Unpredictability can change business
The world has changed due to COVID-19. With an ever-evolving landscape that seems to pivot in the blink of an eye, it’s more important than ever for insurers to strategize in anticipation of an economic downturn.
With businesses already making reductions and some potentially folding, commercial lines auto carriers will be impacted. Operating already on thin profit margins for auto lines, commercial carriers may find it increasingly difficult to maintain profitable combined ratios.
What can you do?
How can commercial carriers ensure they are remaining profitable? Through the use of technology and increased focus on customer relationships, both of which are proving to be more important than ever.
The good news is that this isn’t a hypothetical solution but instead continuous driver monitoring. Replacing outdated processes managing driver risk with continuous driver monitoring gives your customers unmatched insight into the driving behavior of employees. Additionally, it also gives customers the ability to identify and take action against high-risk driving behavior, decreasing crashes and reducing claims frequency.
Why annual motor vehicle record pulls aren’t the answer
Annual motor vehicle record (MVR) pulls present an inherent problem. Only representing a snapshot in time, companies lack visibility until the next pull, typically 364 days away. This makes companies reliant on employees self-reporting, which presents significant risk.
After all, recent violations are a strong indication of future crashes. How can you take the necessary steps to mitigate risk and subsequently ensure safety behind the wheel, avoiding immense litigation?
A cost-effective solution
This is where affordable solutions such as continuous driver monitoring come into play. Courts and attorneys are aware this solution exists, negating the age-old claim of “not knowing.” When incidents like this occur, they end up hurting carriers and their customers. Customers are hit with significant and unplanned costs that directly impact their bottom line.
Learn more on why each additional claim can result from high-risk driving behavior and how carriers can find it increasingly difficult to maintain healthy combined ratios by downloading our white paper.