The Independent Auto Glass Association (IGA) has filed an antitrust complaint against Safelite Group with the Office of Policy and Coordination Bureau of Competition following an announcement that State Farm will be switching from LYNX Services to Safelite Solutions as its third-party administrator (TPA) July 1. 

“Safelite Solutions is not the same as Safelite Auto Glass, which handles glass repairs,” State Farm said in a letter to glass shops. “While Safelite Auto Glass will remain a participant in our NGP, customers will continue to have the option to choose their preferred glass repair shop.”

According to IGA, Safelite Group, through its subsidiaries including Safelite AutoGlass and Safelite Solutions wields substantial influence across the auto glass sector. 

“Their acquisition by foreign-owned Belron, the world’s largest vehicle glass company, further amplifies their global reach and market power,” the IGA complaint says. “Safelite Solutions’ role as a TPA over 200 insurance and fleet companies provides them with a pivotal position in directing claims and influencing repair choices.” 

IGA calls State Farm’s shift to Safelite Solutions for claims administration a “concerning” development. 

“This move further consolidates market power within Safelite’s control, potentially exacerbating existing issues related to competition and steering on a national scale,” the complaint says. 

The complaint also raises concerns with the National Council of Insurance Legislators’ (NCOIL) Motor Vehicle Glass Model Act, which says Safelite participated in creating the draft without input from the industry as a whole. 

The IGA recently released a formal rebuttal to the Vehicle Glass Model Act adopted by NCOIL last month. 

IGA says the act unfairly favors insurers, restricts consumer choice, and threatens the viability of independent glass businesses. 

More than 400 glass shops have signed up to have letters sent on their behalf by IGA to state and federal politicians regarding Safelite Solutions, according to a Facebook post by IGA. 

The letter echos the antitrust complaint. It also mentions that the IGA has been actively gathering data and documenting instances of short and late payments, steering tactics, and problematic claim authorization processes reported by glass shops that continue to experience issues with these practices attributed to Safelite and the insurance networks they manage. 

“This ongoing collection of real-world experiences further substantiates the widespread concerns about the imbalance of power and potential for unfair practices within the industry,” the letter says. 

It also mentions a recent Safelite settlement for $31 million to whistleblower Brian Williams. 

According to glassBytes, Williams filed suit on behalf of California and Illinois, alleging the company violated both states’ insurance fraud prevention laws by using aftermarket moulding while billing insurers for OEM parts. 

The letter says the ramifications of unchecked market dominance by Safelite are far-reaching and detrimental and include: 

• • Erosion of fair competition
  • Restricted consumer choice
  • Inherent conflicts of interest
  • Potential for inflated costs
  • Compromised quality and safety
  • Undue influence on market standard

It asks that state insurance commissioners and legislators can take action by: 

• • Scrutinizing and acting upon the findings of the whistleblower settlements
  • Rejecting the NCOIL Motor Vehicle Glass Model Act in its current form
  • Implementing rigorous oversight of third-party administrators
  • Enforcing stringent anti-steering regulations
  • Establishing clear guidelines and mechanisms to prevent and mitigate conflicts of interest 
  • Ensuring fair and reasonable reimbursement practices
  • Supporting initiatives that enhance transparency in claims 

The letter also asks state officials and legislators to regulate entities like Safelite, particularly their TPAs, in a manner similar to how Pharmacy Benefit Managers (PBMs) are regulated. 

“A competitive, transparent, and fair auto glass repair market is essential for protecting consumers, supporting numerous independent businesses, and fostering a healthy state economy,” the letter says. “We believe that proactive and comprehensive measures are now more critical than ever to ensure a level playing field, prevent the detrimental effects of monopolistic tendencies, and safeguard the rights and interests of all stakeholders in the auto glass industry.”

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