Transport Industry Forum Synopsis
Motor risk management – the importance of technology and
an engaged workforce
The 2017 Transport Industry Forum, hosted by the
Willis Towers Watson UK Land Transport Practice, was
held at the Coventry Transport Museum on Thursday
12th October 2017.
The forum was attended by representatives from across
the haulage, logistics and distribution sectors and
consisted of presentations and interactive discussions
with expert speakers from the insurance, legal, human
resources and technology professions.
The day focused on ongoing issues around the ageing
workforce within the logistics industry as well as the
struggles operators are facing in attracting and retaining
employees – issues that are growing in importance.
The event also looked at the approach of insurers,
who are increasingly recognising the impact of the
workforce on the operations and risk management
practices of companies.
This synopsis provides a summary of the presentations
and highlights key points made within each of them and
throughout the day.
“This event was thought-provoking and constructive.
Rather than simply telling delegates what should be
done to secure improvements and minimise risk, it
examined why even best practice does not necessarily
achieve this, suggesting different approaches
to monitoring, analysing and acting on available
information and data. I look forward to attending future
such events.
” effectiveness of risk management initiatives.
Mike Oliver
Trans-law & Consultant BLM
Session 1: Setting the theme
Mark Prowting
Willis Towers Watson
The forum opened with a brief overview of the UK motor
insurance sector, highlighting key changes in legislation
during 2017 that are having a negative impact on the
market, as well as commenting on specific business
sectors that continue to cause concern for insurers.
This market overview also highlighted the recent landfall
hurricanes in the Caribbean and US, and the potential
impact these natural catastrophe losses could have on
2018 reinsurance treaties.
The session drew on comments made during previous
forums regarding the use of vehicle technology and
analysis of driver behaviour as the key elements of an
effective risk management culture, but highlighted the
continued concerns expressed by insurers that, despite
the best efforts of operators, losses in the haulage and
logistics sectors continue to occur at unsustainable levels.
The theme for this year’s forum was given some context,
challenging delegates to question whether they need
to reinvest in existing vehicle technology to improve its
effectiveness.
Delegates were also asked to consider greater
engagement with Human Resources to review possible
benefit solutions to aid recruitment and retention and
the possible impact this would have on improving the
Session 2: Motor insurance for
logistics operators – why are
insurers concerned?
Jason Vallint
AIG
This presentation began by highlighting how driving for a
living is statistically the world’s third riskiest job.
In the UK, people who drive for work are 40% more likely
than other drivers to be involved in a collision.
Jason also discussed the challenges faced by the logistics
sector as a result of the acute driver shortage, estimated
at a shortfall of some 35,000.
This shortage is being further compounded by fewer
job seekers at the same time as traditional sources of
recruitment, such as the military services, are shrinking.
These dynamics, coupled with other barriers to recruitment,
are resulting in genuine concern amongst insurers.
Jason also provided greater insight into how the insurance
sector has been impacted by the Ogden Rate Ruling, which
is having a significant impact on insurers’ reserving. Even
with an increased uptake of in-vehicle camera technology,
there is still a general perception by insurers that losses are
at unsustainable levels.
The impact of recent headline news of major accidents
concerning driver behaviour and the use of vehicles
during a number of recent terrorist events is also fuelling
insurers’ concerns.
The session concluded with thoughts on how to build more
effective motor risk management strategies, including
developing a core risk management culture throughout
an organisation, working with HR to drive improvement in
employee engagement whilst reinvesting existing technology
and data to deliver effective behaviour outcomes.
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Session 3: Joining the dots
Sam Footer
Intelligent Telematics
The session began with details of some 3G camera
technologies and an explanation of how these systems
could help influence the behaviour of drivers through
implementing a series of reward/incentive schemes for
safe drivers as well as providing improvement plans
for those who are underperforming.
The technology, which is able to instantly detect when
an event of interest has occurred, is an example of how
21st century risk management techniques can reduce the
cost of claims, whilst also strengthening the wellbeing and
satisfaction of employees.
Sam also highlighted the need for operators to take a
proactive approach to managing the technology, including
driver behaviour monitoring, first notification of loss, and
proactive claims handling, therefore integrating
the technology as part of the overall claims process.
The presentation also highlighted First Notification of Loss
as an area whereby the technology was able to provide
tangible cost savings through third party intervention and
by reducing the overall claims lifecycle.
The presentation concluded with figures from an existing
operator who, through proactive claims management,
had witnessed significant reductions in their average
cost of claims.
Session 4: It’s rude to ask
Jonathon Backhouse
Backhouse Jones
Jonathon began with images of the people at the centre of
the recent German Wings plane crash and Glasgow bin lorry
crash and went on to explain the key connection between
the two incidents – principally that both individuals omitted
to advise their employers of their respective illnesses.
Both incidents highlighted the threat to employers and
stressed the requirement to take reasonable precautions
in regards to the health of their staff, including undertaking
comprehensive pre-employment checks and ongoing
health assessments in order to minimise the chances
of these occurrences happening and avoid potential
prosecution for negligence.
Jonathon finished by emphasising the importance of
creating a culture where co-workers, managers and
customers are encouraged to talk about any concerns
they have regarding pre-existing medical conditions and of
providing solutions to help deal with the consequences of
these conditions.
Session 5: The road to health
Julie Waddington
Willis Towers Watson
This session highlighted the common health issues that are
prevalent in the haulage, logistics and distribution sectors.
Julie provided an overview of how employers can build
health and benefits packages to provide to employees as
an additional incentive to help retain and attract high-quality
employees. She explained how taking a proactive approach
to resolving health issues amongst employees correlates to a
more energised and motivated workforce.
Some of the more common health risks were identified with
stats on areas such as musculoskeletal injuries, mental
health, obesity, stress and sleep deprivation.
Session 6: Employee engagement
and communicating employee
benefits
Hannah Brocklesbury
Willis Towers Watson
Hannah started by looking at the connection between
successful businesses and employee engagement,
highlighting the four key drivers of engagement: purpose,
work, total rewards and people.
She explained how it is important for employers to
understand how employees experience work at each major
stage in their employee lifecycle.
The second part of the session provided an overview of
how effective communication within a business can help
drive employee engagement. Hannah challenged the
audience to think of employees as consumers and ask four
separate questions when sending out communications:
ƒƒ
Why are they creating the communication?
ƒƒ
Who is being communicated to and how can the
communication be personalised?
ƒƒ
What are the best channels of distribution for each
particular communication?
ƒƒ
How will the content resonate with those receiving
the communication?
The session was concluded by highlighting a number of
innovative ways in which companies can communicate
with their workforce in order to drive further engagement.
A number of real-life examples of companies using different
techniques to communicate with their staff were provided.
These included providing information to employees through
open and accessible technology, dedicating time to
empowering and equipping managers, and hosting strategic
all-employee face-to-face events that unite and galvanise the
workforce behind a common goal and purpose.

The speaker highlighted that providing health and

wellbeing was becoming more of a requirement from
employees, and that those employers with the best
benefits packages were seeing an increase in loyalty from
staff, leading to a reduction in labour turnover.

The presentation concluded by highlighting a number of

the cost effective benefits available to employers, such
as cash plans and dental insurance, both of which would
not attract a high benefit in kind value and which would
potentially be of huge benefit to employees.

Transport Forum Synopsis 3

Contact us
For more information on any of the topics above or to
discuss your transfer and risk mitigation strategies,
please contact:

Mike George
UK Land Transport Practice Leader
mike.george@willistowerswatson.com

Mark Prowting
Account Director
mark.prowting@willistowerswatson.com

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