What should a business model for fleet insurance look like? It should definitely be fundamentally different from the business model for insuring individual vehicles, as it requires different skills, competencies, and processes. The focus must be more on financing future claims than on risk transfer. This is usually done via a unit premium, part of which should be calculated for future claims and part for administration (known as a cost-plus-administration-costs system).
The motor insurance business is often divided into two areas: production (the general management of the entire risk portfolio) and claims. Three areas play an important role in fleet insurance: sustainable risk financing, efficient claims management, and an overview of business performance.
If a claim is reported, a smooth process with clearly defined roles must be ensured so that the claim can be processed efficiently and quickly. Retail customers, for example, do not usually complain about repair times or the success of recourse claims, whereas fleet customers do. Dashboards with different views and, if possible, benchmarks for comparable fleet risks are also required. This enables insurers to take immediate effective action in response to changes in the business.