The loss ratio is a key performance indicator in fleet managementwhen it comes to evaluating the profitability and risk assessment of company vehicles. It describes the ratio of damage incurred to running costs or insurance premiums and provides important information on optimization potential in the fleet.
What is the loss ratio?
The claims ratio indicates how high the proportion of claims settled (e.g. due to accidents or vandalism) is in relation to the insurance premiums paid or the total fleet size. It is usually given as a percentage and is used by both insurers and fleet managers to assess risk.
Sample calculation:
Claims reimbursed per year: €25,000
Insurance premiums paid per year: €50,000
→ Claims ratio: 50%
Why is the loss ratio in the vehicle fleet relevant?
- Insurance premiums: A high claims ratio can lead to higher premiums or make it more difficult to switch to a cheaper provider.
- Safety management: A conspicuous claims rate can indicate deficits in driver instruction, vehicle maintenance or safety culture .
- Cost control: Regular analysis helps to identify cost factors and initiate targeted measures to reduce repair costs or accident figures.
- Contract negotiations: Leasing companies and insurers use the quota as a basis for deciding on conditions.
Factors influencing the loss ratio
- Driving behavior and driver training
- Age and condition of the vehicles
- Type and intensity of use
- Seasonal or regional specialties
- Quality of claims management
Measures to reduce the loss ratio
- Introduction of driver training or driver safety programs
- Use of telematics systems to analyze driving behavior
- Damage prevention through regular maintenance and UVV inspections
- Digital claims management systems and fleet management software to make processes more efficient
- Binding vehicle usage guidelines
Conclusion
The loss ratio is a valuable control instrument in fleet management. It enables an objective assessment of risks and costs and serves as a basis for strategic decisions. Companies that actively monitor and control their loss ratio benefit from lower insurance costs, greater safety and more efficient fleet operations.
