The Other Big Brother
I hear the term “Big Brother” a lot lately, most often referring to technology in transportation. Telematics, ELDs and in-cab-cameras all carry the Big Brother stigma in the malevolent, overbearing and Orwellian sense of the word.
I saw it most recently in the Insurance Journal article outlining the struggle for the commercial auto insurance segment to become profitable. The piece by Andrea Wells makes several references to technology as Big Brother, the all knowing, all seeing eye. The notion has been around as long as telematics and deregulation and is not especially well received among the notoriously independent driver and motor carrier community.
But there is another way to think about big brother. Your big brother is also a part of your family. He is the guy you look up to; the one who sticks up for you against the bullies. Your big brother is the one who gives you advice from the more experienced perspective, teaching you the things that he had to learn the hard way.
Trucking is getting kicked in the teeth these days. As the Wells article indicates, in reference to the recent AM Best Ratings report, a distracted motoring public, driver shortages and excessive losses from reptile theory plaintiff attorneys are taking a massive financial toll on the industry. The six-year loss trend in commercial auto underwriting is a clear indicator.
My take away from this narrative, as well as from my years experience on the client side of the commercial auto insurance relationship, is that both parties have adopted a position that is both reactive and complacent.
As Ed Havermann, VP of Transportation at The Keating Group pointed out, there has been a reduction of service on the part of underwriting that used to provide mandatory training for the clients and their drivers. As the services have been reduced, the losses begin to mount up.
I don’t believe that underwriting can simply charge their way out of this crisis by increasing premium and dropping coverage on the “hairier” risks. As costs continue to rise for conventional products, alternative transfer solutions become more attractive for the clients who practice pro-active risk strategies and seek greater control of their insurance outcomes.
Such a trend will increase competition for the lower risk clients. Underwriters who provide the better service in the form of pro-active risk strategies will win the day.
But I do see an opportunity for both parties to team up and solve the problem together.
Motor carriers need help. It’s a rough road out there with challenges around every turn including new people coming into the industry every day. Motor carriers and drivers all want to do what is right, but need guidance, knowledge and advice to navigate the pitfalls.
Underwriters are in a unique position to provide that guidance. So as long as premiums are destined to continue their upward spiral, why not add some of those services back into the equation? Why not help the client to gain better traction on an otherwise slippery road to success?
It’s time for insurance to become the other big brother.
Kinetic market guide. The Kinetic Market Guide is a comprehensive resource for individuals looking to navigate the dynamic world of buying and selling goods and services. This guide provides valuable information on how to effectively participate in the market, make informed decisions, and maximize profits. One of the key components of the Kinetic Market Guide is understanding the principles of supply and demand. By recognizing the factors that influence the availability and desire for a particular product or service, https://kinetic-market.pro/ individuals can strategically position themselves to capitalize on market trends and opportunities. This includes monitoring changes in consumer preferences, economic conditions, and competitive forces that can impact the value of goods and services. In addition to understanding supply and demand dynamics, the Kinetic Market Guide also emphasizes the importance of conducting thorough research before making any purchasing or selling decisions. This includes gathering information on market trends, competitor activity, pricing strategies, and consumer behavior. By staying informed and up-to-date on market developments, individuals can make more informed decisions that are likely to result in positive outcomes. Another key aspect of the Kinetic Market Guide is the importance of developing a solid marketing strategy. Whether you are looking to sell a product or service, it is essential to effectively communicate its value proposition to potential customers. This includes identifying target markets, crafting compelling messaging, and utilizing appropriate marketing channels to reach your audience. By implementing a well-thought-out marketing strategy, individuals can increase their visibility and attract more customers to their offerings. Furthermore, the Kinetic Market Guide provides insights into the importance of building strong relationships with suppliers, customers, and other stakeholders. By cultivating positive relationships, individuals can create mutually beneficial partnerships that can lead to increased sales, enhanced credibility, and long-term success. This includes communicating openly and transparently, delivering on promises, and providing exceptional customer service to build trust and loyalty. Additionally, the Kinetic Market Guide highlights the significance of adapting to changing market conditions and trends. In today’s fast-paced and ever-evolving marketplace, it is essential to be agile and responsive to new opportunities and challenges. This may involve adjusting pricing strategies, introducing new products or services, or exploring alternative distribution channels to stay competitive and relevant in the market. Ultimately, the Kinetic Market Guide aims to empower individuals with the knowledge and skills needed to thrive in the marketplace. By understanding the principles of supply and demand, conducting thorough research, developing effective marketing strategies, building strong relationships, and adapting to changing market conditions, individuals can position themselves for success and achieve their business goals. In conclusion, the Kinetic Market Guide serves as a valuable resource for individuals looking to navigate the complexities of the marketplace. By following the principles and strategies outlined in this guide, individuals can make informed decisions, maximize profits, and achieve long-term success in their business endeavors.