectations for Standards, training, inspection & data retention

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Using Airbag Resources; Branding complying Using Airbag Resources; Branding complying units, “units, “ARAProARAPro””

•Airbag Resources is limited to members of the ARA

•Inspected airbag inventory to be marked “ARAPro” in the comments & notes fields in Pinnacle and Hollander

•“ARAPro” flows from inventory management systems to estimating systems operated by Hollander and Pinnacle, but, carriers have the option to disable non approved components in their user menus

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Screen Shots; Home Page

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Airbag Resources/Training of Airbag Resources/Training of TechsTechs•Technicians must be trained and certified before extracting, handling, inspecting or shipping airbags

•Tech take a test through Airbag Resources which grades their performance. Once acceptable level is reached employee is a Certified Airbag Technician (CAT)

•Non certified personnel not allowed to work with airbags

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Airbag Resources/Training of Techs; log on Airbag Resources/Training of Techs; log on

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Airbag Resources/Training of TechsAirbag Resources/Training of Techs

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Airbag Resources/Training of TechsAirbag Resources/Training of Techs

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Airbag Resources/Training of TechsAirbag Resources/Training of Techs

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Airbag Resources/Training of Techs; Success on test leads to Airbag Resources/Training of Techs; Success on test leads to

award of Certified Airbag Technician (CAT) qualificationaward of Certified Airbag Technician (CAT) qualification for for techniciantechnician

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Airbag Resources/Training of Techs; Haz Mat RegsAirbag Resources/Training of Techs; Haz Mat Regs

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Airbag Resources/Training of Techs; Haz Mat Airbag Resources/Training of Techs; Haz Mat personalized certificatepersonalized certificate

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Inspection SoftwareInspection Software

•Airbag Evaluation Management System :

•Ensures standard approach to every airbag inspected

•Guides techs on to look for

•Requires confirmation at every point that parts meets requirements else cannot proceed

•Data gathered and stored in real time

•AEMS generates a file on every airbag inspected

•Reports may be generated at any time

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Inspection Program log on; CAT # required to Inspection Program log on; CAT # required to log on log on

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Inspection Program; Data EntryInspection Program; Data Entry

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Inspection Program; Data EntryInspection Program; Data Entry

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Inspection Program; ChecklistInspection Program; Checklist

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Inspection Program; Real Time Recall Check

Tech clicks this button for real time Recall Check against federal (NHTSA)

part recall database

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Certificate of Inspection; when all steps Certificate of Inspection; when all steps completed successfullycompleted successfully

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Collaboration with CarriersCollaboration with Carriers Our Message to insurance carriers…

– Reduce repair cost, while managing liability• Liability managed using written Standards, Training,

Database, Inspection Reports,Certified Technicians– Create choice, improve competition– Offer options to consumers where none

existed before– ARAPro bags suit some cases, (not all), e.g.:

• Borderline total out repairs• New OEM parts not available from dealer

– Customer always approves (informed consent)