ABSTRACT
The supply and value chain for motor insurance provides an interesting case example of two very distinct sub-regimes within one power regime. The motor insurance supply chain is divided into a downstream sub-regime of power in which, in recent times, the customer has started to receive a more substantial share of value than had been the case in the past. In the upstream sub-regime, however, value is largely appropriated by the manufacturers providing proprietary parts for the car repair industry. Recently, some of the major insurance companies have attempted to control the flow of value between themselves and their car repairers. Despite these attempts, it is unlikely that any insurance company will be able to turn its improved leverage of its car repairers into a critical asset either upstream or downstream. This is because of the continued dominance of the proprietary parts manufacturers over the ultimate costs of repairs in the upstream sub-regime.
