ANDO general manager transport and logistics Dion Herdson discusses why insurance providers are changing focus from being the ambulance at the bottom of the cliff to partnering with clients to provide win-win outcomes.
With industry margins so tight – the idea of improving the bottomline by reducing the cost that accidents have on a transport operator is incredibly appealing,” says Herdson.
“There are some excellent safety and risk management vendors, some more established but many of them in their infancy and all are trying to promote their products into the transport industry.
“The services provided vary in technique, cost, and commitment with many relying on multiple new technologies.”
He explains that the problem, however, is that with so many different offerings entering the market there is confusion about which offers the best outcome.
“Employing all of them is not a realistic option and picking the wrong one is a risk many transport operators are wary of, particularly when some offerings add substantial capital outlay and ongoing cost to their business,” says Henderson.
This is where insurers will play an increasing role because they have long been the custodians of data around risk and safety in many industries, including transport, according to Herdson.
“Now that the insurance industry is receiving data from so many sources, we can aggregate it and assume the role of a business analyst to help transport operators make informed decisions around risk management services to deliver targeted results and the biggest bang for their buck,” says Herdson.
He says that industry benchmarking and sharing of emerging trends and insights among customers will be the catalyst setting apart high performing insurers from the average ones, which act only as the ambulance at the bottom of the cliff.
He poses the rhetorical question, ‘Why has this not happened before now?’
“It is the client’s fear from days gone by that their insurers only want information for the sole purpose to avoid paying claims,” says Herdson.
“Such a notion is now archaic, and insurers know that to compete sustainably they need to develop long-term client relationships in the same manner as the banking industry – based on trust and transparency.”
Herdson says both parties are now working toward the same outcome – a safer transport operation having fewer accidents and therefore becoming more profitable.
“It’s not about who wins, but rather about everybody winning,” he says.
Herdson says Ando is one such example of a modern thinking insurer investing heavily in analytics and IT systems.
“We are building an insurance company from the ground up to connect to any system or service to overlay vast quantities of data to detect trends involving fatigue, driver behaviour, vehicle procurement, and environmental factors,” says Herdson.
“We are then in a qualified position with a proposition using scientific data to partner our customers with the right risk management service to get the right outcome for the least outlay,” he says.
“Our aim is to be able to demonstrate how a transport client can maximise savings not just in insurance premiums but in all facets associated with operating a strong safety culture.”
