By Wan Hua Cheng, IO Psychologist at Aon’s Assessment Solutions, Singapore and
Stella Wan, Client Relationship Manager at Aon’s Commercial Risk Solutions, Singapore
For many organizations, especially those which rely on transportation to deliver their proposition, product or service, drivers and dispatch riders are an essential part of the business. Drivers need to deliver the right goods on time and to the right location while driving safely and respecting other road users.
Incidents and accidents can have a significant direct impact on renewal insurance costs and an indirect impact on business risk and reputation. Costs can add up rapidly. From minor repairs with dented or scraped vehicles to more major motor accidents where there is substantial damage to vehicles or property. Claims can also include damage or loss of customers’ cargo, bodily injury to employees and third parties, damage to owned or hired motor vehicles and other consequential losses, such as interruption to business. Each has a financial impact - whether or not corporate policies can be triggered to indemnify.
These events can be avoided. Not all claims result from poor driving skills. Some are due to a driver’s attitude towards operating their vehicle. It is a challenge for most organizations to identify drivers and riders with safe driving behaviors and to hire the right individuals for the frontline.
Typically, it is assumed that younger drivers and riders have limited commercial driving experience. They are often deemed to be riskier with a greater likelihood of having an accident. However, this assumption has been arrived at without any supportive data.
At Aon, we have a customized solution for any organization which relies on their drivers and riders, helping organizations to identify safe drivers and riders through our proprietary tool – Aon’s Drivers Suite.
Assessing Driver Behavior Using Aon’s Drivers Suite
What is Aon’s Drivers Suite?
Aon’s Drivers Suite is a suite of talent assessments with a range of scientifically-proven, off-the shelf tests specifically tailored to measure and rate the competencies of drivers and riders. They do not assess driving skills. It is generally accepted that individuals holding a valid driving license are allowed to operate that particular class of vehicle. The tests focus on evaluating the behaviors and abilities associated with driving and safety risks, such as concentration, reaction speed, impulse control and ability to multitask.
While these assessments have already been shown to be psychometrically robust in order to predict safe driving behaviors in other parts of the world, we worked with a strategic client in Singapore to explore and establish the linkage between incident rate and driving behavior in their organization.
Client Case Example
Our security firm client engages Aon as their insurance broker and risk advisor. In recent years, the client had experienced a steady rise in their insurance premiums. The rise was as a result of the exponential growth of driver and dispatch rider incidents, leading to higher claims, particularly from motor policies.
To improve the situation, the client wanted to put in place a project or program to mitigate driver risk and reduce the number of insurance claims. However, they faced the challenge of identifying the right way to address this and maximize the return-on-investment of any project. As such, they sought help to identify less risky drivers and riders in order to ensure that only the right individuals were selected for the role and, potentially avoid more accidents and reduce the currently high number of incidents. Hiring the right people would mitigate potential incidents, contributing directly and indirectly to improving the firm’s financial performance, reduce business risk and enhance brand reputation.
A total of 166 drivers and riders employed by the client completed Aon’s Drivers Suite assessments which combines specific driving-related cognitive ability tests and a personality questionnaire.
Depending on their combined score across all assessments, each driver was given an overall assessment score banding of low, medium or high. We then analyzed the assessment banding alongside the drivers’ and riders’ talent management data, as well as incident and insurance data from the client.
The results demonstrated that there was no relationship between:
- age and incident data, or
- tenure and incident data
The data commonly used to indicate who would likely be the safest drivers and riders was shown to be of no use in predicting incidents.
The assessment scores were also shown to indicate a driver’s safety level, as defined by the number of incidents and insurance claim value.
We found that those scoring in the highest scoring assessment band have:
- 40% fewer incidents; and
- 50% lower claim value.
What this means in practice
By using talent assessment during the hiring process of drivers and riders, the client could identify candidates who can drive safely.
For our client, this could translate into a:
- 15% cost saving by screening out the lowest band of assessment scorers; and a
- 29% reduction in claim value if only the highest assessment scorers were hired.
Drivers Suite: Invaluable for all Commercial Drivers
The Drivers Suite has been shown to predict safe driving by other commercial drivers, such as bus drivers , truck drivers and train drivers . It has been developed after many years of research, is validated, robust and ready to use.
We showed a client how it could identify the most risky drivers using our Drivers Suite talent assessments. ROI studies such as this are a great way to measure the impact on a business, but you do not need to wait to gather results over time: the impact of making safer driver hires is realized immediately.
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