WIN Magazine - Summer 2014 - (Page 26)

FEATURE UNDERSTANDING THE DATA VIABILITY AND USES FOR UNDERWRITING COMMERCIAL AUTO BY LIAM HUTELMYER T HE COMMERCIAL AUTO underwriting process is in a state of data shock where more information is readily (and cheaply) available than there has ever been before. At the outset, this information presents the best insight into a commercial auto operation that an underwriting outfit has ever been able to observe; however establishing the true correlation between all of the newly available sources of information proves to be difficult without a quantifiable and consistently presented dataset. This article explores the data currently available, how commercial auto underwriters are looking at this data, the implications of this information for the trucking industry, how the use of this information is going to affect the underwriting process in the next few years, as well as what is on the horizon for this segment. THE DATA IS AVAILABLE In addition to what is already being provided alongside the submission documents (application, vehicle schedule, driver schedule, MVRs, IFTAs, loss history), there are additional tools and resources on which the underwriter can rely in evaluating a risk. CSA/SMS - The Federal Motor Carrier Safety Administration's Safety Measurement System (SMS) assembles the data collected from all roadside inspections. These inspections, completed at weigh stations and roadside locations, are performed by commercial vehicle  inspectors and state troopers - judging whether a commercial vehicle and driver are operating in accordance with DOT regulations. These regulations include, but are not limited to, moving violations, hours of service regulations, vehicle maintenance, driver licensing, drug/alcohol testing programs and crash history. 2 6 | v i e w t h i s i s s u e a t | PSP - In addition to the tracking of all roadside inspection data for a motor carrier, the FMCSA has also created a resource for reviewing this information for each CDL holder for a period of three years. The Pre-Employment Screening Program (PSP) is available to motor carriers and CDL holders for a fee. SAFER Snapshot - A Motor Carrier is required to provide information on their operations to the FMCSA on a biennial basis. This information includes basic information from their garaging location, the number of power units they are operating, how their operation is classified, whether they are inter/ intra state, and what cargo is being carried. In addition, the SAFER Snapshot presents the percentage of a motor carrier's roadside inspections that result in Out Of Service (OOS) violations. Licensing & Insurance - The L&I website presents an overview of what authorities a commercial auto

Table of Contents for the Digital Edition of WIN Magazine - Summer 2014

Cover Story: High Risks on the High Seas
The Rising Importance of Property Catastrophe Risk in the “New Normal” of the Nonadmitted Market
Claims Leakage: Plugging the Hole with Predictive Modeling
Managing Casualty Risks
Understanding the Data Viability and Uses for Underwriting Commercial Auto
2014 AAMGA Wholesale Insurance White Paper Winner: Pandemic Insurance in the Excess and Surplus Lines Insurance Industry
2014 AAMGA Wholesale Insurance White Paper Winner: Catastrophe Bonds: Looking Forward
Organizing Emerging Risks: AAMGA Formalizes a Collaborative Approach
In the WIN-ner’s Circle
Index to Advertisers

WIN Magazine - Summer 2014