How can the industry better work with consumers and businesses on behaviour change, to see a reduction in risks?

2 minute read

Our Head of Defendant Insurance Services, Faye Fishlock, spoke to Modern Insurance Magazine about how the industry can work better with consumers and businesses on behaviour change, to see a reduction in risks.

"Incentivising behaviour change to see risk reduction is not new.  Telematics has become a game changer for fleet management companies and the key for forward thinking insurers to evolve pay as you go policies and accurately price higher risk market segments against a backdrop of a tech-savvy consumers.

As with any data though, it is only as good as what you do with it and how you understand it.  Our industry has never been more data hungry.  There are now swathes of data scientists employed to provide insight.  Do consumers truly understand everything that is collected?  Probably not.  There is more we can do to assist those using telematic products to understand what behaviour changes can drive risk reduction and premium reduction.  The challenge is to do this in an accessible and easily understood manner that isn’t full of jargon.

Another area where the industry can improve is grey fleet.  The employee behaviour is balanced with the employer who cannot afford to ignore their safety whilst driving on company business.  The industry could strengthen risk management advice for driving policies, to include a drug & alcohol policy and advice around fatigue.  Topical issue briefings should expand, such as driving in the recent heat waves, The Highway Code changes and new criminal driving charges.

Claims mitigation is difficult as the costs of motor claims continues to rise with supply chain issues driving up the cost of repairs, labour and parts.  There is a knock on effect on repair times and a demand increase for courtesy and credit hire vehicles.  Weave in climate change and a shift towards green parts and a shortage of second hand vehicles leading to an increase in their value and an associated increase in their theft and subsequent claims.  An area also ripe for fraud.

Doing the basics brilliantly can have a significant impact.  Know your driver through licence checks, training and education.  Reduce reporting time to the minimum, allowing for third party capture and control of the escalating repair and associated hire costs.  Capture all available evidence from a detailed driver account, additional witness evidence and any dashcam or telematics outputs.  Obtain accurate locus details and photographs of the scene.  If this is collected promptly, it can have a demonstrable impact on claims mitigation but also allow for post collision debriefs, corrective action driver training and the circle of behaviour change and risk reduction goes on."

Faye Fishlock
Head of Defendant Insurance Services, Carpenters Group

Credit: Modern Insurance Magazine