In recent years, commercial lines insurers have struggled with profitability and experienced the poorest underwriting results in recent memory, prompting the realization that this industry sector needs a better strategy for assessing risk potential. At the same time, insurers need viable data-based mechanisms to help improve driver behavior. According to a 2017 study conducted by Conning, the 2015 loss and combined ratios of 87.7 percent and 108.8 percent exceeded overall commercial lines numbers by 15 points. This disappointing downturn in commercial lines insurance profitability continued into 2016, primarily caused by an increase in adverse loss frequency and severity trends. Across the industry, a confluence of factors has complicated scoring and made accurate risk management more unpredictable.
This white paper explores the ways through which commercial insurance telematics can help turn around the declines in the industry. Commercial insurance telematics can provide relevant, real-time information to firms and stakeholders, generating value, boosting efficiency, and enhancing visibility into processes and operations.