MVR Screening - How Is It Used in Fleet Insurance and Underwriting?
MVR screening refers to the process of reviewing an individual’s driving history as recorded by the state’s Department of Motor Vehicles (DMV) or equivalent agency. Insurance companies often use MVR screenings to assess driver risk. The MVR report typically includes information about accidents, traffic violations, license suspensions, and other relevant details related to a person’s driving history.
Auto-adjudication - What is It and What are the Benefits?
Auto-adjudication is a term commonly used in the insurance industry referring to the automated decision-making or approval process for insurance claims, policy issuance, or other transactions. Instead of relying entirely on manual review and decision-making by human agents, auto-adjudication uses computer algorithms and predefined rules to make decisions automatically, equitably, and efficiently.
Historically, MVRs are pulled and reviewed at least annually by most insurers who offer coverage to commercial drivers. However, pulling MVRs manually can be time-consuming, costly, and inaccurate. Further, historic data teaches us that when a driver has a major traffic violation, they are most likely to be involved in a motor vehicle crash in the 180 days following the violation. Depending upon periodic MVR screenings simply isn’t enough to proactively mitigate that risk.
ClearConnect Solutions also combines its auto-adjudication technology with the continuous monitoring of MVRs, providing a simple pass, fail, or needs review result, in real-time, based on set criteria. Leveraging the power of ClearConnect’s auto-adjudication technology to streamlline the process and accuracy of running MVRs against set criteria -combined with round-the-clock monitoring of driver records – offers insurers a uniquely automated solution to stay ahead of risk!
As with any other automated process, there are benefits and challenges associated with its use and application. Let’s explore the challenges first.
CHALLENGES with Automating MVR Screenings and Adjudication
Data Accuracy – Incorrect entries, missing information, or delays in updating information can lead to inaccuracies in the report
Data Privacy – Accessing MVR data has to comply with privacy regulations to ensure sensitive information is handled properly
State Regulation Variability – How information is reported can vary from one state to another, as can the use of terminology and codes across various jurisdictions
Timeliness – Any delays in updating records can lead to an incomplete and inaccurate report
Potential for Bias – Individuals with past violations or certain demographic groups may be penalized disproportionately
Legal and Compliance – Staying current with the ever-changing landscape of regulations and criteria for making underwriting decisions is an ongoing challenge
Historic Integration – Implementing an effective MVR screening process traditionally presents a technical challenge requiring proper integration with existing systems and workflows at an insurance company
Offsetting these potentially out-dated issues are the many benefits that MVR auto-adjudication through ClearConnect Solutions offers for insurance companies and fleet owners.
ADVANTAGES to Automating MVR Screenings and Adjudication
New API Integration – API integration capabilities solve unique challenges that insurance companies and fleet managers traditionally face with MVR auto-adjudication, allowing for a seamless integration into your company’s workflows
Efficiency – Auto-adjudication streamlines the MVR process by running hundreds of MVRs simultaneously and cross-referencing each MVR to different insurance providers to determine what programs each driver is qualified for
Cost Savings – Automation with MVR screenings reduces the need for manual labor and administrative resources. ClearConnect Solutions has the ability to run multiple MVRs at one time and connect via API – creating efficiencies and reducing cost
Consistency – Automated processes consistently follow predefined rules which helps to ensure screenings and monitoring are treated uniformly
Reduced Human Error – Manual data entry and human interpretation of records can lead to mistakes in the adjudication process
Scalability – Automated systems are capable of handling a large volume of transactions without a proportional increase in human resources, and now you can pull up to 250 MVRs at once for multiple fleets
Valuable Focus – Frees up resources for human/manual focus on more complex cases requiring subjective judgment, negotiation, or specialized expertise, thereby helping insureds in the underwriting, binding, and claims processes
Risk Mitigation – Cases that fall outside of predefined parameters can be flagged and investigated, helping to identify potential risks or fraudulent activity
Enhanced Compliance – MVR auto-adjudication systems can be programmed to consistently adhere to both internal policies and regulatory requirements, ensuring organizational compliance within legal and ethical boundaries
Efficient Service – MVR auto-adjudication enables quicker responses to customer inquiries, claims, or policy requests
Continuous Alerts – MVR auto-adjudication can be programmed for round-the-clock monitoring and notification of violations, further mitigating driver risk
Data Analysis and Reporting – Automated systems can efficiently generate reports and analyze data to provide valuable insights into trends, patterns, and areas for improvement in the risk mitigation and adjudication processes
ClearConnect Solutions’ MVR auto-adjudication tool offers numerous benefits, whether you’re an insurer or managing a fleet. While it remains essential for both insurance providers and fleet managers to strike a balance between automated and manual-based processes, the advantages of MVR auto-adjudication with ClearConnect Solutions outweigh the challenges.
ClearConnect Solutions makes MVR screening seamless with your normal workflow by connecting via API to your current client management system. Combining automation with keen personal oversight will create a powerful screening and adjudication process that provides the best outcomes for your transportation clients, drivers, and fleet owners. Level up on efficiency, accuracy, and customer satisfaction with MVR auto-adjudication through ClearConnect Solutions.
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