Hunter Nelson reveals why insurers raise rates even with high profits: high driver turnover, unqualified drivers, and frequent claims. Claim frequency matters more than claim size. Agents need the right language to convince underwriters a fleet is low-risk and keep premiums down.
And that just kills all the profit on all the other guys. So that's why even though the insurance company is making tons of money off you guys, they're getting the rates jacked up. So what are these factors that need to be explained to the insurance agent so they can go tell the underwriter, make them comfortable that these verdicts are going to be very low? Is going to be driver turnover. If they got new drivers who are constantly being turned over, that means there's something probably wrong in the, in the underwriter's eyes. It's having unqualified drivers. It's having lots of frequency. Frequency can almost be worse than the actual claim payouts. If you go through 5 years, for example, 20 trucks, and you turn in 3 claims and one's a million-dollar payout, that's really not going to be that bad because your claim frequency is incredibly
