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Case Study

Transforming a transportation and logistics company’s insurance program

How Marsh enhanced the independent contractor experience and supported operational growth for a leading transportation and logistics company.

11/22/2024

The challenge:

A large transportation and logistics company was facing challenges in scaling and supporting their insurance offering for their independent contractors due to limitations with their previous broker.

Some of the pain points of their prior program included:

  • Hindered growth: Former broker lacked the ability to scale and support program growth in accordance with expected business operational changes and geographic expansion, as well as the projected increase in number of independent contractors and vehicles.
  • Inability to make informed decisions: Previous solution did not provide the transportation and logistics company with sufficient information to offer insight into their independent contractors’ experiences with the program, nor the data analysis tools, financial reporting, or industry benchmarks that would help them measure program success.
  • Lack of data integration: As prior program did not support data integration with the transportation and logistics company’s internal fleet management tool, independent contractors were responsible for also reporting changes to their fleet to the insurer. This separation made it difficult for the organization to accurately assess and quantify risk exposures, causing 20 to 30% in under collection of premiums.
  • Poor independent contractor experience: From long application times and inefficient onboarding processes, to a lack of targeted support and no way to access their insurance documents on demand, independent contractors were growing increasingly frustrated with the former program. This situation led to friction between the independent contractors and the transportation and logistics company, impacting enrollment numbers.
  • Limited educational support for contractors: Independent contractors had limited knowledge of actions that could be taken to lessen the possibility of a claim, reduce insurance costs, and improve safety, and no resources or opportunities to learn more. This lack of education exposed the transportation and logistics company to unnecessary risk.

The solution:

Marsh’s solution for the transportation and logistics company was to develop a scalable program aimed at delivering long term and iterative success.

Key highlights of the solution include:

  • Growth enablement: By establishing operational efficiencies, optimizing the insurance program for the transportation and logistics company’s unique needs, and providing a dedicated support team, Marsh facilitates the company's growth and expansion initiatives.
  • State of the art data analysis tools: The transportation and logistics company now has access to independent contractor satisfaction metrics to measure against standard servicing expectations, including net promoter score (NPS); customer digital adoption and engagement metrics across platforms; bespoke financial reporting; program overview on enrollment; cancellation, rate, and participation metrics; program loss development; and fleet management.
  • Automated data integration: Through integration between Marsh and the transportation and logistics company, vehicle reporting is now automated. When an independent contractor completes a vehicle change through the organization’s fleet management system, Marsh will automatically update their insurance policy and notify them of any changes.
  • Optimized digital capabilities for independent contractors: Through our user-friendly online application process, independent contractors can now easily apply for and bind their policies for all coverages required by the transportation and logistics company.
    After coverage is purchased, independent contractors have access to an intuitive, easy-to-use portal to review their policy details and billing statements, download important insurance documents such as certificates of insurance (COIs) and auto ID cards, and make changes to vehicle count or payment information.
    For more consultative risk management and insurance needs, independent contractors now have access to a dedicated regional account management team of licensed insurance professionals, who are available 7 days a week.
  • Learning development: On our platform, independent contractors can review their customized safety and claims performance dashboards to better recognize the factors they can control to help drive down their insurance costs. Marsh’s team of insurance professionals also provides curated insights, articles, videos, and other resources for independent contractors to better understand their insurance performance, risks, and trends in the last mile industry, primarily focused on improving their safety culture.

The results:

Over the term of the contract, our team members have worked diligently to not only meet the needs of the transportation and logistics company, but also to ensure the insurance offering provided to their independent contractors continues to exceed their expectations.

Our partnership has resulted in the following outcomes:

  • Increased business agility: With Marsh, the transportation and logistics company has a program support team that can rapidly and consistently address changes in their operations and fluctuations in their needs, helping support their growth and manage their total cost of risk. Our data integrations and flexible platform allow the transportation and logistics company to easily scale exponentially, enabling them to focus on growing their delivery business without having to think about the insurance aspects.
  • Stronger data-driven decision-making capabilities: Backed by thorough data analysis, trusted and transparent financial reporting, and highly detailed independent contractor satisfaction metrics, Marsh empowers the transportation and logistics company to confidently and efficiently make decisions about its insurance program to help ensure its continuing success.
  • Effective exposure risk management: This integration has led to significantly better data accuracy, and thereby premiums more commensurate with the risk. It has also mitigated the need for independent contractors to update their fleets for insurance purposes, helping ensure that their vehicles are all properly covered while in business use.
  • Improved independent contractor experience: Our convenient online platform and dedicated regional support model have contributed to the program receiving an average NPS of 89. Since choosing Marsh to manage their program, the transportation and logistics company has seen high enrollment numbers, exceptional retention, and 100% adoption of the self-service portal from those enrolled.
  • Educated independent contractors: Better educated independent contractors are more likely to understand the value of being properly insured and take the steps necessary to create a safety-first culture for their business, ultimately driving down their total cost of risk. Improved performance by the independent contractors helps control the insurance costs that make their way into the transportation and logistics company’s insurance program’s coverage layers, which is vital to managing the overall cost of the risk management program.

We understand that making a change in program management can be a daunting task. When you collaborate with Marsh, you will have access to a dedicated team of seasoned insurance professionals well-versed in designing, optimizing, and supporting affinity insurance programs.

Learn more about our transportation & logistics solutions

Implement a coordinated transportation and logistics insurance program to take the hassle out of managing insurance, allowing you and your third-party network to focus on operations and growth. 

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