In this whitepaper, you’ll learn how driver-centric assets can augment your underwriting process to drive better risk selection and pricing, lower costs and improve profitability.
For some carriers, commercial auto consistently under-performs other lines of business and is frequently leveraged as a loss leader on accounts to obtain other, more profitable lines. Given the decrease in investment income over the past several years and the outlook for the next several, there is a renewed focus for every line to sustain an underwriting profit. Commercial auto is no exception.
When it comes to assessing commercial auto risks, carriers must look beyond the common risk characteristics of the fleet. Given that most severity-driven claims are due to driver error, carriers can benefit from gaining additional insight into individual drivers.
This begs the question: how do you better understand driver risk? In addition to current underwriting methods, using driver-based data assets can enable carriers to look more closely at the exposure from specific drivers. As a result, carriers can better determine the risk associated with a given policy and price it appropriately—or not at all.
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