Category: Sales/IT

Business Principle:
Solving systemic problems can be highly profitable


A global property and casualty Insurer provided a specialist motor insurance product to UK motor dealers in order to provide cover for courtesy vehicles offered whilst a customer’s own vehicle was being serviced.

However, there was an underwriting problem in offering a single fixed premium to all customers regardless of experience, past claims experience or general driving risk, which after a few very high value claims had been presented, risked the entire line of business.


Our Expert analysed the problem from a commercial and practical point of view, and understanding that the real losers in this would be the retail motor dealers who would potentially have to bear the total loss of any motoring accident or simply not provide courtesy vehicles at all; commercially something very difficult for them to do.

Instead, our Expert suggested the use of vehicle monitoring and tracking technology installed on the courtesy vehicle fleet. This technology could detect the speed and driving habits of the current driver, automatically alerting the dealership whenever the vehicle was being abused through excessive speeding or “hard” driving. Additionally, due to this tracking technology, “no-go” areas could be instantaneously reacted to; for instance, should the vehicle be taken into the Channel Tunnel or any of the ferry ports there could be early notification of possible theft or uninsured risk when driving the vehicle abroad.

Not only that, but the vehicles would automatically register when they were being driven off the servicing dealerships forecourt and thus would be “on risk” with the global underwriter; essential information when the premiums were charged on a per day used basis.

The outcome was the continuation of the line of business, with the dealerships able to continue hiring vehicle with risk laid off and with the additional benefit of knowing where their vehicles were at any one time – important in multi-site operations. The underwriter was also happy, because as a consequence of this project risk was controlled and accurate premium charging was a given. So huge National sales were enabled through finding a solution to a market structural blockage, in this case using technology. So sometimes sales issues come well before a salesperson can even pick up a phone.

If you recognise some potential road blocks in your current sales model, please call or email us today for a confidential discussion of how our Experts may be able to help improve the flow and drive up your sales.