In July 2013, one of Towergate's Fleetcare+ clients' insurance came round for renewal. Over the previous 12 months, Towergate's claims team had helped significantly reduce the company's accident frequency through the Fleetcare+ targeted risk management strategies.
Unfortunately, sometimes the unavoidable happens and one large claim was made on the policy resulting in the company's claims loss ratio exceeding 100%. As you would expect with a loss ratio of this size the standard insurance market response would be a high rate increase. Fortunately, the partnership that the client enters in to with the Fleetcare+ contract means the insurer doesn't react as the standard market would, and instead has faith in the power of telematics to improve the risk in the long term.
To support this partnership the two year Fleetcare+ contract stipulates that the insurer can only pass a maximum rate increase of 25% in the second year on a loss ratio exceeding 100%, far less than we would expect to see in the standard fleet market saving the client many thousands of pounds as he continues to improve his fleet risk.
"In this particular case the Fleetcare+ policy did its job. The risk has improved in terms of accident numbers but suffered one large loss. This capped increase gives the client the breathing space they need in terms of premium spend to continue improving the risk and look forward to a much better 12 months claims experience." Alistair Warden Account Executive Manager
Towergate Fleetcare+ features:
Two year contract
Second year premium reductions for well performing fleets
Second year capped premium increases / premium reductions
Dedicated Claims Liaison Manager
Telematics data used
Profit share at the end of the second year