Underwriting Still Matters
In this age of the internet and quote to bind rating applications, a recent article recent article in the Boston Herald Boston Herald highlighted the continuing need for risk management practices by the insured and front line underwriting by the insurance carrier.
This news article describes an accident that occurred when a van full of special needs adults apparently rear ended a truck. This incident resulted in injuries to several of the passengers. The driver of the van apparently had a very questionable driving record.
We don’t know all of the facts about the incident but the details suggest that in retrospect this driver may not have been the best choice to be operating the vehicle. In this particular circumstance the insured is subject to driver qualification procedures as part of their contract with the State. But any procedure or process is only as effective when implemented.
As a risk manager you need to ask and answer these questions
- Do you have a process to routinely review driving records?
- Do you have a process that supports that review so that the appropriate action is taken when you have a driver that has a driving history that causes concerns?
Even if you don’t have losses, the presence of driving incidents is going to be viewed as a predictor of future costs and will impact the cost of insurance.
- Can your process handle a driver with an out of state license?
- How do you interpret incidents that are over three years old? Five years old? Should they matter?
Some of these questions are complicated and may not have a black and white answer. But the questions need to be asked, regardless of the size of the risk. As your partner for your commercial auto insurance Plymouth Rock underwriters are here to help with these questions. Give us a call.