Risk management plan deployed resulting in claims rebate

Jun 22, 2018

Case Study: Dave Chicken of Simply Outsourced Ltd

Simply Outsourced operate throughout the UK and Ireland to install and maintain technology solutions for large retail chains.

Their engineers are all fully trained to deliver their services across a wide number of sites on a variety of equipment and naturally have a large fleet of vehicles.

Unfortunately, due to the number of vehicle they operate, their fleet claims were on the very high side, making them an unattractive business to the insurance market. In 2014, they had a fleet loss ratio of around 300%! Yutree presented a premiums versus claims analysis to show how unattractive their risk had become.

Yutree supported the Simply Outsourced management team to deliver the news that they would be uninsurable, and not have a business, if they continued to have such a high claim rate.

We discussed several risk management improvements to Simply Outsourced in order to present the risk to the insurance market. Key highlights to the plan included:

  • Repeat offenders – they had several drivers that were regularly having accidents. The client agreed to a “2 strikes and you’re out” policy. To that end, 3 drivers left the company.
  • Trackers and telematics to be installed in all vehicles
  • Driver training
  • Yutree recommended changing the fleet from vans to cars where possible so that the drivers took more pride in their vehicle
  • Yutree recommended licence checking and cameras in vehicles (both facing forward and facing the driver)

In 2015, their insurers, Aviva, initially declined to offer renewal terms for the fleet and there were no other realistic options in the marketplace.

Yutree utilised their strong working relationship with Aviva, to convince them that the remedial action being undertaken would return the fleet to profit. Simply Outsourced renewed and during the following 12 months, the fleet improved to a loss ratio below 80%.

Yutree continued working with the client to refine their fleet risk management and had continuous dialogue with Aviva, including 2 risk management surveys throughout the year, where they observed how well the fleet management had transformed.

They have had such a good 2016/17 policy year, that we have just delivered them a substantial low claims rebate cheque as their loss ratio is now under 40% and their fleet premiums are reducing significantly.

Through our risk management expertise, Yutree were able to put Simply Outsourced in a position where they received a claims rebate, something they didn’t ever think would happen.

It always pays to engage a broker with risk management expertise. To find out how Yutree could help your business please visit yutree.com

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