In 1963, Attorney General Robert Kennedy and his staff had completed a lengthy investigation into antitrust violations by the insurance industry.

In 1963, Attorney General Robert Kennedy and his staff had completed a lengthy investigation into antitrust violations by the insurance industry. The U.S. Justice Department found that throughout the ’50s and early '60s, the entire collision repair industry had been manipulated by several insurance associations. The prices were "fixed," and the plans (forerunners of DRPs) were set up to steer repairs toward favored repair shops. Meetings were held to discuss how the insurance associations could further control the collision repair marketplace. Discounts were demanded. Labor rates were set and controlled. And body shops that attempted to work outside the plan were boycotted and victimized. Intimidation replaced the free enterprise system as the consumer’s right to choose was manipulated in such a fashion that nobody understood whose rights were being undermined.


Only half a century later, we are dealing with the exact same scenario. The industry has permitted itself to be subjected to the exact same corporate greed.

Insurance companies, through their vast resources, have attempted to protect themselves from antitrust penalties by separating into many smaller companies operating under the umbrella of their corporate structures.

The insurance industry claims their exemption from the McCarran-Ferguson Act gives them an authority to control prices beyond the business of insurance. But recent consolidation efforts between these giants of insurance should be attracting the watchful eye of our Justice Department. Still, most politicians are careful not to interfere with insurance issues, since political action committee (PAC) fund donations are utilized to finance campaigns. Unfortunately for consumers, the insurance industry has developed tremendous lobbying power that’s difficult to compete with. Over a decade ago, three trillion dollars a year was spent by insurance companies trying to control the marketplace and government. That number is likely even larger today.

Some say the industry today is worse than it was in the 50's and 60's. Not only are they controlling body shops, but they are forcing those same shops to help them cheat people out of what they are rightfully owed in many cases. It makes you wonder what our world would be like today if only we could have better protected the Kennedy administration.