Venice, Fla.-based truck insurer, First Guard Insurance Co., reduced driver error claims by 25 percent through underwriting improvements, according to company officials.
After observing an upward spike in claims during the fourth quarter of 2007, First Guard focused attention on specifically reducing the number of claims attributable to driver error. These types of claims average over $10,000 per incident, First Guard said.
Among other measures, the company performed an extensive review of its claim and underwriting databases. This data mining effort revealed a variety of discernible findings seemingly common to most claims involving driver error.
For First Guard it then became a matter of re-working its underwriting formula to better address these themes.
“We always prefer underwriting solutions to rate increases; It’s better for our customers,” said Donna Fortuna, president of First Guard.
Source: First Guard Insurance Co.
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