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This book contains 12 chapters with different areas of benefit realisation; this is not an exhaustive list but provides those options that, in my experience as a consultant to fleet owners, have proven to be most beneficial in practice.
The insurance cost savings are divided into 4 sections:
Part I: Understanding the current situation and comparison to benchmark of peers
This section starts with a breakdown of the value chain (chapter I) and the earnings for each of the participants. As up to 50% of the paid premium does not go towards the injured party, it is of key importance for the fleet owners to understand where their money goes.
The next three chapters outline the fundamental building blocks to all insurance savings. Firstly, a documentation of the Commercial Fleet risk profile (chapter II). This risk profile should provide information on the risk to be insured and what type of claims materialises.
Chapter III (Claims analysis) outlines the claims analysis set up and discusses in turn how to obtain the right level of insight into the types, severity and frequency of claims and their impact on the premium levels.
The final chapter of section One addresses the Insurance benchmark (chapter IV). Frequently, the only benchmark that is performed is a comparison between the current premium level and those offered by the parties involved in the tender process. This benchmark is flawed as it ignores two key elements. The first one being the benchmark of all available options in the market and the second being the benchmark on incurred claims and hidden (process) costs. The chapter on benchmarking describes how to assemble and utilise a comprehensive benchmark when selecting insurance for a specific fleet.
Part II: Insurance Structure Optimisation
This section outlines how to decrease insurance costs with the implementation of alternative risk structures. The first chapter in this section describes the benefits of an Excess of Loss or Deductible structure (chapter V) whereby part of the risk is retained as a deductible for the fleet owner. The advantage is that an Excess of loss structure reduces the premium and thus total costs. Chapter VI on stop loss structure describes the workings and benefits of a similar structure, which has a benefit over the excess of loss structure in that the risk for the fleet owner is capped, whilst premium savings can still be realised. The next chapter elaborates on Own Damage Self Insurance (chapter VII), which is the preferred structure for fleet owners that would like to directly benefit from cost management measures. The final chapter in this section (chapter VIII) Reinsurance Captive solutions, covers risk retention for Comprehensive cover which is the ultimate step for a fleet owner and the one that potentially provides the most significant benefits.
Part III: Levers to Manage Damage Costs
This section provides guidelines on how to pay less for incurred claims with a focus on pro-active claims handling (chapter IX) and effective damage recoveries (chapter X). However, negotiations on body repair network agreements to obtain discounts on spare parts and labour costs are out of scope of this book. The section then moves onto how to ensure the number of claims decrease with influencing driver behaviour (chapter XI).
Part IV: Insurance procurement
This section provides guidelines on the set up of the insurance tender process (chapter XII).
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Thuiswinkel Waarborg