How Can Fleet Insurers Make Policies Better With Risk Mitigation?
A common misconception across fleet insurance is that once a policy is bound and signed, the work is done. However, this is actually when the real work begins!
In this post, we’ll explore how implementing risk mitigation strategies is vital to ensuring safe drivers, managing and underwriting insurance policies and improving insurance premiums.
When Do I Start Risk Mitigation?
You’ve done the work – shopped policies, submitted and evaluated driver data, established coverage, the policy is underwritten and bound. The driver and vehicle are insured and ready to join the transportation workforce.
But what happens after the policy is written, and the insured has been working in the field for several months? Ideally, the moment the driver is working, data should be monitored and evaluated for ongoing risk assessment and mitigation.
According to commercial transportation risk and insurance experts, insureds and/or insurers should be monitoring and addressing ongoing driver and vehicle data.
RISK ASSESSMENT – A risk assessment is a data-driven process that evaluates a client’s or driver’s risk level. It helps insurers make informed decisions on pricing, coverage, and risk management strategies.
Vehicle maintenance and inspections
FMCSA compliance and regulations
Risky driving behavior like speeding and distracted driving
Motor Vehicle Reports (MVR) – traffic violations
From this *data an insurer or fleet owner can provide risk mitigation strategies specific to the driver.
*Real-time data can be captured and reported to insurers and fleet owners through technology platforms like ClearConnect Solutions.
RISK MITIGATION – Risk mitigation is a strategy that reduces and controls risk in regard to the driver and vehicle, promotes safety, and rewards safer driving behavior.
Risk Mitigation Tactics
- Implement risk monitoring technologies to reduce future potential losses.
- Utilize a driver compliance platform or risk monitoring tools such as a telematics ELD with vehicle dash cams like with TruckSpy.
- Offer risk management services for safer driving behavior.
- Enlist the help of driver safety training courses like Safety as a Service to mitigate driving risks, e.g. speeding tickets, traffic violations, loading violations and for ongoing regulatory compliance.
- Promote and educate drivers on safety as part of the company culture.
By providing drivers with the right safety tools and knowledge about better driving habits, insurers and fleet owners will see long-term benefits:
– Improved risk scores
– Better premiums and discounts
– Reduced claims and losses
– Increased driver retention
The results are clear. Insurers have seen remarkable decreases in annual loss ratio AND fleet owners/insureds benefit from policy savings.
That wraps up our Fleet Insurance 101 series. If you missed any of the previous posts, check them out here:
FLEET INSURANCE 101
If you’d like to LEARN MORE about ClearConnect Solutions’ fleet management and risk analysis technologies, contact us or schedule a product demo here.