Paint suppliers ICI Autocolor and PPG have signed a supply partnership deal with Allianz Cornhill, claimed to raise bodyshop profits and reduce Cornhill's costs by charging lower prices and improving efficiency.

The RMI, which in the past has criticised such schemes, has fully endorsed the deal. Bob Hood, RMI Bodyshop Services director, said: “This is unlike all other insurer deals because Allianz Cornhill actually bother to talk to their repairer network.”

Some repairers, however, have described the move as “midsummer paint madness”. Dave Shepherd, manager of Deejay Accident Repair Centre, said: “I think I understand where Allianz Cornhill are coming from in that they are seeking to end the annual spiralling increases in paint prices, but I don't think this will meet their objectives.

“I think it will have the opposite effect, as other paint companies will try to match the returns to bodyshops, which will force prices up in 2001. If ICI and others want to bring about a reduction in the cost of paint they should simply cease the endless madness of freebies and simply slash the cost of the product.”