Zurich points to safety and cost correlation


Insurer says partnerships between insurance companies and transport operators can reduce risk and premiums

Zurich points to safety and cost correlation
Zurich says a safety culture is reflected in premiums.

 

Insurance firm Zurich says a collaborative approach to safety is the path to reduce the cost of risk for transport operators, pointing to its initiative with Fortitude Insurance Group and Metropolitan Express Transport Services (METS).

Under the partnership, METS has instigated a range of work environment improvements for the company and its drivers, Zurich head of risk engineering Mervyn Rea says.

"In collaboration with Zurich’s risk engineering team, METS has introduced a number of innovative practices which have directly improved their risk grading and safety performance," he says.

"METS has firmly ingrained safety into the company’s culture and has improved several key performance areas including driver health, vehicle maintenance and quality assurance."

Rea says the 44 per cent reduction in the number of claims since 2009, and the 12 per cent drop in average claim cost, has meant the transport operator is now paying less in premiums per vehicle per year.

"As a result of a positive, long and collaborative relationship – during which METS introduced specific risk mitigation factors – the relevant insurance premium per vehicle has been aligned with the lower risk profile as a result of these investments in safety management," he says.

"This provides METS with a higher return in their investment, in addition to reduced incidents, lower retained crash costs, improved efficiencies and an outstanding reputation to customers."

Zurich says its risk engineering services look at the risk factors that affect drivers, and the training they have received; the appropriate nature of vehicles in use, and the fleet’s maintenance; the company’s operations, from hours and goods in transit to inherent exposures; and management controls, such as the safety culture and policies.

"We encourage our customers to embed risk management strongly into their culture and we think METS is a fantastic example of this," Rea says.

 

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