Ageas UK: Circular Economy Innovation of the Year

Ageas UK won edie’s ‘Circular Economy Innovation of the Year award’ for 2024 for its pioneering initiative, Green Parts, which transforms motor repairs through a repair-over-replace ethos and extensive use of reclaimed parts.

Ageas UK: Circular Economy Innovation of the Year

At a Glance:
Who: Insurance provider Ageas UK 
What: Green Parts initiative, integrating reclaimed parts into motor repairs
Where: Implemented across the UK
When: Launched in 2019, ongoing
Why: To minimise environmental impact, enhance customer service and promote sustainability in the motor repair industry. 

The Challenge: 

Ageas UK faced the dual challenge of reducing environmental footprints in motor repairs while maintaining high-quality, cost-effective solutions for customers. Traditional practices lean heavily on replacing damaged parts with new ones, contributing to waste and resource depletion. The UK insurance industry replaced more than 15 million car parts in 2021, with front bumper parts being the most commonly replaced item, according to figures from Thatcham Research. 

The Solution: 

In response, Ageas UK introduced the Green Parts initiative, prioritising repair over replacement and integrating reclaimed parts into the repair process. Green car parts are original manufactured car parts that are taken from one vehicle and used to fix another. This innovative approach aims to maximise the value of existing resources, reduce waste and minimise the environmental impact of motor repairs. 

How it Works: 

Ageas UK collaborated closely with partners in the motor repair network to expand the utilisation of reclaimed parts. In 2020, it merged its salvage operations with its green parts supply, creating a closed-loop system within its repair ecosystem, feeding its own supply of ‘donor vehicles’ back into its repair network. 

Through a dedicated portal, repairers can easily access salvaged parts from Ageas’ green parts suppliers. The supplier network consistently collects data on the types of parts frequently required by repairers, ensuring adequate stock levels of these components. Additionally, all packaging materials are reused for transporting parts and equipment. 

Ageas UK is presently extending this strategy to its household claims, acknowledging the added complexity arising from customer preferences for new products. Nevertheless, the company is actively collaborating with its claims supply chain partners to advance sustainable solutions throughout the value chain that align with customer needs. 

The Results: 

Since the inception of the Green Parts initiative, more than 30,000 green parts have been used, with reclaimed parts used in nearly one in three qualifying vehicle repairs in 2022. Beyond the substantial environmental benefits, the initiative has streamlined processes, reduced costs for customers and enhanced overall efficiency in the motor repair network. 

The Judges Said:  

“Ageas UK’s Green Parts initiative demonstrates the potential of circular solutions in the automotive repair sector. By focusing on repair over replacement and promoting the uptake of reclaimed parts, it showcases the win-win scenario of circular economy principles.” 

© Faversham House Ltd 2024 edie news articles may be copied or forwarded for individual use only. No other reproduction or distribution is permitted without prior written consent.

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