Pop quiz: Which of the following real-life scenarios resulted in a violation on the driver’s motor vehicle record (MVR)?

Executive Summary

The key to profitability in commercial auto insurance is looking at the risk posed by individual drivers, says Ernie Feirer, LexisNexis Risk Solutions. In this article, Feirer explains how emerging driver-based rating factors can help carriers enhance risk selection and pricing—and improve profitability.

(a) Going 55 mph in a 45 mph zone. (b) Making a left turn across two lanes. (c) Causing a fender bender in a parking lot. (d) None of the above.

The answer is (d).

While MVRs provide important insight into the risk associated with a driver, they are just one part of the puzzle. And with more data sources increasingly available, carriers can fit all the pieces together to create a more comprehensive view of risk.

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