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Accident Event Recorder: Safety, Claims and Litigation Services.

What It Is

This program provides commercial transportation insurance customers with access to Accident Event Recorder technology, an extremely valuable loss-control tool. Accident Event Recorders, which can record both video and audio when a driving incident occurs, can help to improve driver performance, reduce accidents and save lives. Footage from Accident Event Recorders also assists safety directors in enhancing their training programs and acts as an eyewitness at the scene of an accident. The goal in developing this program was to assist customers in improving driver behavior, ultimately making them better operators and lowering loss costs. Safety, Claims and Litigation Services is an affiliate of National Interstate Insurance Group.

Why It Is Different

When Safety, Claims and Litigation Services launched this program in 2006, the technology was relatively new to the industry, and SCLS was one of the first loss-control companies to promote Accident Event Recorders through a customer loyalty program. To date, SCLS has helped install more than 14,000 of the recorders in our customers' vehicles, which offer a mechanism for controlling losses and overall insurance costs. It's not surprising that safer drivers have fewer and less-severe accidents, resulting in improved claims experience and lower insurance premiums.

How They Did It

By 2006, SCLS had discovered that Accident Event Recorder technology had made a small but important footprint in the commercial transportation arena. After months of investigating the various technologies offered by Accident Event Recorder manufacturers, SCLS brainstormed different methods by which they could assist customers with the use of this intriguing technology. Because the technology was so new, and the infrastructure to implement the Accident Event Recorder review process would be onerous to commercial transporters, SCLS decided to partner with certain commercial transportation companies through the Accident Event Recorder program to provide assistance managing loss control and claims costs. "Since the technology is always changing and new products are being introduced in the market, we are constantly enhancing and updating the program to meet the everchanging needs of our customers and the industry," according to the company submission.

Measuring Success

The success of the Accident Event Recorder program can be measured in many different ways. First and foremost, operators are able to significantly reduce their accident frequency and severity by effectively using and managing Accident Event Recorder technology. In a recent study conducted to evaluate the effects of recorders on claims results, SCLS saw an average savings of 25% in claims costs and a drop in the frequency of claims by approximately 10%. Another success factor of the program is the enhanced ability to maintain long-term partnerships with our customers. "Safety excellence is a major focus in all insurance programs, and this advanced loss-control tool allows us to build relationships with best-in-class transportation operators. Finally, SCIS has become known as an industry leader when it comes to recorder technology. The customer loyalty program gives us a competitive edge in marketing our products and services."

Expert Review

"This project achieves its objective by gathering or assembling and making available to clients, in a convenient format, relevant data to which clients would not normally have access. Data is obtained by using a video camera to record driver data that can subsequently be analyzed to identify ways in which safe driving habits can be inculcated and encouraged. This company views loss events as preventable rather than as inevitable, and so the focus is on proactive preventive actions rather than on post-loss attempts to minimize loss costs."

Reviewer:

William Panning, executive vice president, Willis Re
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Title Annotation:INNOVATORS SHOWCASE: Property/Casualty
Publication:Best's Review
Geographic Code:1USA
Date:Jan 1, 2012
Words:584
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