OPERATIONALIZE COMMERCIAL

LINES INSURANCE

High Level Strategic Vision and Business Execution Strategies

THREE YEARS AGO,
FUEL WAS A TRUCKING
MAJOR EXPENSE.

Currently, insurance is their 3rd

largest expense behind drivers’
salaries and equipment costs.
WHY IS INSURANCE SO DIFFICULT IN
THE TRANSPORTATION REALM?

•  Distracted Driving Trend

•  Demand to deliver faster / Fatigue / HOS
•  Natural Disasters
•  Inclement Weather
•  Driver strikes
•  Regulatory (ELD)
•  Macroeconomics (flow of goods)
•  Political Climate

CHALLENGES OF THE TRANSPORTATION
INSURANCE INDUSTRY

•  Explosion of Growth – Amazon Effect

•  Driver shortage
•  Less than favorable loss history / inability to get
competitive rate
•  Industry of unsupervised workers aka field
workers
•  Owner and Operator control issues
•  Upward trend of verdicts and targeted employer
negligence and hiring, safety practices

 WHAT ABOUT PUBLIC PERCEPTION OF THE
COMMERCIAL TRANSPORTATION INDUSTRY?
AMERICAN ROUGE HEROES
CURRENT PUBLIC PERCEPTION
THE BATTLE – REPTILE THEORY

•  Misleading the jury by scaring the

primitive part of the juror’s brain
•  Conditioned to prefer safety and
survival
•  We all have had those white knuckle
moments
•  Punishment is the only way!!
•  They actually wrote a book on it!

REPTILE:
THE 2009
MANUAL OF
THE
PLAINTIFF’S
REVOLUTION
TELEMATICS CAN TELL THE STORY OF
THE COMMERCIAL DRIVER.
RETURN OF INVESTMENT - IMPACT ON CLAIMS

•  Success stories like the video

you just saw continued to
happen
•  LAE costs decline
•  Reserving and Indemnity paid
happens earlier (don’t confuse
that with increase severity)
•  Rapid response improvement
leading to better collection of
evidence earlier
•  Insurance industry fights back
on fraud
RETURN OF INVESTMENT - IMPACT ON UNDERWRITING

•  Renewal recommendations
•  Driver exclusions
•  Coverage/Deductible
changes (PD Deductible as
a result of Parking lot
trend)
•  Non-Renewal or
cancellation
•  Pricing
•  Verification of submission
data
BUSINESS EXECUTION STRATEGIES

VULNERABILITY OF
TELEMATICS AS A
STAND ALONE •  The “lone” or “remote” worker
SAFETY PROGRAM and realistic understanding of
changed behavior
! Useable conclusions on driver exposure
to accurately calculate the driver risk
!  Realistic but practical time frame to
change behaviors
!  Set targets for both safety performance
and compliance


BUSINESS EXECUTION STRATEGIES

VULNERABILITY OF
TELEMATICS AS A
STAND ALONE •  Onboarding
SAFETY PROGRAM !  Can the account support a telematics
program
!  Do not overlook mechanical qualifications
regarding installation

•  Encourage the positive side of

telematics
!  Recognize good driving

•  Be transparent regarding targets
and expectations
 BUSINESS EXECUTION STRATEGIES

THE DATA
DILEMMA
•  Data gathering strategies
!  What information do you care about?
!  What information will lead to a valuable
assessment?
!  How often do you gather this data?

•  Scoring can lead to valuable data of
questionable data
!  Observations that make up the safety score
specific to the operations you insure
 BUSINESS EXECUTION STRATEGIES

THE DATA
DILEMMA
•  Having useable and valuable data
specific to the types of operations
insured
!  If you aren’t writing WC, how do you score
seatbelt violations?

•  Bad Data – potholes, etc.

•  Missed Data

BUSINESS EXECUTION STRATEGIES

PRODUCTIVE
COACHING •  When do you coach?
!  Coaching can be tied to scoring, but is
scoring capturing the entire risk?
!  Immediate action vs. evaluation of
historical data
!  How many speeding observations are too
many?

•  Establishing a value to coaching;
how do you know it’s working?
!  Safety score, decrease in observations


BUSINESS EXECUTION STRATEGIES

PRODUCTIVE
COACHING
•  Game day films are highly valuable
!  Recognize good driving

•  What is discussed during a
coaching session and how can you
make that more impactful?

STRATEGIC EXECUTION
PRODUCTIVE COACHING
STRATEGIC COACHING SESSION

•  Review of weekly report indicates a

spike in score (mostly related to
unfasted seatbelt)
•  Review of claim activity showed a
large amount of windshield claims by
the driver in the video
•  Review of driver observations: 41%
texting while driving
•  Indication that he is running off the
road while driving
•  This review clearly showed the driver
is easily distracted and lacks focus on
the task at hand
•  A review could have generated a
factual and productive conversation
QUESTIONS?