The business has dramatically grown during the 15 years KTIB has been in control of the insurance arrangements, due to both acquisition of other business and organic growth.
In the early days, their meteoric growth was difficult to manage, resulting in the frequency and cost of claims for the Fleet, Goods in Transit and Liability becoming something of a rollercoaster ride!
A notable deterioration in both the frequency of losses, claims cost per vehicle, average claims cost and total value of losses were all present. A significant premium increase at the next renewal was looking likely on this basis.
Turning to us for help - KTIB identified that regional and economic influences created a difficulty in recruiting experienced drivers. Additionally, one of the earlier acquired businesses had a number of poorer performing drivers in its ranks and their agency driver dependency was much higher than ideal.
KTIB involved an associate specialising in a range of Driver Training programmes for large Fleet operators. After careful analysis of claims types and sources, KTIB recommended a tailored programme for all drivers – the client took our advice and worked with us to deliver this with minimum interruption to the business.
60 drivers were trained in a 2 month period, followed by all new drivers as they joined the company in an induction based manner.
The positive action taken by the client was viewed very positively by the insurance company – the client was clearly committed to improving their drivers behaviour which would lead to them becoming a better risk.
That year, the insurer took a more positive stance on renewal than the bare claims figures suggested they might and the claims ratio was returned from well over 100% to a profitable level after only 3 years.
In 2008, KTIB was approached by a haulage company whose claims experience was in a highly distressed state with a continually increasing claims frequency and ratio over a 3 – 5 year period.
Their Risk Management program had not grown at the rate the business had and they came to us for expert advice on how to solve this issue – we later discovered there were a few issues.
Analysis of the claims history and how certain claims were managed demonstrated a number of inter-related issues. For example, there was a clear link between driver attitude and the hitting of inanimate objects.
Unfortunately, there had been a shift in power too far towards the drivers who were not as accountable as they should have been, disciplined sufficiently on a consistent basis or personally negatively affected for their poor claims performance – there was a clear gap between corporate attitude at management and driver levels.
Taking a number of factors into account, we identified a range of issues – practical methods to generate improvement and a timetabled, operationally aware, action plan to begin to address the problems.
This led to development and implementation of a continuous strategy to:
A key message is consistency in management. KTIB deployed its experienced team to help manage all facets of the plan for greatest benefit to the client.
After utilising our recommendations and vastly improving their own claims management with our recommended protocols, the results were clear to see, right down to the bottom line.
In addition to the claims improvement, by working with KTIB, the client has achieved:
Despite changing insurer a couple of times since, KTIB continue to represent this highly successful business that has an evolved claims ratio and premiums to match!