As the data is easily obtainable from both public and private sources, failure of an insured to obtain information on their carriers can and will be used against them in a courtroom. So even the smallest truck broker is using carrier selection software to qualify carriers that not only protect their insurance company and balance sheet, but also to augment commerce by providing their shipper customers the best carriers they can find.
From an insurance agent's perspective, it is important to know that there is not only the opportunity to sell best-in-class insurance coverage, but also provide risk management turnkey within the insurance sale. We see no other such value added being offered in the logistic insurance sector.
There are several good vendors in the carrier selection data and software business. There is only one great one from our perspective, SaferWatch. www.saferwatch.com
While GTU has no financial interest in SaferWatch, we have partnered with them for many years. The partnership has been so good that our carrier insurance partners for whom we have the underwriting pen also believe in their inherent value. Likewise, as GTU is the only underwriter nationally to have a trucking insurance division alongside a truck brokerage insurance division, SaferWatch wanted to learn how a trucking underwriter views and grades carriers. The upshot of our collective work is that we created a carrier risk management algorithm which grades every single carrier in the FMCSA database like a trucking underwriter would. Go to http://www.saferwatch.com/main/gtu-saferwatch-snapshot/ .
Note the carrier selection algorithm is based on carrier risk selection underwriting that has been both tested and proven for over 30 years. As part of our service, we actually upload from Excel the carrier name and MC(motor carrier #) and provide the report free of charge.
The idea is not to advise a truck brokerage or their agent who their carrier heroes or zeroes are. Rather, it is to provide data that integrates with their TMS ( transportation management software) . So with their TMS, they can know which carriers, shippers and freight lanes are most profitable to them. By integrating SaferWatch, they can dovetail carriers that have the risk management data with profitability- thereby creating a scientific, best practices solution to something today that is used subjectively and with happenstance.
What makes this more compelling is that if GTU writes the contingent auto liability or the truck brokerage liability, our carrier insurance partners will provide free annual service with SaferWatch by discounting the premium for the cost of the basic annual service. So at binding they simply get a username and password and they are able to add and delete carriers at will. The value of the service is that anytime the information changes, whether it be safety rating, CSA-e percentile score or insurance carrier, that data will be automatically updated and the insured will be notified of the changes. Pretty cool indeed.
So how does SaferWatch compare to other carrier selection software services? We looked at two competitors and this is what we found out:
- Carrier 411
From a very general perspective, Carrier411 is similar to SaferWatch Guardian, except it is more expensive and less robust.
- SaferWatch technology for updating carrier data is superior to Carrier411.
- SaferWatch calculates and provides CSA-e percentile scores, the comparable to CSA scores still used by SMS. Carrier411 does not.
- SaferWatch Guardian offers users the ability to create custom carrier selection guidelines, as well as multiple shipper specific checklists. Carrier411 does not.
- At the next level, SaferWatch Assure includes Certificate of Insurance requesting and monitoring. Carrier411 does not.
- Carrier411 has FreightGuard Reports for marketplace fraud reporting. These reports are very popular with their users. SaferWatch counters with TIA Watchdog Reports, however, this feature is only available to TIA members.
2. RMIS (Registry Monitoring Insurance Services)
From the perspective of a third party certificate of insurance company, RMIS is similar to SaferWatch Assure. That said, as a robust carrier risk management solution (with certificates of insurance), RMIS falls far short of SaferWatch Assure, and it too, is far more expensive.
- SaferWatch data, and technology for updating carrier data is far superior to RMIS.
- SaferWatch calculates and provides CSA-e percentile scores, the comparable to CSA scores still used by SMS. RMIS does not.
- SaferWatch provides users the ability to create custom carrier selection guidelines, as well as multiple shipper specific checklists. RMIS does not.
- SaferWatch provides carrier search tools for capacity development on a scale that no other product can compete with.
- SaferWatch Assure provides immediate 'load waiting' Certificate of Insurance requesting with a Service Level Guarantee. RMIS does not.
- SaferWatch Assure offers unlimited requesting and monitoring. RMIS prices based on the number of carriers monitored.
- SaferWatch Assure is priced hundreds of dollars (sometimes $1000's) less per month than RMIS
Note SaferWatch integrates with virtually all TMS ( transportation management software). It is not a requirement that the insured change vendors. We are just trying to offer a value added and since the service is less expensive , it’s a why not from our perspective.
So in closing, SaferWatch is the perfect risk management solution for truck brokers. The data is more robust and it is cheaper. It's like the insured getting better coverage at a cheaper price. Truly the value added proposition.
