The hidden risk in the race to reduce glass replacement costs
For nearly four decades, Gary Stieger has worked in the South African glass industry, building a business model around quality control, compliance, and national service delivery.
Through My Glass, he has helped establish a network of more than 150 independently owned and managed mobile service teams across the country. But while the glass replacement industry continues to evolve, so too do the risks facing insurers, fleet operators, brokers, body corporates, and ultimately policyholders.
One of the most pressing concerns emerging in the market is the growing use of what Gary describes as “glass broking”, a subcontracting model that may reduce short-term costs but could expose insurers and clients to significant long-term operational, legal, safety, and reputational risks.
Cost reduction versus risk management - In a highly competitive environment, reducing costs has become an understandable priority. Every supplier in the insurance value chain is under pressure to improve efficiencies and reduce Average Cost of Claims (ACOC). However, Gary argues that when cost-cutting begins to remove critical layers of quality control and oversight, the consequences can become serious.
“A windscreen is not simply another commodity,” he explains. “Automotive and building glass are, in many applications, safety-critical components.”
The concern is not necessarily entrepreneurship itself. In fact, Gary strongly supports the role of SMMEs and independent operators in the industry. The challenge lies in ensuring that the operating model used still maintains the necessary compliance, training, systems, governance, and accountability standards required in a modern insurance environment.
Understanding the different operating models - Gary distinguishes between three common models operating within the industry:
- The glass broker model, where subcontractors are appointed to perform installations on behalf of a broker, often using supplied glass and working for a limited fitting fee.
- The franchise model, which operates under strict processes, systems, branding, and approved product structures.
- The licence model, which still maintains strong governance and compliance frameworks but allows operators more entrepreneurial flexibility in approved product selection and operations.
While each model has a place in the market, the concern is that the broker model can sometimes prioritise price above process and control.
Why compliance matters - Modern vehicles are increasingly sophisticated, and windscreen replacement today involves far more than simply removing and fitting glass. Materials, adhesives, calibration requirements, structural integrity, and installation methodologies all play a role in ensuring occupant safety.
Gary points out several areas where insufficient oversight can create major risks:
- The use of inferior or poorly fitting glass products.
- Incorrect polyurethane or bonding materials that may compromise vehicle integrity.
- Lack of sufficient public liability or workmanship insurance by subcontractors.
- Failure to comply with SABS, SANS, and AAAMSA standards.
- Inadequate training and accreditation processes.
- Weak fraud prevention controls.
- Poor handling of mouldings, clips, and replacement components.
- Limited control over POPIA compliance and client information management.
- Unbranded or poorly identified technicians creating additional security concerns for clients.
According to Gary, each missing control layer incrementally increases the insurer’s exposure to future claims, reputational damage, and liability risk.
“The concern is that if the industry becomes overly driven by unsustainable pricing models alone, critical quality and safety controls may gradually erode.”
