It is common when shopping for Fleet Insurance and Motor Insurance, that you will be asked for your confirmed claims experience document during the quotation period.
Your confirmed claims experience document essentially works as a no claims discount for your fleet insurance. It details sets of data so insurers can quickly determine a quotation based on your claims history. The most common sets of data detailed are:
- Vehicle years– Shows the number of vehicles insured on a policy, which is calculated on a pro-rata basis, this is calculated from inception up until the date that the CCE is generated.
For example if you have had 5 vehicles on a policy for 12 months and that was added 3 months prior to policy end this would work out to roughly 5.25 vehicle years. - Claims– Is a note of the total number of claims reported during a policy period including outstanding claims.
Some insurers will split this up into windscreen claims and all other claims, for example an underwriter would look more favorably on a small windscreen claim that has cost £1000 than a multi vehicle collision that has a £1000 reserve - Claims Costs- Claims costs are usually split up into the following on CCE:
-Accidental Damage Claims Paid
-Fire & Theft Claims Paid
-Third Party Claims Paid
-Accidental Damage Claims Outstanding
-Fire & Theft Claims Outstanding
-Third Party Claims Outstanding.
-For costs in the claims outstanding section have they have the potential to move up or down. When a loss adjuster puts an estimate on these claims it is sometimes called a reserve.
The reason these figures are important is this is how an insurer works out a “burning rating” this is worked out in two ways: Claims Frequency (Number of claims/Number of vehicle years) x Average cost per claim or Average cost per vehicle year(Total claim cost/Vehicle years).
Confirmed Claims Experience
The reason these figures are important is this is how an insurer works out a “burning rating” this is worked out in two ways: Claims Frequency (Number of claims/Number of vehicle years) x Average cost per claim or Average cost per vehicle year(Total claim cost/Vehicle years).
The underwriters will then use a “book rating” sometimes called “exposure” which takes into account things like ABI rating of the vehicle, GVW, Location (Not just where they are parked overnight but area of operation & type of journeys), Mix of vehicle types on policy, value of vehicles on policy etc.
Without your Confirmed Claims Experience it is impossible for an insurer to put a premium on your fleet insurance.
It is becoming more and more common now for brokers to hold onto your claims experience for as long as possible which in turn gives you less time to obtain the best deal. Its important that you request your CCE as early as possible.
If you are having issues with obtaining your confirmed claims experience please reach out as we may be able to use a signed reporting mandate and go directly to the underwriters to get this for you.
If you have any questions at all surrounding fleet insurance feel free to give us a call on01905 27775 or email us at [email protected]
Does the person responsible for handling the insurance in your business need to see this? Check out the link below to see our CCE document infographic worth sharing
