Monday, April 22, 2024
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INSURER INVESTS IN RECYCLING WRITE-OFFS

Specialist motorcycle broker MCE Insurance has invested a further £100,000 to expand its Green Parts sideline, which dismantles and recycles written-off bikes.

This has been spent on more warehouse space for the salvage business and increased staffing to strip bikes. MCE Green Parts plans to treble revenue through 2022, after parts sales grew to more than £1.5m in its first year of trading.

“We are now successfully recycling about 30% of our non-fault claims write-offs, and are targeting 50%,” explains MCE’s Simon French.“We only had capacity to strip up to around 10 bikes a month, whereas now we should be able to manage at least 30. That should mean we have enough component inventory for a monthly turnover in excess of £200,000.”

According to French, this spin-off business was established initially to reduce waste and save money in claims events. But MCE Green Parts has become a significant and profitable revenue centre in its own right.

“Like all insurers, we have to make decisions about what is most cost-effective when managing a claim, which sometimes means writing off a bike that really could be repaired and back on the road with relative ease,” he adds. “But that just didn’t sit comfortably with us, hence the development of our Green Parts division.”

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