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Covéa cuts ELV partner network to 16

From 1 January 2026, Covéa will cut its ELV partner network from 73 to 16 firms to handle around 55,000 irreparable vehicles a year, pushing higher dismantling (70%) to boost reused parts (PIEC) and lower repair costs. ATFs must sell via Carrosity, while a 25% dependence cap and tighter rules accelerate consolidation.

Hands holding a used catalytic converter over a car engine, illustrating parts reuse in vehicle repairs p — Image credit: Shutterstock

Covéa, France’s largest motor insurer, is overhauling how it manages end-of-life vehicles (ELVs) in its claims flow. From 1 January 2026, just 16 approved partners will handle around 55,000 vehicles a year declared irreparable for GMF, Maaf and MMA policyholders, down from 73 partners previously.

Covéa is reducing its network of partner ELV centers by a factor of four

For authorised treatment facilities (ATFs), the move is significant. Covéa has confirmed it is ending 57 partnership agreements with approved dismantlers and retaining 16 “carefully selected” operators. Of those 16, 14 were already working with the mutual insurer.

The group says the streamlined network better aligns with its “sustainable repair” objectives. According to David Thévenot, head of the automotive networks division at Covéa, as reported by L’Argus de l’assurance, the selected partners collectively operate a network of around 50 to 60 processing centres across metropolitan France (excluding Corsica and the overseas territories), supported by 250 to 300 relay points.

Bigger volumes per partner, but with a cap on dependence

With fewer partners, each operator will be allocated a larger share of Covéa’s ELV volumes. However, Covéa is setting a strict threshold: economic dependence on Covéa must not exceed 25% of a partner’s total activity.

Higher dismantling requirement to drive more PIEC

Covéa also intends to lift the output of parts from the circular economy (PIEC). Under the new specifications, approved centres will be required to dismantle 70% of the vehicles they receive, compared with “a maximum of only 50% currently”, according to Thévenot.

“Covéa wants to improve the production of reused parts to curb the inflation of the cost of repairs and, in particular, new spare parts,” said Célia Keller, the group’s press officer.

Mandatory online sales route via Carrosity

Under the new model, recyclers will also be required to sell dismantled parts via Carrosity, the platform jointly owned by Covéa and the Faubourg group. The aim is to simplify access for the insurer’s network of 4,300 approved body shops, which carry out close to 600,000 repairs a year on insured vehicles.

Consolidation pressure increases for France’s ATF market

Covéa’s approach follows a similar move by La Macif, which reduced its deconstruction partner network from 41 to 24 establishments. Together, these strategies are accelerating market concentration.

Patrick Poincelet, president of Mobilians’ recycling division, said only “a maximum of 150 companies” now still have an agreement with an insurer, compared with more than 300 five years ago.

The squeeze is expected to continue as requirements tighten under France’s AGEC law and the European framework on vehicle dismantling. Florence Bailleul, managing director of Indra Automobile Recycling, estimates that out of roughly 1,700 approved centres in France, only 800 to 900 sites have invested sufficiently to make it through this initial selection stage.

Source www.j2rauto.com