The loss run must also distinguish if it includes only one line of coverage or more. If it includes more, such as Auto Liability, Auto Physical Damage, and Motor truck cargo, then these lines must be separated and reviewed individually on their own merits.
Underwriters look for measurements of frequency and severety, and whether the loss analysis adequate to lend credibility. When a loss rating process is labeled as creditable, it is usually the part of the process that weighs the most in the rate determination. Other factors are also taken into consideration such as what the trucking companies attitude is toward safety and managements attitude in general.
Financial conditions also plays a role. Most of the time if the loss history is good on a fleet, the financial condition and safety department of the company is strong as well. Frequency is the single worst issue that can plague a trucking company from an insurability standpoint. Severity can happen, and sometimes not even be the carriers fault. Frequency is something that you can control and most underwriters are of the opinion that frequency breeds severity. Since trucking insurance is a loss sensitive product, you can possibly be a good risk with a normal history of losses that show no evidence of either frequency or severity, but still are unprofitable to the insurance company. If this is the case, then likely the company is a good risk, just underpriced.
There are other trucking risks that are not likely to be profitable to an underwriter at any price. These type of operations are usually not sincere to safety and compliance, and are weak on their driver qualifications. There are also other considerations that fleet underwriters look at, such as commodities, length of haul, experience of the drivers, driver turnover, and what the trucking companies driver qualifications are. These are a few of the nuances that go in to underwriting a fleet that the retail agent should be familiar with.
If you are unfamiliar with these terms or uncomfortable quoting on a fleet above 20 units, feel free to contact me and I will work with you on making sense of it all.