The world has changed. Due to the continuous fallout from COVID-19, businesses continue making reductions in headcount and numerous small organizations will likely go under. These actions both impact commercial lines auto carriers. Already operating on thin profit margins for auto lines, commercial carriers may find it increasingly difficult to maintain profitable combined ratios.
What does this mean for insurance brokers?
That it would likely become increasingly difficult to obtain desirable rates and avoid premium increases at renewal without the right tools in place. Brokers will need to come to carriers with in-depth data on each customer’s driver base to help underwriters uniquely assess and price risk for specific customers.
Consider the immense amount of antiquated technology companies are utilizing. Brokers especially can help their customers replace ineffective, time-consuming risk management practices through continuous driver monitoring.
How this helps insurance brokers
By being able to do this, brokers are able to offer unmatched customer experience focused on retaining business all while helping customers reduce crashes, costs and claims. Manually pulling motor vehicle records (MVRs), after all, has been a status-quo best practice for identifying and managing driver risk.
Manually pulling MVRs isn’t enough
This practice however has been proven to be inadequate time and time again. Why is that? MVRs only offer a simple snapshot in time, leaving companies in the dark for the remaining 364 days of the year, exposed to immense risk.
Are you one of the many looking for MVR services for insurance brokers? Did you know that a driver with a major violation is more likely to be involved in a crash within the next 180 days? Relying on annual MVR pulls to identify drivers will be far too late in actively managing and mitigating risk.
Want to learn more about the affordable, available solutions such as continuous driver monitoring that make it easier to maintain healthy combined ratios? Download our white paper.