Repair Smarter, Not Harder: How Managed Networks Are Reshaping Property Insurance Claims

By Astrid Malval-Beharry

You evacuated days ago, watching the news with dread as the storm swept through your neighborhood. The storm has passed, and you’re relieved to be home, but as you pull into the driveway, your heart sinks. The roof is damaged, shingles are scattered, and water has seeped through, soaking the walls. On top of that, a large branch from your beloved oak tree has fallen on your garage and crushed the hood of your car in the driveway. You’re overwhelmed by the daunting tasks ahead: Filing a claim, finding a contractor, waiting for quotes, negotiating repairs, and hoping the work is done right. You feel caught between your insurance carrier, contractors, and the pressures of functioning in a damaged home, all while feeling like you must fight to protect your biggest investment—your home.

Now, let’s explore what happens next. You contact your insurance carrier to file a claim. Your claim is immediately split into two: One for Homeowners (HO) and one for Auto Physical Damage (APD). These claims will be handled differently.

For the auto claim, you’re presented with options. Depending on the extent of the damage and your preference, you can:

1.     Use your smartphone and the carrier’s app for a guided self-inspection

2.     Bring the car to a body shop of your choice,

3.     Select a body shop from the carrier’s Direct Repair Network (DRP), or

4.     Arrange for the carrier to inspect the vehicle.

If you choose the DRP option, the process is streamlined. The carrier and body shop handle everything, from estimates to repairs, providing you with progress updates and as much information as you need. You don’t have to manage the details, and the carrier will likely warranty the repair for the life of the vehicle.

In contrast, the Homeowners claim is more complicated. Your insurer is committed to making you whole financially (less a deductible), but you may end up managing more of the cleanup and repair process than you’d like. This can be stressful, especially when dealing with contractors and coordinating repairs. You’re likely to feel caught in the middle, burdened by the emotional and logistical strain.

But what if there were a better way? Imagine if your Homeowners claim mirrored the auto DRP process, with your insurer essentially “taking care of it” from First Notice of Loss to your home being fully repaired. This is the promise of Managed Repair Networks (MRNs) for homeowners.  Though more complex than auto claims, it’s possible and carries benefits for homeowners, insurers, contractors, and even suppliers.

The Current Reality vs. The Potential Future

Today’s claims process for homeowners often feels adversarial and inefficient. The logistical nightmare of managing quotes, negotiating repairs, and ensuring quality exacerbates the trauma of property damage. Insurers, despite their best intentions, struggle to balance cost management while delivering a positive customer experience. The fragmented contractor market adds another layer of complexity, making it difficult to ensure consistent quality.

By contrast, a world with widespread MRN adoption transforms the experience and the value proposition. Claims become opportunities to build trust and loyalty by “getting it done” and not just “getting it paid.” Homeowners benefit from faster repairs, fewer headaches, and a genuine sense of partnership. Insurers streamline operations, reduced claims-handling costs, and gain valuable data on estimates, repairs, and materials sourcing. This data can be used to enhance processes, ensure compliance, and negotiate better terms with supply chain partners—especially crucial during catastrophes when resources are stretched thin. Contractors receive reliable, high-quality jobs, making a meaningful difference in the lives of homeowners. As an added bonus, carriers can pass savings on by minimizing premium increases.

Yet, despite this potential, MRN adoption in property insurance remains low, averaging less than 10%, according to dozens of primary research interviews I’ve conducted. Meanwhile, auto insurers have successfully integrated Direct Repair Programs (DRPs), with adoption rates averaging 80%.  This discrepancy begs the question: What lessons can the property insurance sector learn from auto insurers’ success?

The Promise and Pitfalls of Managed Repair Networks

MRNs offer a transformative experience for policyholders, connecting them with vetted contractors and reducing the stress of managing repairs. But the real transformation lies in shifting home insurance from “we will reimburse you” to “we will restore you to where you were.” This promise drives significantly higher customer satisfaction, as seen in auto insurance. Moreover, it reflects a materially different value proposition to the insured. MRNs represent strategic value, not tactical improvements.

Auto insurers have long embraced Direct Repair Programs (DRPs), with customers voluntarily opting in, resulting in substantial benefits. According to the J.D. Power 2020 U.S. Auto Claims Satisfaction Study, repair satisfaction scores are higher among policyholders who use DRPs, demonstrating the power of a “we will take care of it” approach.  Additionally, data shows that up to 82% of customers with repairable vehicles choose DRP shops for their convenience, speed, and quality assurance. Auto body shops also benefit from a steady stream of high-quality jobs, allowing them to grow their businesses sustainably. 

However, there are hurdles to be addressed before we see widespread adoption of MRNs for Homeowners insurance. Policyholders may feel MRNs limit their choice of contractors, and there are concerns that cost-saving measures could compromise repair quality. The property repair market’s fragmented nature—including materials, repair methods and contractors— complicates uniform implementation, unlike the auto industry, which benefits from greater standardization of parts, repair processes and national collision repair chains. 

Increasing MRN Adoption: Lessons from Auto Insurance 

The auto insurance industry has successfully made DRPs an essential part of claims management. Property insurance can learn from this by: 

Building and Earning Trust:

• Clear Communication and Transparency: Insurers must be transparent about how contractors are selected, their qualifications, and the repair process, ensuring policyholders feel informed and empowered.
• Tech as a Trust Builder from Estimate to Resolution: 

o   Standardized Estimatics Platforms: In auto insurance, repair estimates are generated using one of three industry-standard estimatics platforms, ensuring consistent, reliable, and comparable assessments, regardless of whether the estimate is created by a carrier employee, an independent adjuster, or a body shop. This technology builds trust by delivering transparency and accuracy. The property insurance sector already leverages one of two major industry estimatics platforms to provide dependable damage assessments, although no two homes are alike unlike the auto industry where a VIN number[1] helps drive more standardization.

o   AI-Driven Intelligent Estimation: Inspired by advances in auto repair, property insurers can use AI-driven tools to optimize repair estimates. These advanced tools include image recognition, natural language processing (NLP), and machine learning algorithms that work together to enhance the estimation process. Image recognition technology can automatically detect and analyze damage from photos, identifying affected areas with high precision. NLP can process and interpret written reports, extracting key details and identifying patterns across large datasets. Machine learning models then synthesize this information to suggest repair solutions that are both cost-effective and of high quality, significantly reducing the risk of human error and ensuring a consistent, data-driven approach to damage assessment. By doing so, insurers enhance estimation accuracy and instill greater confidence in policyholders about the fairness and thoroughness of the process.

o   Real-Time Progress Tracking: Just as auto claimants benefit from app- and text-driven updates, property policyholders should have access to similar tools. Real-time tracking and proactive communication ensure that homeowners stay informed at every stage of the repair process, enhancing trust and satisfaction. For instance, notifications about when a contractor will arrive, the expected timeline for repairs, and updates on material sourcing can significantly reduce homeowner anxiety. These types of solutions already exist in property but are not as widely adopted as in auto.

o   Digital Documentation and Evidence: Advanced platforms enable the digital capture and storage of all documentation, from initial damage assessments to completed repairs. This comprehensive digital trail provides transparency for policyholders and creates a robust record for resolving disputes or validating the quality of work performed.

Set a High Bar for Quality, and Stand Behind It

• Raise the Bar on Quality: Like auto insurers offering warranties (even lifetime) on DRP repairs, property insurers can establish high quality standards and back them with warranties. This builds trust and ensures consistent, reliable outcomes.
• Create Incentives for Participation: Policyholders can be incentivized with benefits like faster claims processing, discounts, or warranty-backed repairs. Contractors can be motivated with exclusive agreements and performance-based bonuses. This is critical especially when MRNs are not offered as an option, but as a requirement, which we are starting to see gain traction in many states.

Invest in Change Management

• Educate Stakeholders: Misunderstanding or lack of awareness often leads to resistance. Training sessions for adjusters, contractors, and policyholders can highlight the benefits of MRNs, aligning goals and reducing friction.

Address Legal and Coverage Concerns

• Policyholders frequently worry about the scope of coverage in managed repair scenarios, often questioning whether all repairs will be fully covered. Insurers should clearly outline coverage limits and offer repair warranties upfront. As more carriers incorporate managed repair options into their policies, transparent guidelines will be critical to foster confidence in these programs and encourage adoption.

A Call to Action for the Insurance Industry

Now, let’s imagine a future where filing a property claim is as easy as snapping a photo and submitting it through an app, triggering a seamless repair process with vetted contractors and real-time updates. Instead of adding stress, your insurer partners with you, handling every detail to restore your home swiftly and expertly. This isn’t just wishful thinking—it’s the potential of Managed Repair Networks.

By embracing MRNs, insurers aren’t just enhancing the repair process; they’re redefining the very nature of home insurance. They relieve homeowners from the burden of managing estimates, evaluating repair quality, and coordinating logistics. What a relief for homeowners to know that they’re not just being financially compensated but are being truly cared for. This is a strategic step change for the value proposition of Homeowners Insurance. When was the last time that happened?

To the MRN community: Now is the time to innovate, build more transparent, tech-enabled processes, and champion quality and reliability. Insurers, too, can embrace a new value proposition and role—not just as payers but as partners in protecting and restoring what matters most. Together, we can create an insurance future where trust, care, and reliability are the foundation.

Astrid Malval-Beharry is the Founder and President of StratMaven, a strategic advisory firm specializing in the intersection of Insurance and Technology. With over 20 years of experience in growth strategy and M&A, she partners with insurance providers, solution vendors, and private equity firms to drive innovation and create lasting value.  

[1]A VIN number, or Vehicle Identification Number, is a unique 17-character code that serves as a car's fingerprint. It includes both numbers and letters and provides information about the vehicle's manufacturer, model, year of production, and specific features. Each VIN is created and assigned by the car manufacturer when the vehicle is built.