The Markel High Risk Driver Program. Presented by: Rick Geller, CRM Director Safety & Signature Services

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1 The Markel High Risk Driver Program Presented by: Rick Geller, CRM Director Safety & Signature Services

2 THE MARKEL HIGH RISK DRIVER PROGRAM AGENDA Current Situation Markel High Risk Driver Strategy Identifying the Risks Addressing the Risks

3 INTRODUCTION

4 INTRODUCTION Every time a carrier looks to hire a new driver, there is a 1-in-3 chance that they are interviewing a High-Risk Driver.

5 INTRODUCTION

6 THE CURRENT SITUATION

7 THE CURRENT SITUATION High-Risk Drivers Consistently engage in unsafe driving behaviour that significantly increases the probability of crash involvement: > speeding > tail-gating > running red lights > lane hopping

8 THE CURRENT SITUATION Safety Averse Refuse to accept responsibility for their actions Delay or refuse to report violations and crashes

9 THE CURRENT SITUATION Incident-Based Reactive in nature responds to crashes, incidents, violations Very labour/resource intensive Limited options (one size fits all) Carrier s response is usually dependant on crash severity

10 THE CURRENT SITUATION Individual Differences and the High-Risk Commercial Driver Federal Motor Carriers Safety Association Study, 2004

11 THE CURRENT SITUATION Checking the driver s abstract was deemed by all participants to be most important in the hiring process Over-the-road evaluation was rated by 88% of participants as the second most important the hiring process.

12 THE CURRENT SITUATION Continuous tracking of violations, incidents, and crashes was rated as the most important driver evaluation practice by 99% of the participants

13 THE CURRENT SITUATION Safety Managers ranked remedial training as seventh in importance out of 12 elements of safety management

14 THE CURRENT SITUATION Current carrier response: May include management interview of driver May include remedial training as a disciplinary measure Frequently includes termination of driver

15 THE CURRENT SITUATION Post crash driver follow-up Focused on short-term operational impacts Disregard for short- and long-term bottom-line impact Lack of understanding of preventability vs. liability

16 THE MARKEL HIGH RISK DRIVER PROGRAM

17 THE MARKEL HIGH RISK DRIVER PROGRAM An Informational and Behavioural-Based Model

18 THE MARKEL HIGH RISK DRIVER PROGRAM Based on the relationship between drivers who accumulate violations and subsequent crash involvement in the next 12 months.

19 THE MARKEL HIGH RISK DRIVER PROGRAM Two major elements: Measurement Leverage new technology, training & information Intervention Target unsafe behaviour with a variety of progressive interventions

20 THE MARKEL HIGH RISK DRIVER PROGRAM Provides the opportunity for management intervention before the crash happens.

21 IDENTIFYING THE RISKS

22 IDENTIFYING THE RISKS Sources of Information Driver abstracts Violation notices Carrier profiles Inspection reports EOBR devices Customer complaints Engine downloads Public complaints (ECM) Loss registers

23 IDENTIFYING THE RISKS Major Crash Causal Factors Human 93% Environmental 34% Equipment 13%

24 IDENTIFYING THE RISKS Human Crash Causal Factors Recognition Errors 56% Decision Errors 52% Performance Errors 11% Critical Non-Performance 2%

25 IDENTIFYING THE RISKS Recognition Errors Distractions General Inattention Improper Look-out

26 IDENTIFYING THE RISKS Decision Errors Conscious decisions to drive unsafely Gap-judgment errors Driving when knowingly fatigued

27 IDENTIFYING THE RISKS 1) Driver qualification criteria 2) Re-qualification to criteria 4) Appropriate management 3) Qualifies??

28 IDENTIFYING THE RISKS Poor driving behaviour, as demonstrated by prior convictions & involvement in crashes, increases the risks of involvement in future crashes Federal Motor Carriers Safety Association Report FMCSA-RT :

29 IDENTIFYING THE RISKS Federal Motor Carrier Safety Administration (FMCSA) Driver Violation Notification Report (DVN), July 2005 Drivers with violations have crashes at a rate 50% higher than drivers without violations

30 IDENTIFYING THE RISKS Moving violations are the best predictor of future crash involvement.

31 IDENTIFYING THE RISKS

32 IDENTIFYING THE RISKS

33

34

35 IDENTIFYING THE RISKS Markel High-Risk Driver Strategy: 1) Identify and categorize the number of High-Risk Drivers found in a fleet

36 IDENTIFYING THE RISKS 2) Forecast the number and type of High-Risk Driver related crashes in the next 12 months, as well as the associated costs

37 IDENTIFYING THE RISKS 3) Quantify the impact of crashes on a carrier s net income by showing the revenue required to pay for associated costs

38 IDENTIFYING THE RISKS

39 IDENTIFYING THE RISKS

40 IDENTIFYING THE RISKS

41 IDENTIFYING THE RISKS

42 IDENTIFYING THE RISKS

43 IDENTIFYING THE RISKS

44 ADDRESSING THE RISKS

45 ADDRESSING THE RISKS Carriers Options Maintain the status quo and hope for the best Terminate High-Risk Drivers Deal with specific individuals and unique issues Hiring/recruiting practices

46 ADDRESSING THE RISKS Goals Change unsafe behaviour and reduce crashes Increase management options Implement interventions that target unsafe behaviour

47 ADDRESSING THE RISKS Importance of Identifying High-Risk Drivers Crash reduction Insurance costs Staff administration time Operational impacts Human Resources costs

48 ADDRESSING THE RISKS Carrier Benefits of a High-Risk Driver Strategy Maximize driver resources Maximize safety resources Improve bottom-line financial performance Benchmark driver selection process Become an Employer of Choice

49 ADDRESSING THE RISKS Every two miles, the average driver makes 400 observations, 40 decisions, and one mistake. Once every 500 miles, one of these mistakes leads to a near-collision. Once every 61,000 miles, one of these mistakes leads to a crash. Wrong Turn: How the Fight to Make America s Highways Safer Went off the Rails. Malcolm Gladwell, 2001

50 ADDRESSING THE RISKS Ninety percent of the time, High-Risk Drivers think they are very good drivers. Transportation Research Board of the National Academies

51 Conclusion QUESTIONS?

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