TRANSPORTATION PRACTICE WILLIS TRANSPORT FORUM 2015 TRANSPORT FORUM SYNOPSIS: REDUCING THE COST OF RISK IN THE HAULAGE AND LOGISTICS SECTOR The 2015 Transport Industry Forum, hosted by the Willis Transportation Practice was held at Edgbaston Cricket Ground on Thursday 8th October. The venue provided a superb backdrop to the day’s theme. Guests from nearly 60 companies attended the conference, which consisted of presentations, panel discussions and interactive Q&A sessions. The event focussed on the growing number of challenges in managing motor risk and how best to reduce the cost of risk associated with running a vehicle fleet. SESSION 1: AN ATTRACTIVE RISK – THE UNDERWRITER’S VIEW Marc Wanless, Aviva This session focused on the current issues facing the UK motor fleet insurance market, the factors influencing it and, in particular, what operators can do to differentiate their business, making it more attractive to insurers. The presentation highlighted that between 2005 and 2013: The number of UK road traffic accidents fell by 30% The number of claims for bodily injury increased by 63% The average cost of bodily injury claims increased by 73% These trends, which continue to impact the underwriting stance taken by UK motor fleet insurers, were discussed along with some of the key areas that insurers look at when deciding whether they wish to quote for a risk or not. The presentation highlighted that full disclosure of positive risk features can influence the insurer’s decision regarding terms. The speaker then discussed how insurers take into consideration factors such as vehicle/ fleet characteristics, driver turnover rates, recruitment/induction procedures and managerial control measures. These are in addition to traditional areas of focus such as risk management initiatives, use of technology (for example cameras and telematics) and loss management data. In conclusion, there needs to be more communication between parties. Operators need to be prepared to provide more detailed information to brokers in order to assist them in negotiating competitive policy terms. “This was one of the best transport industry seminars I can remember attending. Each of the guest speakers provided genuine insight into their areas of specialism and I took much away from the day.” Group Risk & Insurance Manager, Wincanton
Transcript
TRANSPORTATION PRACTICEWILLIS TRANSPORT FORUM 2015
TRANSPORT FORUM SYNOPSIS: REDUCING THE COST OF RISK IN THE HAULAGE AND LOGISTICS SECTORThe 2015 Transport Industry Forum, hosted by the Willis Transportation Practice was held at Edgbaston Cricket Ground on Thursday 8th October. The venue provided a superb backdrop to the day’s theme.
Guests from nearly 60 companies attended the conference, which consisted of presentations, panel discussions and interactive Q&A sessions. The event focussed on the growing number of challenges in managing motor risk and how best to reduce the cost of risk associated with running a vehicle fleet.
SESSION 1: AN ATTRACTIVE RISK – THE UNDERWRITER’S VIEWMarc Wanless, Aviva
This session focused on the current issues facing the UK motor fleet insurance market, the factors influencing it and, in particular, what operators can do to differentiate their business, making it more attractive to insurers.
The presentation highlighted that between 2005 and 2013:
� The number of UK road traffic accidents fell by 30% � The number of claims for bodily injury increased by 63% � The average cost of bodily injury claims increased by 73%
These trends, which continue to impact the underwriting stance taken by UK motor fleet insurers, were discussed along with some of the key areas that insurers look at when deciding whether they wish to quote for a risk or not.
The presentation highlighted that full disclosure of positive risk features can influence the insurer’s decision regarding terms.
The speaker then discussed how insurers take into consideration factors such as vehicle/fleet characteristics, driver turnover rates, recruitment/induction procedures and managerial control measures.
These are in addition to traditional areas of focus such as risk management initiatives, use of technology (for example cameras and telematics) and loss management data.
In conclusion, there needs to be more communication between parties. Operators need to be prepared to provide more detailed information to brokers in order to assist them in negotiating competitive policy terms.
“This was one of the best transport industry seminars I can remember attending. Each of the guest speakers provided genuine insight into their areas of specialism and I took much away from the day.”
This session addressed the use of technology within vehicles, in particular, telematics and in-vehicle cameras and whether they are truly advantageous in managing fleet risk.
Technology can impact on driver behaviour and reduce the likelihood of collisions occurring; proactively to avoid collisions and reactively at the scene.
It can be used proactively to reduce the likelihood of collisions by monitoring driver behaviour and coaching them on data output.
Used reactively, telematics data leading up to a collision can identify who was at fault, plus camera footage can in turn provide protection for drivers and assist in defending or settling claims quickly.
The presentation highlighted that using correct data parameters and proactively utilising the output will enable managers to identify ‘at-risk’ and ‘good’ drivers through effective reporting as well as prompting feedback. Feedback should not only include at-risk drivers but also good drivers as praise encourages further improvement.
The data output can also be applied to coaching individual drivers. A significant part of coaching is getting drivers to reflect on their behaviours, accept the data output and agree goals with an ongoing commitment to self-evaluate when driving.
In conclusion, the effective use of technology will enable companies to make continual improvements in driver behaviour and would become a critical friend to the business.
SESSION 3: ACCREDITATION – DO THE RIGHT THING AND BE SEEN TO DO ITSally Thornley, Freight Transport Association (FTA)
This session outlined what we mean by accreditation in the transport industry, going on to cover the benefits of accreditation to fleet operators. The session also highlighted two examples of schemes being run by the FTA and how they’re driving best practice in the industry.
Accreditation indicates that the organisation has achieved an appropriate level of organisational proficiency and that it has reliable mechanisms in operation to continually improve the quality of services
it delivers. It can also identify areas of improvement and provide suggestions on how these could be made.
Accreditation requires that an organisation have numerous management controls in place related to accountability and efficient, effective use of available resources in providing services. As indicated in the first session, An Underwriters View, accreditation signifies that the organisation is proactively working to mitigate risk and therefore presents a more attractive risk to the insurer. The first scheme discussed was Driver Agency Accreditation, which is a voluntary initiative developed by FTA together with the driver agency industry, aiming to recognise, encourage and promote good practice within the sector.
The second scheme covered was Van Excellence, which is an industry-led initiative that aims to drive standards of van operator compliance, recognise good practice and enhance the image of the industry.
For more information please visit www.fta.co.uk/daas and www.vanexcellence.co.uk.
SESSION 4: DRIVER RETENTION – IS ‘HARD CASH’ THE ONLY OPTION?Andrew Woolnough, Willis
This session looked at the transport industry’s key talent retention issues, while also introducing new approaches to help organisations turn business strategy into results through their people.The focus was to look at employee risks from a broader perspective due to the fact
that retention of talent is interwoven with attraction and motivation of vehicle drivers. It’s a complicated issue and one which begs the questions of why these interwoven driver/employee risks are so often absent at strategic board level and how might HR professionals and Risk Managers work in a more connected and co-ordinated way.
Looking at the title in a more simple short term and tactical manner, the session outlined further practical steps as an alternative to hard cash, namely offering employer sponsored shopping discounts in order to make the ‘family purse’ stretch further. Additionally, employer led financial awareness and education can further support families through better budgetary planning.
Like most UK employees, drivers can suffer from financial stress which can in turn manifest into driver attrition, higher frequency of accidents and increased injury due to poor concentration and fatigue.
SESSION 5: DELIVERING RISK INTELLIGENCE NOT MANAGEMENT INFORMATIONLaurence Ives, Plexus Law
This session reviewed the history and limitations of traditional claims management information.
Big data has become a fashionable term across all industries for the capture, sharing, analysis and visualisation of data sets.
Technological advancement is transforming the insurance industry, with the motor sector moving quicker than most. The combination of telematics crash data and vehicle camera technology has the potential to transform the claims handling process and improve the management of fleet risk.
To harness this change, claims handling operations have to transform claims handling processes starting with the interaction with the incident and then analysis of the data.
The majority of claims liability decisions will soon be made on the basis of the crash data evidence, both at the desktop and less frequently, in the court room.
The presentation highlighted that advanced software systems can be used to translate accident data into meaningful dashboards to allow risk managers to identify trends and patterns which, if acted upon, will save money.
MORE INFORMATION ON ANY OF THE TOPICS ABOVE OR TO DISCUSS YOUR TRANSFER AND RISK MITIGATION STRATEGIES, PLEASE CONTACT: Mike George UK Transportation Practice LeaderTel: +44 (0)20 3124 6746Email: [email protected]
Willis Limited, Registered number: 181116 England and Wales. Registered address: 51 Lime Street, London EC3M 7DQ. A Lloyd’s Broker. Authorised and regulated by the Financial Conduct Authority for its general insurance mediation activities only.
