Insurance is the heritage of 13th Century Mediterranean adventurism transposed into 21st Century international commerce. Just as we don’t do business on manuscripts any more, so the traditional structures of insurance are not the most efficient way of managing modern risk. Motor fleet insurance has earned reputation for general inaccessibility, poor value and bad service:
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client control driving waste from management, especially of incidents (claims). Clients possess better knowledge of how to settle their affairs than some distant, possibly ill-informed, loss-adjuster. Up2U’s processing services benchmark at 18% under the market rate |
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beneficial cash-flow of paying incident costs after the event (c. 10%) |
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there is no irrecoverable IPT on Up2U’s services (5%) |
Being more efficient (cheaper) than traditional insurance is not the only benefit of a self-insurance strategy towards motor risk management:
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Better Driving: self-insurance encourages good driving via a financial motive to behave responsibly, while insurance insulates drivers from the financial consequences of their actions – why avoid a risk when you’re not (directly) paying costs? |
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Low Overheads: in self-insurance you only pay for services used; no other business’s inefficient administration is riding your risks |
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Real Rating: self-insurance incident costs relate to your actual risk – there are no pessimistic (“prudent”) calculation conventions loading your premium. Self-insurance solves the insurance headache of a client’s fear of bad-rating |
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Control: Self-insurance puts the client in charge of their risks and their consequences. |
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