Why are costs increasing?
Capital requirements
The immediate trigger for the premium increases were the Solvency 2 regulations. Solvency 2 is the insurance equivalent of Basel2 and require insurers to maintain 50%-100% more capital in low yield assets. To maintain return on equity, premiums must therefore increase or the motor insurance business line should be reduced (withdraw from market segments with long tail exposures and enter business lines with less risk and therefore less capital requirements.
Costs of bodily injury
Human life expectancy is increasing and therefore costs increase in case a person needs lifelong care and support due to a car accident related injury. Medical science is more advanced, providing more treatment options which also increases the costs of bodily injury claims.
More complicated car technology
With alternative power trains and more advanced in-vehicle technology, the cost of spare parts are increasing. The costs of equipment to perform repairs and finally the cost of labour has also increased. Partly due to training and expertise requirements that are very specific to individual makes and models.
With ever increasing insurance costs, now more than ever should this be your top fleet priority to realise potential savings.
Hans Damen – Managing Partner
We help in the following areas:
- We provide independent insurance advice to international fleet owners
- We ask the questions that uncover the policy detail
- We benchmark against our database
- We offer benefit simulation modelling
- We assist with International Commercial Insurance tender programmes.
- We offer and implement performance improvement programs
Engaging many years of car leasing and fleet insurance experience we provide top quality services to our customers.
The tools for success for fleet insurance
- Benchmark Total cost of claims and Total cost of Insurance to understand the financial threat or opportunity. Our benchmark database will enable you to get an objective insight of how your claims and premiums compare to the market.
- We support you in the unbundling of insurance from a lease contract, implementation of own damage self insurance, captive programs and alternative structures such as stop loss or high deductible structures
- Our reporting tools integrate data from all suppliers and countries and present the information in a standardised, supplier independent manner. This reporting provides full transparency and control to ensure the total cost of insurance stays in line with the expected costs.
- With Driver Care we provide integrated safety programs aimed to educate and involve drivers in the insurance cost reduction. These programs consist of communication campaigns, driver assessment and online training, driver apps and personal communications to drivers regarding performance against benchmark of their peers.
Transparency and independence is key.
Our goal is to support the realisation of best terms and conditions for your company. Our sole source of revenue consists of fees received from fleet owners for worked performed. We have no commercial relationships with insurers or brokers and do not receive commission or any other fees from either.
