Taking Control: How a Telecomms Company Reduced Fleet Claims 30% and Earned Premium Rebates

The Challenge

A large telecommunications company operating 2,500 vehicles wanted to take ownership of their fleet claims experience and premium costs. They were frustrated with rising premiums and lack of control over risk management. The company wanted to retain more risk themselves , reducing reliance on traditional insurance and taking direct accountability for fleet performance. But they needed expertise to improve their risk profile first, or an increased retention would not drive the right outcome.

What Was Done

We conducted a ground-up analysis of three years of claims data to identify root causes of the frequency and severity. The analysis revealed specific driver behaviours, vehicle types, and operational patterns driving claims experience.

Based on this analysis, we structured a new programme:

  1. Self-retained deductible structure - reducing premium costs and reducing Insurance Premium Tax on the retained portion

  2. Premium rebate mechanism - if the company achieved target loss ratio, premium rebates would fund ongoing risk management investment

  3. Comprehensive risk management framework - driver onboarding procedures, incident reporting protocols, vehicle inspection standards, and performance monitoring

The economic structure aligned incentives: better claims performance directly funded risk management improvements, creating a virtuous cycle.

We implemented operational frameworks including driver handbooks, claims reporting guidelines, incident investigation procedures, and performance dashboards. The company took direct control of claims handling and risk management rather than outsourcing to insurers.

The Outcome

Within 18 months:

  • Claims frequency reduced 30% from baseline

  • Loss ratio achieved below target threshold, triggering 5 figure premium rebate

  • Large loss exposure reduced through targeted risk controls

Company retained control of claims experience and premium economics - Premium rebates funded ongoing risk management programme sustainability The company transformed from passively accepting insurance pricing to actively managing their risk and economics. The programme demonstrated that corporate fleet operators can successfully take ownership of insurance risk when supported with proper analytics, structures, and operational frameworks.