Good for business, customers and the planet

In the UK Allianz offers the use of ‘green parts’ – certified body panels, mirrors, bumpers and other parts salvaged from vehicles – in its fleet repair policies. These state that green parts will be automatically fitted for non-safety-critical repairs when available. These parts are sourced from the same manufacturer, come with the original guarantee and are of the same age or newer than the parts they replace. Allianz ensures that these parts meet certified conformity standards.  

Customers who choose to have their vehicles repaired within Allianz’s Approved Repairer Network (ARN) benefit from reduced excesses and a warranty on repairs for as long as they own the vehicle. This reduces repair times and costs and minimizes waste and carbon emissions.

Furthermore, Allianz UK has been integrating such sustainable practices into repairs by implementing a digital platform for green parts. In 2021, in collaboration with SYNETIQ, Allianz launched the 'mygreenparts' platform. This digital solution streamlines the sourcing of 200,000 quality, recycled, non-safety-critical vehicle components – such as doors, body panels and headlamps – for repairers. 

These initiatives offer cost savings and efficiency benefits to customers and repairers alike, while aligning with environmental sustainability goals. Few insurers in Europe offer a comparable combination of digital sourcing, guaranteed quality and environmental transparency at scale.

Allianz is also a proud supporter of AutoRaise , a UK charity committed to bridging the skills gap in the vehicle repair industry by providing quality apprenticeships to the next generation. Michael Golding, Network Manager – Motor at Allianz UK and Trustee of AutoRaise, highlights: “The motor accident repair industry is currently experiencing a notable shortage of skilled professionals, caused by an aging workforce, swift technological developments in vehicle design, and a scarcity of new talent entering the field. To tackle this issue, the industry needs to invest in specialized training programs, encourage apprenticeships, and work alongside educational institutions to highlight the attractive career prospects in vehicle repair. This is why Allianz is collaborating with AutoRaise, recognizing the crucial role of maintaining repair solutions with our Network repairers both now and in the future, to ensure long-term sustainability.”

Since April 2024, Allianz Insurance in Germany, among other countries, has placed suitable used parts from total write-offs on the local market, increasing their availability via platforms such as ClaimParts  and recycling exchanges such as green.casion. "After serious traffic accidents, vehicles are a total economic loss. However, in many cases, many parts are undamaged and can be recycled," says Frank Sommerfeld, CEO of Allianz Versicherungs-AG in Germany. "Why shouldn't undamaged doors and fenders be installed in another vehicle involved in an accident?"

Currently, over 1,400 Allianz partner workshops offer repairs using certified used parts ranging from doors and tailgates to mirrors and headlights. Critical components, such as steering systems and rims, are excluded for safety reasons.

The Allianz Center for Technology (AZT) has collaborated with Oakdene Hollins/Metsims to analyze the CO₂ emissions and financial implications of repairing versus replacing parts. This includes the options of repair, replacement with used parts, and replacement with new parts. Dr. Christian Sahr, the AZT's managing director, says the figures are impressive: “The principle of ‘repair before replace’ is environmentally friendly and cheaper in most cases. However, when replacement is unavoidable, used spare parts should be prioritized to improve environmental performance while maintaining energy-efficient mobility."[Fig.1]  For example, repairing a defective LED headlight or a cracked windshield instead of replacing it with a new part reduces greenhouse gas emissions by around 99%."

He also points out that savings can be significant. Repairing a side panel on a Ford Fiesta, for example, saves around $1,700. Further advantages can be seen when replacing with a used part. "Installing a used driver's door from a VW Golf VII would save 89 percent, or 81.6 kg, of CO₂."[Fig.2]

According to Sommerfeld, 420,000 tons* of CO₂ could be saved in Germany under ideal conditions when extrapolated to all repairs. This roughly corresponds to the annual absorption capacity of the Bavarian Forest. "Reusing these parts for other repairs turns a problem into a solution."

This is why Allianz launched this pioneering initiative in Germany that proves the circular economy works for used automotive spare parts. Customers are on board, too: According to an Allianz survey, 89% are open to repairs with certified used parts. Specifically, every second eligible customer opts for sustainable repair when offered this option.

The AZT expects the used parts trade to be up and running in Germany in around three years, with the potential to reduce repair costs by up to 10% in addition to reducing CO₂ emissions.. However, market figures are still too limited to make a reliable forecast.

Allianz Partners, in collaboration with business partners, offers end customers insurance and extended warranty solutions for a wide range of electronic devices – including mobile phones, laptops, and tablets – as well as household appliances such as refrigerators, vacuum cleaners, dishwasher, and microwaves.

This is driven by consumer preference: 77% of EU citizens would rather repair their electronic devices than discard them. The European Union estimates that promoting repair over replacement could reduce greenhouse gas emissions by 18.5 million tons and cut waste by 3 million tons over the next 15 years.

The Mobile Device & Digital Risk line of business at Allianz Partners has introduced a comprehensive repair service, offering a swift five-day turnaround through a network of over 100 certified repair centers across Europe. This service saves customers time and money while supporting environmental responsibility.

Allianz is also exploring tariffs that formally integrate the use of used parts, particularly for newer vehicle models as availability improves. Collaborations with auto recyclers, workshops and regulators will be key to scaling the system. 

Learnings from mature markets are already informing Allianz’s global approach. In Allianz Insurance Singapore, for example, local teams are working to adapt circular repair models to tropical climates and regulatory frameworks, such as the lifetime warranty on replacement parts in repairs.  This gives customers greater confidence in choosing repairs over replacements, knowing the parts used are of high quality and built to last. 

Allianz Insurance Singapore has also launched initiatives like ' Recycle My Tyres,'  aiming to transform automotive waste into reusable materials, reflecting the company's dedication to circular economy principles. These efforts demonstrate how insights and practices from various markets are adapted and implemented to meet local environmental challenges and regulatory frameworks.

“As an insurer, we see first-hand the impact mobility has on our environment,” said Ong Bi Ying, Chief Operating Officer of Allianz Insurance Singapore. “That’s why we’re taking this step, not just for our customers, but also for the wider community of drivers who care about making more sustainable choices.”

By embedding sustainability into the everyday act of repair, Allianz shows that climate action doesn't always require grand gestures. Sometimes, the most significant difference comes from what you don't throw away.