ExtraMileIssue11

2018 ISSUE 3
NOTES FROM NATIONAL INTERSTATE INSURANCE FOR OUR PARTNERS IN RISK
Putting cameras in
your vehicles will:
INCREASE DRIVER TURNOVER.
Cost you an arm and a leg.
Make claims worse.
Read about Camera
Mythbusters
on page 14

Contents2018 ISSUE 3
LETTER FROM THE PRESIDENT AND CEO 3
EXTRA MILER MIKE SILVESTRO 4
EXECUTIVE SPOTLIGHT: SCOTT NOERR 6
PRODUCT SPOTLIGHT: VENTURE, VOYAGER AND VELOCITY ALTERNATIVE RISK PROGRAMS 8
A CROWNING ACHIEVEMENT 10
BECOME A BETTER TRUCKING INSURANCE BUYER 12
Letter from the President and CEO
TONY MERCURIO
CAMERA MYTH BUSTERS 14
AERS: WHAT DO YOU THINK OF THEM? 18
WHY VIDEO ALONE ISN’T ENOUGH: THE VALUE OF A MANAGED SERVICE 20
SUMMER PARTY 23
PREPARING FOR THE FUTURE: HIRING TOP TALENT 24
INSURANCE BUILT AROUND FAITH – GOOD FAITH 26
HOW TO REPORT A CLAIM 28
Subscriptions:
Extra Mile magazine is a free, quarterly publication offered by National Interstate Insurance Company in
support of its customers. To subscribe, call 800-929-1500 or email amanda.genther@natl.com.
Publisher:
Established in 1989, National Interstate Insurance is one of the leading specialty property and casualty
insurance companies in the country. Offering more than 30 different insurance products, including traditional
insurance, innovative alternative risk transfer (ART) programs for commercial companies and insurance for
specialty vehicle owners. Its customized solutions are made possible by its talented and dedicated team
members. National Interstate employs over 700 employees in offices in Northeast Ohio, HI, and MO.
© 2018 National Interstate Insurance Company
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Editorial Contributors:
Amanda Genther
Tom King
Todd Koca
Tony Mercurio
Chris Mikolay
Kate Mitchell
Melissa Purcell
Keith Rawson
Sandra Ritley
Josh Stoll
Charlie Wendland
Well over a decade ago, National Interstate became the first
insurance company in the United States to offer a program for in-cab
video cameras, or Automated Event Recorders (AERs). To-date, we’ve
helped our customers install tens of thousands of cameras and have
spent more than $15 million investing in these devices. While it’s
hard to quantify the exact return on this investment, we believe now
more than ever in the power of the camera to provide an irrefutable
witness (particularly in today’s age of runaway verdicts), to help
coach our drivers to better behaviors and to prevent accidents before
they happen.
In the early days of promoting the use of in-cab cameras, we were
met with significant resistance. The early adopters were our bus
and motorcoach customers who understood the power of having a
video when passengers were aboard. While the trucking industry
was much slower to embrace this technology, I believe we’ve
reached a tipping point – it’s getting harder and harder to ignore the
many benefits cameras provide – and easier to explode the myths
surrounding them. For example, I recently attended an Advisory Board
Meeting with one of our trucking group captives. During a session we
call, “Iron Sharpens Iron”, where the members share best practices,
the conversation turned to cameras. One of our more influential
members stood up, turned to his peers and stated emphatically, “I
am here to tell you it is a myth that you will lose drivers if you install
cameras. It simply doesn’t happen, particularly if you do it right.
Repeat after me: It is a myth that you will lose drivers if you install
cameras.”
That conversation led to this issue of the Extra Mile where we aim to
dispel the biggest myths of utilizing AER technology. We hope, if you
haven’t taken the leap into the AER world yet, that this issue helps
you get comfortable installing them.
Finally, if you’ve been following along over the past several issues of
Extra Mile, you’ll know that by the time you receive this one, National
Interstate will have cut the ribbon on our new world headquarters in
Richfield, Ohio. Our goal with the new building is to not only make
space for future growth, but also to provide a first-class venue to
host our many meetings with customers, agents and prospects. It’s a
beautiful space with an upgraded cafeteria for our team and room to
grow to over 1,000 total employees on our three-building campus. Of
course, we recognize the only way we’ll fill the space is by providing
world-class customer service at a fair price, and by delivering the
insurance experience built around you. If you’re in the area, please
stop by. We’d love to show you around!
As always, thank you for your partnership, and may each mile you
drive be a safe one.
Best,
Tony Mercurio
President & CEO
3

MIKE
SILVESTRO
Manning an IT help desk can be challenging and cause a good deal
of frustration when something unexpected happens. It can be even
more difficult for the supervisor of a help desk. Managing a help desk
requires keeping a close eye on tickets coming into the queue, current
ticket load and wait time. These are all things that could trigger stress.
It takes a stable person with a calm disposition to effectively manage
the desk, and National Interstate has found that in Mike Silvestro.
Mike joined our Infrastructure team in 2014 and stepped into the help
desk role with an instant sense of purpose and urgency, leveraging his
experience at a much larger company. His interpersonal communication
skills made an immediate impact on our employees in an extremely
short amount of time. Mike purposely became their first-impression
of our IT organization. He has since been on a continuous mission to
improve the department’s service credibility, while managing a team
of five Help Desk Technicians.
Tuesday to display new available equipment such as laptop models,
peripherals and monitors.
Additionally, he is a driving force with the company’s Ease of Doing
Business (EODB) initiative in regards to employee mobility requests
and updated conference room resources, such as plug and play
screen projection. In a continued effort to maintain transparency, Mike
provides an ongoing upgrade report to our workforce, identifying when
an employee will be due for an equipment upgrade, and what device
he or she will receive. Most of this effort was focused on the corporate
migration from desktops to laptops, resulting in a 200% company-wide
laptop deployment increase last year.
Based on continuous customer feedback, Mike started to address
the problem of aging technology in our shared conference rooms. His
team drove the effort of introducing plug and play automation into
several of our Richfield conference room spaces, thereby improving
the experience of both internal and external customers.
Just as information technology changes and innovates each day, a
help desk must do the same to stay ahead of the curve. Mike played
a large role in introducing several new help desk services, including
our Tech Tuesday initiative. Tech Tuesday’s are designed to build and
maintain customer relationships using more of a casual approach. The
initiative provides comprehensive information to our employees during
the lunch hour. This venue provided a direct line of communication to
IT’s internal customers, giving them a sample view of upcoming IT
products and services such as Salesforce, Remedy Force Ticketing,
Okta, network security initiatives, Microsoft Office services and
softphone functionality for remote users. Mike has also leveraged Tech
MEET MIKE SILVESTRO
WHAT IS YOUR FAVORITE
THING TO DO OUTSIDE OF
THE OFFICE?
Spending time with family
and friends.
IF YOU HAD TO PICK A BOX OF CEREAL THAT REPRESENTS YOUR
PERSONALITY, WHAT WOULD IT BE AND WHY?
Lucky Charms, because I consider myself to be one of the luckiest people
I know.
WHAT WOULD YOU DO IF YOU WON THE LOTTERY?
I would set my family and friends up nicely, and then escape to a very
secluded island with some of my favorite people.
WHAT IS THE BEST PART OF YOUR JOB?
Finding solutions and helping others.
Mike has instilled a simple vision of the proper customer experience
within the help desk operations, gaining positive PR and branding
through word-of-mouth, grass root efforts. His attitude and dedication
to this effort created a positive shift in the overall image of the help desk
team. Mike enjoys the ongoing challenge of identifying the business
needs associated with each problem, inquiry or request involved. He
treats every phone call, email, ticket or in-person discussion as if the
person is his single priority customer.
PEOPLE WOULD BE SURPRISED TO KNOW…
That I used to love singing karaoke.
WHAT WOULD YOU DO IF YOU WEREN’T WORKING IN IT?
I would be an astronaut or NFL quarterback, but I love IT too much to do
anything different.
MY DAY CAN’T START UNTIL…
I’m done hitting snooze several times.
WHAT IS YOUR FAVORITE TV SHOW?
Seinfeld.
WHAT IS IT ABOUT TECHNOLOGY THAT MAKES YOU TICK?
The constant evolution of everything from phones to computers
to software.
4
5

Executive Spotlight
S cot t
Noerr
Chief Information Officer
In your own words, can you tell me what you do?
I believe it’s my responsibility to help our company create a
sustainable, competitive advantage in the marketplace by leveraging
technology and innovation. Once we’ve created that shared vision,
it’s my responsibility to motivate our teams to deliver on that set of
common goals.
What are the most important decisions you
make as a leader?
Without a doubt, the most important decision I make, as well as one
that my leadership team makes, is around acquiring and developing
top talent. As a company, we need to attract and retain people that
are curious, intelligent and ambitious. They need to thrive on change
and believe that they can change the world.
You’ve made a significant amount of
technological improvements since joining
National Interstate in 2016. Is there a single
improvement that you are most proud of
implementing?
I would say the biggest change that has been made is a cultural one.
We are building a culture that believes we are capable of solving any
problem or challenge put in front of us. The more wins we put under
our belt, the more we believe and the more opportunities we want to
act on.
Can you name a person who has had a
tremendous impact on your career? Why and
how did this person impact your life?
My parents definitely taught me the value of working hard from a
young age. But it was Dave Roush who taught me to work smart.
Dave was the founder and Chairman of the Board of Insurance.
com and now serves as President of JDP Holdings. He shaped my
thinking on sales and marketing, innovation and creating value
through association of unrelated ideas or fields.
What books and blogs are you currently
reading?
I just finished reading Sprint – How to Solve Big Problems and Test
New Ideas in Just Five Days by Jake Knapp. In my department, we
will try to implement concepts from this book in several projects we
are executing on this year.
What motivates you to get out of bed in the
morning?
I’m fortunate enough to work at a company I love that is filled with
brilliant people who embrace entrepreneurship. Beginning with our
President & CEO, Tony Mercurio, and his desire to always stretch
ourselves to create and implement the best of something which has
trickled down to the entire company. If you’re someone that wants to
make a difference, it would be hard to find a better environment than
National Interstate.
What do you enjoy doing when you’re not
working?
Spending time with my family. I have three very active children and
a wonderful wife. We spend a majority of our time running the kids
from one sporting event to another, but when we’re not doing that,
we enjoy spending time by a pool or at a beach relaxing.
What have you been listening to in your car to
and from work?
I have a long commute to the office, so I listen to a lot of books on
tape, TED Talks and Harvard Business Review stories. Here’s some
of the more recent books I’ve listened to during my drive: Influence:
The Psychology of Persuasion (Robert B. Cialdini), Pitch Anything:
An Innovative Method for Presenting, Persuading and Winning the
Deal (Oren Klaff) and How to Measure Anything: Finding the Value of
Intangibles in Business (Douglas W. Hubbard).
If you could mass market a t-shirt with a saying
on the front of it, what would it say?
Lead from the front – Innovate!
Where will technology be in five years?
If I could predict that, I’d probably be retired. The only thing I know
is the pace of change is growing exponentially and those who can’t
adapt quickly will be left behind.
6
7

PRODUCT SPOTLIGHT:
VENTURE, VOYAGER AND VELOCITY
ALTERNATIVE
RISK PROGRAMS
Like commercial trucking itself, the market for trucking insurance
moves in cycles. It can be frustrating and pricing is often illogical,
particularly for better run trucking companies. For nearly two
decades, National Interstate has been committed to providing
insurance solutions to the trucking industry, much of it in
alternative risk programs. We recognized the opportunity to create
a program for best-in-class trucking companies that would allow
them to capitalize on their commitment to safety and outstanding
loss performance, and in 2001, National Interstate launched
the Voyager group rental captive program. Voyager immediately
afforded mid-market fleets the opportunity to partner with their
insurance company, take on a reasonable layer of risk ($100K) and
see the benefit of controlling their cost of risk. Today, the Voyager
program stands at 34 active members.
As National Interstate grew the Voyager program through the
early 2000’s, there was interest in the alternative risk concept
from trucking companies who had a lower tolerance for risk.
Recognizing this need, National Interstate launched the Venture
captive program in 2003 to fill a void in our alternative risk
portfolio for insureds seeking to retain the first $50K of risk.
Venture now has 50 active members. Continuously seeking to
offer an insurance experience built around our customers, in
2006 the formation of Velocity rounded out our truck alternative
risk portfolio. Feedback from select Voyager members indicated
that they would be interested in taking on more risk with the
opportunity for a potentially higher reward. The Velocity program
formed, allowing its members to participate in the first $250K
of risk and the opportunity to get back more than half of their
premium. Though these are three distinct programs designed for
fleets of various sizes, each offers its members an experience that
is unique - the opportunity to work closely with National Interstate
to shape and mold your insurance program.
In total, our V programs have grown to become a network of more
than 80 innovative companies. Our members have had more than
$46M in premiums returned to them since 2001.
As a leader in the Truck Alternative Risk space, National Interstate
is always looking for companies who are willing to think differently
about risk financing to set themselves apart from their peers.
➼
➼
➼
➼
➼
Have a commitment to developing and maintaining an
ongoing culture of safety at all levels.
Exhibit a history of best-in-class results evidenced by stable
growth and sound financial statements.
Are willing to commit to a long-term mindset. Participants
must understand that a primary reason for the program is to
minimize wild price fluctuations.
Are willing to provide his or her time and expertise to
continuously raise the bar through sharing of knowledge and
best practices.
Stand out from the crowd by exhibiting risk management
practices beyond industry compliance.
DO YOU HAVE WHAT IT TAKES?
If you have what it takes or you’re an agent of an insured that
has these qualities, call me today at 800-929-1500 x1316 to
learn about an insurance solution that provides access to an
exclusive group of best-in-class companies, stability in a volatile
market, the opportunity for returned premium and investment
income and more.
JOSH STOLL
Director, Truck Alternative Risk
8
9

O P E N
a crowning
achievement
$
Innovation can begin in the most
unexpected places, including a
high school National Dance Team
Competition. During the January
2017 Championships in Orlando,
Florida, two dads, Todd Koca and
Keith Rawson, had a conversation
about their respective careers
while waiting for their daughters’
team to perform. Thirty minutes
into the conversation, Todd knew
he and Keith would eventually
become business partners, and
that business would ultimately
become CROWNSOURCE.
Just prior to this trip to Florida, Todd resigned from the company he
founded in 2005 that had recently been purchased. While he loved the
work, after 3 years Todd was getting the itch to build another business.
He just didn’t know what that would be, until his conversation with
Keith. Keith, the leader of contracting and procurement at YRC
Worldwide, found himself in the same position; he loved his work, and
did it well, saving YRC tens of millions of dollars on supply and service
purchases, but was ready for a new challenge. Although both came
from different industries, Todd and Keith had similar experiences.
Todd was also in the business of saving his clients’ money, to
the tune of over $400M through his health care supply custom
contracting and technology business. Today’s transportation industry,
like healthcare before it, is challenged by thin margins and hyperfragmentation.
Individual organizations do not have the resources or
size to create lower price points on supplies and services. Together,
Todd and Keith knew their knowledge of healthcare purchasing and
transportation procurement could revolutionize transportation through
CROWNSOURCE, a new business designed to transform how the
trucking, moving and storage and passenger transportation industries
purchase supplies and services.
Purchasing Network model increases negotiating
power across the trucking, moving and storage
and passenger transportation industries. The
Purchasing Network membership community is
designed for any size company – from small to
large – to generate the purchasing power needed
to deliver bigger savings that members can
individually attain. Total supply cost savings are passed to members
through CROWNCONNECT, a world-class eCommerce Marketplace and
eProcurement system. CROWNCONNECT not only connects members
to a comprehensive, industry-specific portfolio of deeply discounted
national and regional contracted supplies and services, it delivers a
centralized purchasing platform with purchasing controls to manage
spend more effectively.
CROWNSOURCE provides members depth and breadth of supplies and
services, including office supplies, equipment, furniture and technology,
breakroom supplies, shop supplies, janitorial and cleaning supplies,
safety supplies, facility supplies and facility maintenance services.
Additionally, due to rapid membership growth, CROWNSOURCE is
moving into custom contracting of rolling stock supplies (tires, parts,
fuel, oil, lubes and equipment). CROWNCONNECT will truly be the onestop
shopping experience for members to reduce their total cost on the
items they purchase every day.
The CROWNSOURCE contracting philosophy goes beyond line-item
savings. Contracting experts incorporate pricing, purchase process
and supplier management into the CROWNCONNECT platform, giving
members an easy and effective way to save.
CROWNSOURCE’s sole mission is to improve members’ bottom line
through effective and efficient total supply cost management; simply,
to save members more money on everyday products and services.
CROWNSOURCE is committed to the continuous improvement of
purchasing processes through membership collaboration. Buying
supplies should be easy. Saving money should be easy. Together with
CROWNSOURCE, member companies can realize both without adding
infrastructure, resources or costs.
To learn more about CROWNSOURCE, visit www.crownsourceinc.com
CROWNSOURCE’s mission is to transform how transportation
companies purchase their supplies and services through their total
supply cost management platform, CROWNCONNECT. With decades
of contracting and procurement expertise, industry experience and
supplier relationships, CROWNSOURCE is uniquely prepared to improve
historically thin profit margins across the transportation industry. In
the few short months since its launch, the company is experiencing
rapid growth in membership.
TODD KOCA
President and Chief Executive Officer
CROWNSOURCE delivers value to member companies through its
Membership Purchasing Network and eCommerce Marketplace.
Similar to what Todd experienced in healthcare, the CROWNSOURCE
KEITH RAWSON
Executive Vice President and Chief Operating Officer
10
11

TRUCKING
Become a Better
INSURANCE
BUYER
Your customers view your product as a commodity. Rogue
competitors lurk, willing to offer your customers a cheaper shortterm
deal. Rate increases are only achieved if market forces allow
them, not whether you need them.
Are we talking about the trucking industry or the insurance
industry?
I have often remarked that the trucking and insurance industries
are remarkably similar, and understanding those similarities can
help you become a better insurance buyer.
Economics textbooks would consider the trucking and insurance
industries to be near perfectly competitive markets. In a perfectly
competitive market, producers can choose how much to produce
but not the price at which they can sell their output. Time and
again I hear trucking industry executives lament how if they could
only find more drivers, they could fill more trucks tomorrow. But
they also lament that market forces rarely allow them to get the
rate they really need.
The same is true of the insurance industry; in the insurance
business, supply is determined by available capital, and despite
recent catastrophic weather events, capital is still abundant. While
prices have risen recently in some parts of the insurance industry,
particularly in the excess market for auto liability limits above $1
million, insurance industry executives lament how market forces
will not allow them to set prices where they can achieve adequate
underwriting profit. In fact, with the average commercial trucking
insurer turning in a Combined Ratio (equivalent to the Operating
Ratio in the trucking world) of 110 over the past few years, the
insurance industry has been less profitable than the trucking
industry and is projected to remain so for the foreseeable future.
Still, the industries are symbiotic. Understanding their similarities
will help you better manage your cost of risk:
➼ Just as all trucking fleets are not the same, all insurance
providers are not created equal. While we are told through
frequent television ads that 15 minutes can save you 15% or
more, the insurance needs of for-hire truckers are decidedly
more complex than personal auto, and the products vary
widely. Shrewd insurance buyers will investigate and
understand how to properly value product features like basket
deductibles, aggregate stop losses, varying risk retention
levels, large deductibles and alternative risk options versus
first dollar programs, and the impact of collateral. Educating
yourself on these kinds of terms will allow you to understand
the vast difference between buying insurance and financing
risk. Working with a seasoned insurance broker who
specializes in trucking can help you decipher what you’re
buying, and that broker should encourage you to think about
the smartest way to control the cost of risk intelligently over
time, rather than viewing insurance as a commodity and
going for the “cheapest” deal.
➼ If a trucking fleet provides consistently poor service, they’re
going to hear about it from the shipper. At some point,
the shipper is going to determine that carrier isn’t worth
the hassle, no matter how cheap their rates. Likewise, an
insurance carrier with poor claims service isn’t worth the
heartache. Worse, poor claims outcomes can haunt your fleet
for years, driving up rates down the road. Find an insurance
carrier with true expertise in handling large trucking claims
and demand excellent communication throughout the claims
handling process.
➼ Just as you might do a favor for a loyal shipper, is your
insurance carrier going to step up when it matters most? You
want an insurance carrier that will be your best partner on
your worst day. Get to know insurance company personnel,
including its senior executives, and develop a long-term
partnership. If you build strong relationships with the right
people, it will pay off when you need to rely on them should
the need arise.
➼ Just as there are reefer, tanker or heavy-haul fleets, insurance
carriers offer various classes of business, and the products
they sell can be quite varied. Find an insurance carrier that
specializes in and offers programs for your particular niche,
and make sure they offer the full suite of insurance coverages
you need.
➼ Finally, just as you might invest in technologies to improve
miles per gallon, your insurance carrier should offer tools and
programs that help you mitigate risk so that you avoid claims
to begin with. In other words, there are ways to improve the
ROI of your insurance program, just as there are ways to
maximize miles per gallon.
In the huge, highly competitive trucking industry, there are wellmanaged
fleets, and some that lag behind. Of course, the same
is true for insurance companies, and in the long run, you should
align with a reputable carrier that offers creative, flexible programs
tailored to your risk financing needs.
Astute trucking executives know that in the long run, there is a
difference between price and value; who they’re insured with,
and how they finance risk, can make a significant impact on their
organization.
CHRIS MIKOLAY
VP, National Accounts and Truck Alternative Risk
12
13

MYTH
01
“Cameras Are Too Expensive”
Pete Fioretti, President, Island Transportation
CAMERA
We asked three proficient users of Automated Event
Records (AERs) to share their success stories and
help us debunk the myths around installing a fleetwide
camera program. Here are their stories.
MYTH
BUSTERS
WHAT HE’S USING:
Lytx DriveCam
WHY HE USES DRIVECAM:
There’s not a lot of work involved on our part in getting the videos to
review with the driver. It’s worth every penny because Lytx analyzes
our recordings and acts as a neutral, third party. Their analysis clearly
points out situations where a driver needs to be coached. Therefore,
when a driver gets called in to a meeting with management, we
don’t hear complaints like, “I’m having a meeting with my manager
because he doesn’t like me, or she’s picking on me.” There is a clear
reason for the meeting to correct an unsafe driver behavior with
video evidence to back it up.
ARE CAMERAS WORTH THE MONEY?
The process is worthwhile for sure. The cameras reinforce our
safety culture because every driver is involved and goes through the
process every single day.
ARE YOU SAVING MONEY WHEN IT
COMES TO CLAIMS?
Yes, I definitely find that the cameras help when it comes to adjusting
claims, absolutely. It also helps management to not just take the
driver’s word for it. I’ve been in situations where the driver said, “He
ran into me.” We would go through the entire claim process, and
during a deposition, the driver changed his statement under oath on
the stand. Meanwhile, that claim just tripled in cost for us.
WHAT WAS YOUR RELUCTANCE TO
A CAMERA PROGRAM, PRIOR TO
ADOPTING ONE?
My number one area of reluctance was that the video footage would
prove my driver guilty. However, my company had two large losses,
and I knew that I had to do something dramatic to change our culture
and focus immediately. I became aware of the camera program
through National Interstate and decided to install the cameras in my
fleet. After implementing the program, the cameras helped us settle
claims where we knew we were at fault much quicker, saving our
company money. The faster we can settle a claim, the cheaper it is.
HAVE YOU LOST ANY DRIVERS?
No, less than 1% of my drivers had an issue with it, and that 1%
tends to have an issue with everything. I talk to every new driver
that Island Transportation hires, and not one has an issue with the
cameras. There might be a driver that knows we have cameras,
and he or she won’t apply here, which is okay because there’s a
reason they don’t want to work with a camera – they’re doing
something wrong.
14
15

MYTH
02
MYTH
03
“You will lose drivers if you
install cameras”
Don Carney, Owner, Brothers Auto Transport
“Cameras Could Make a Claim Worse if
the Driver is Doing Something Wrong”
David Butcher, VP of Safety, GO Riteway Transportation Group
WHAT HE’S USING:
Rosco
WHY HE USES ROSCO?
I was first introduced to the concept when I joined the Venture
captive program. Other members presented it to me as a safety
factor that had proven success. When I first came into Venture, I
was new to a captive and I had a lot to learn. One of the first things I
learned was that I needed to get my RASS (Risk Assessment Scoring
System) score in line, and cameras were shown to help improve this
score. RASS is the Venture captive’s benchmarking scoring system.
I was reluctant to utilize in-cab cameras because I feared I would
lose drivers. However, something happened to me personally a few
months before implementation that changed my opinion.
I was visiting my mother in Buffalo, New York, and on the drive
back I passed a semi-truck on the interstate. As I was passing it,
the truck veered off into the left lane, pushing me into the median.
Being a truck driver myself for a long time, I know that things can
happen. But, as I passed his vehicle, I looked up and the driver
was texting on his phone. I continued driving home, stopping for
gas and coffee along the way. I caught up with that truck a second
time in Pennsylvania, and as I passed him again, sure enough, he
was texting. I made the decision that day to put cameras in all of
my trucks because I did not want any of my drivers doing the same
thing that he was doing. Since installing the cameras, it has been
nothing but a positive experience.
WHAT WAS YOUR RELUCTANCE TO
A CAMERA PROGRAM, PRIOR TO
ADOPTING ONE?
I was afraid of the same thing that everyone else was – that the
camera was there to be big brother and do nothing but spy on my
drivers. I was afraid of losing drivers because they thought that with
the cameras, their freedom was taken away. We did have some
drivers threaten to leave, but no one left on their own accord. The
use of cameras has been very valuable to our company.
HAVE YOU LOST ANY DRIVERS?
The only way I lost a driver after implementing them was after
seeing someone do something he/she wasn’t supposed to be doing
on the camera and terminated that person. We did not have anyone
quit or leave the company as a result of the implementation. In fact,
after I installed the first set of cameras, I had a driver get into an
accident, but the camera footage vindicated him and showed that
he was not at fault. After that, I had drivers asking me how quick
they could get a camera in their truck.
ARE CAMERAS WORTH THE MONEY?
Absolutely. In my estimation, a rear-end accident costs in the
neighborhood of $100,000. One accident that we were not at fault
for paid for our cameras the first year.
WHAT HE’S USING:
Lytx plus two continuous-recording hard drive-based solutions in
differing parts of his fleet.
WHY HE USES LYTX?
I liked the Lytx program because I can use it for driver behavior
modification and typically, we can manage our drivers better with
respect to weeding out those caught exhibiting poor behavior who
do not want to change and correcting those that are correctable.
Additionally, people don’t argue with video when they see
themselves doing the things they should not be doing or performing
in a less than safe manner. Also, with the Lytx program, all of our
recordings are stored in the cloud instead of on a hard drive, which
may become corrupted, may not work properly for a driver or are not
replaced when they are removed from one vehicle to another.
HOW HAVE YOU SEEN CLAIMS IMPACTED?
We installed late in 2015 starting with our motorcoaches, then
moved on to our black car division. We did the implementation
incrementally and phased it in throughout 2016. The driver coaching
is performed by operations managers and my safety team. Contrary
to what some may fear, the cameras have had a net-positive impact.
For example, by 2017 we were completely implemented across the
fleet. In that same year, our claims dropped 38%.
HOW DID YOU IMPLEMENT YOUR PROGRAM?
We have quarterly driver safety meetings and used this platform to
give our drivers a heads up that we were moving in that direction.
We were pretty easy going the first 30 days, and no one had any
issue with it. There were no drivers who were fired, and no one quit
on their own accord.
DID YOU HAVE RELUCTANCE TO THE
CAMERA PROGRAM BEFORE IMPLEMENTING?
I didn’t have any reluctance to it; I always believed in the use
of cameras and driver coaching, and using cameras for claims
mitigation. While the drivers were very resistant to it in the
beginning, after about two to three months they relaxed because
they found out that they’re being exonerated in accidents more than
they are getting their wrist slapped.
ARE YOU SAVING MONEY WHEN IT
COMES TO CLAIMS?
Absolutely. Because we changed our driver’s behaviors, our safety culture
improved, resulting in less claims. Due to our effective use of the camera
program, we saw an overall significant reduction in premiums.
When an adjuster needs to know something, we have the footage to
back up what we say. In cases where an accident was our fault, we’ve
settled the claim quicker instead of dragging it out through litigation.
DID YOU LOSE ANY DRIVERS?
No, the drivers began to recognize the benefits of the program.
16
17

A NATIONAL
INTERSTATE
SURVEY
Cameras:
We are big fans of camera technology, and there’s a story we just love
about a customer’s camera experience. This customer noticed that one
of their drivers had a habit of not coming to a complete stop at a stop
sign. When he was brought in for coaching, he said that he always
came to a complete stop, so his manager showed him the camera
footage. He was very surprised with what he saw. After coaching and
monitoring his behavior, his manager saw a 180 degree change. Put
one in the win column for cameras.
We know the value of this technology, but we’re always interested
to learn how our customers are using them, and what benefits they
are noticing in their businesses. So, we conducted a broad survey of
33 camera users over a measured period of time. Of those, 14 use
a managed service program, while 19 utilize a self-monitor program.
Here’s what they had to say:
What do you
think of them?
“Our drivers are speaking
with each other regarding
the benefits of in-cab
cameras.”
Camera
Advice
“Our drivers become more
aware of their behaviors
when they see themselves
on camera.”
Top 3
Reasons
FOR A COMPANY
THAT IS STILL
HESITANT ABOUT
ADOPTING AER
TECHNOLOGY?
76%
HAVE SEEN
THEIR DRIVERS’
ATTITUDES
CHANGE FOR THE
POSITIVE AFTER
INSTALLING
CAMERAS.
“At the time we
installed them,
we were the only
carrier in our area
with cameras.
It totally set us
apart from our
competition.”
97%
BELIEVE CAMERAS
PROVIDE A
POSITIVE ROI
TO INSTALL
CAMERAS:
1 Eyewitness to an accident/
driver exoneration
2 Increase company
safety culture
3 Coach/change driver behavior
➼
➼
➼
➼
➼
The money saved from one
recorded accident can pay for
the fleet-wide installation.
Cameras with coaching
can help reduce negative
behaviors and increase
positive behaviors.
Cameras often help us on
exonerating driver behavior
and we can use the footage
for accident investigation.
If you care about safety or
want to take it to the next
level, you need to get over
any fears about what drivers
may think about cameras.
If safety is your concern,
there is no other option.
18
19

Why
Isn’t
Video Alone
Adoption of video-based safety solutions is increasing rapidly across
the industry, and for good reason. According to a recent AAA study,
the use of video-based safety systems could prevent 63,000 crashes
and 17,733 injuries annually. 1
However, it’s not enough for fleets to simply install the hardware.
Though a dash cam might capture a collision, this action alone
doesn’t identify the contributing factors or prevent future collisions.
Today’s most advanced video-based safety and analytics solutions
are offered as a fully managed service, alleviating fleet managers
from the tedious tasks of reviewing video footage and analyzing
data, while offering a consistent and unbiased insight into risk. As
a result, fleets maximize the value of their video safety investment
and drivers benefit from a program they can trust.
Get More from Your Data
Choosing to implement a video-based safety program is a tremendous
step toward creating a safer and more efficient fleet. However, few
fleets have the internal resources to take on the cumbersome task of
analyzing the massive amounts of data produced by these systems
to decipher where the risk lies and what can be done to address it.
Additionally, the process of collecting, analyzing and acting on data
must be a standardized, repeatable process that drivers view as fair
and consistent. Without these elements, fleets will forego the true
value of a video-based program.
Unbiased Analysis
Another key benefit to choosing a managed service program is
the unbiased analysis of the data. Using third-party experts rather
than fleet managers ensures each driver and event is evaluated
consistently, creating a fair playing field and avoiding issues
that might stem from bias. With easy-to-use tools such as driver
scorecards, fleet managers can ensure continued improvement
among their drivers, ultimately increasing bottom-line results.
Improvement Can’t Occur Without Measurement
Drivers can have perfect driving records, but that doesn’t necessarily
mean they are driving safely—they may just be lucky. Eventually,
that luck will run out. Before it does, fleets should have an accurate
understanding of their risk.
A managed service affords a real-time stream of analyzed data that
accurately measures a driver’s exposure to risk. This measurement
is based on the triggering event, observed behaviors, risk exposure
metrics based on predictive algorithms and correlations to prior
collision data, thus painting a thorough picture. As a result,
fleet managers can quickly identify which drivers are more likely
to be involved in an incident and can allocate time for coaching
appropriately. In addition to supporting coaching programs,
accurately measuring drivers’ performance can serve as the
foundation of recognition programs.
The state-of-the art video-based safety program includes management
reports and key performance indicators (KPIs) that optimize the
program on an on-going basis, while underscoring areas of strength
and opportunities to improve.
More than the Bottom Line
Expert, consistent and non-biased review is essential to every videobased
program. Compared to taking on this task in-house, a managed
service is clearly the more efficient and cost-effective approach for
fleets. When investing in a video-based safety solution, fleets should
look for a partner that can share best practices, modify the program
to specific goals and priorities and support a growing company.
Most fleets report that by preventing just one collision, a managed
service program more than pays for itself. A managed service
will deliver measurable results that will pay off financially and
significantly improve safety.
Did you know National Interstate offers a camera program for
eligible customers? To find out more information, please contact
your Business Development Specialist.
About SmartDrive Systems
SmartDrive Systems is an industry innovator, delivering driving
performance solutions and transportation intelligence that
transforms fleet safety and operational efficiency. Their video
analysis, predictive analytics and personalized performance program
improves driving skills, lowers costs and provides immediate ROI.
Enough
The Hidden Costs of Self Review
Number of Vehicles 300
Number of Video Events (per vehicle/per month) 20
Review Time in Minutes (per video) 5
Total Time (hours/month) 500
Fully Burden Labor (per hour) $20
Without Managed Services
Additional Hidden Costs:
➼ Initial and recurring recruting costs
➼ Training
➼ Develop & maintain safety review rules
➼ Lost opportunity costs for lack of
reporting, analysis and benchmarking
Impact of this choice:
➼ Limited ROI
➼ Delayed action waiting days or weeks to
get reviewed video
➼ Driver acceptance of video
➼ Inconsistency of view breeds lack
of trust
➼ Ineffective coaching
2.9 Full-time equivalent | $33.33 per month/vehicle | $10,000 monthly
Source:
MELISSA PURCELL
1 AAA. (2017, September 21). Truck Safety Technology Can Prevent 63,000 Crashes Each Year. Retrieved from https://newsroom.aaa.
com/2017/09/truck-safety-technology-can-prevent-63000-crashes-year/
Sr. VP Marketing & Customer Success, SmartDrive ®
20
21

PAYING TOO MUCH
FOR SUPPLIES?
INTRODUCING
• Group Purchasing Network
• eCommerce Marketplace
Summer
party
Our annual Summer Party is pretty special around here, as it gives
us a chance to show appreciation to our employees, spend time with
family and friends and of course, kick off summer! Check out a few
highlights from the event below.
CROWNSOURCE creates buying power for the trucking,
moving and storage, and passenger transportation industries.
• CROWNSOURCE members gain access to CROWNCONNECT,
a world-class eCommerce Marketplace designed to
deliver total supply cost savings. This one-stop shopping
experience with management control functions provides
discounted prices with national suppliers and manufacturers
of products and services specifically tailored for the
transportation industry.
• CROWNSOURCE members save on everyday, “floor
to ceiling” non-rolling purchases – office supplies,
equipment, furniture, and technology; breakroom
supplies; shop supplies; janitorial and cleaning supplies;
safety supplies; facility supplies; and facility maintenance
services.
• In addition to non-rolling supplies, we custom contract
on rolling supplies, such as tires, fuel, oil, lubes, parts
and equipment.
NO ACTIVATION FEES
NO TECHNOLOGY FEES
NO MEMBERSHIP FEES
SAVE MONEY
IMMEDIATELY
MAKE CROWNSOURCE THE
TOP SOURCE FOR YOUR BOTTOM LINE.
22
For more information visit:
www.crownsourceinc.com/learnmore
23

Preparing for the Future
Hiring Top Talent
SANDRA RITLEY
2018 Ignition Class
Human Resources Supervisor
The war for talent is a well-documented one, especially in recent
years as companies are competing for the best talent now more than
ever. Across all industries, a candidate-driven market is challenging
recruiters. And, as baby boomers begin to retire, the gaps that exist
in the workforce will continue to grow. The insurance industry is not
immune to this challenge. By 2024, more than 29,000 insurance
jobs will be available in Ohio alone, according to the Ohio Insurance
Institute. National Interstate does not take these numbers lightly.
Instead, we seek to be a part of the solution by offering robust
internship and meaningful first-career opportunities through our
graduate development program, Ignition.
Summer Internship Program
Our summer internship program has been a driver for student
recruitment since 2012, and in that time, we have employed over
80 college students. During the 10-week program, interns have the
opportunity to work in a variety of departments including Claims, Data
Analytics, Finance, Information Services, Product, Risk Management,
Marketing and Underwriting. Targeted to college juniors and seniors,
the hope is to tie the classroom to real-world experience. Our interns
can expect a well-rounded opportunity to explore both insurance, as
well as National Interstate.
Over the course of the internship program, students gain exposure to
company leaders, have opportunities for professional development,
participate in social functions and gain a unique look at our business
and ever-changing industry. Additionally, interns are required to
participate in a group project and presentation on a business case
at the conclusion of the program. Business case topics have included
new product development, current market disruptors and integrating
multigenerational communication.
Most importantly, interns are reminded throughout the program
that they are interviewing for a potential full-time job and have the
opportunity to receive offers upon completion of their education.
While we hope students have an educational experience and leave
with more interest in exploring the insurance industry, we can’t deny
the excitement we feel when a student wants to join the National
Interstate family.
Ignition Program
In 2014, National Interstate launched the Ignition program, fed by some
of our strongest intern graduates. This dynamic, four-week program helps
prepare recent college graduates with more advanced insurance and
company-specific knowledge and career development opportunities. Over
the last four years, 53 new graduates have completed the Ignition program,
and after the 2018 program, another eight will join the alum list.
Overseeing the program curriculum is Jim Parks, VP and Chief
Underwriting Officer, whose expertise and understanding of our
underwriting practices lay a foundation for the participants. Michelle
Wiltgen, AVP and National Marketing Manager, has served as the
program mentor since inception. Michelle’s 27-year tenure, experience
and passion provides a unique perspective.
The Ignition curriculum is comprised of online learning through Kaplan
Learning Systems and in-person business sessions, education sessions,
professional development presentations and social activities. Our
subject matter experts present foundational business material related
to their business or product focus and lead education sessions to help
drive concepts provided by Kaplan home. Professional development
includes professional etiquette, communication and networking,
to name a few. To encourage relationship building and networking,
several social events occur throughout the program and include a corn
hole mixer, escape room challenge, Akron RubberDucks game, Whirly
Ball and a closing dinner.
A program component that truly exhibits our commitment to our
insureds is the customer collaboration experience. Ignition participants
have the opportunity to visit a local customer to understand their
business and put classroom learnings into real-world perspective. This
eye opening experience provides not only a unique perspective, but
also firsthand experience into what it means to form a customer –
insurance carrier partnership.
Each year, National Interstate evaluates our program successes and
looks for areas of improvement. Feedback has been a powerful tool as
we continue to strengthen both programs and understand the needs
of the future. Every company measures success differently, and at
National Interstate we focus on hiring meaningful talent who develop
into future insurance leaders. In fact, we are proud that many of our
Ignition participants reach their first promotion within eighteen months
and most program graduates are on second or third promotions.
National Interstate welcomes students and new graduates, as they
are the future of our workforce. If you would like more information on
our internship and Ignition programs, please contact Sandra Ritley at
Sandra.Ritley@natl.com.
24
25

Insurance Built Around Faith
GOOD FAITH
matter whether you think George Michael or Limp Bizkit
No said it best, we can all agree: “Got to have faith, gotta
have faith.”
It forms the basis of trust upon which all mutually beneficial
relationships are built. The insurance context is no exception. In fact,
good faith and fair dealing are the hallmarks of a strong business
and insurance relationship.
Even if you have heard George Michael’s 1987 original “Faith” or
the 1997 Limp Bizkit cover, chances are you probably have not
heard the Latin phrase uberrimae fidei (yoo-ber--may fi-dee). Literally
translated, it means “most abundant faith” or “utmost good faith.”
Black’s Law Dictionary (10th Ed. 2014).
The doctrine of utmost good faith in commercial transactions has
been recognized since antiquity, including endorsement by the
Greeks and Romans. Arnaldo Biscardi, “On Aequitas and Epieikeia,”
Aequitas and Equity: Equity in Civil Law and Mixed Jurisdictions, ed.
Alfredo Mordechai Rabello (Jerusalem: Hamaccabi Press, 1997), 2.
In more modern times, the doctrine first appeared in the insurance
context in England, where the Chief Justice of the King’s Bench,
Lord Mansfield, held that neither the insured nor the insurer may
exploit the other by failing to disclose relevant facts to draw the
other into a bargain. Carter v. Boehm, 97 E.R. 1162, 1164 (1766).
The purpose of the doctrine, as explained by Lord Mansfield, is to
encourage good faith and prevent fraud. Id.
The doctrine navigated the Atlantic Ocean and found support in the
U.S. Supreme Court in the 1828 case of McLanahan v. Universal Ins.
Co., 26 U.S. 170, at 185, which the Supreme Court reinforced 100
years later in Stipcich v. Metropolitan Life Ins. Co., 277 U.S. 311,
316 (1928). In both cases, the Supreme Court cited approvingly of
the doctrine of utmost good faith in insurance contracts, holding
that the principles governing insurance are those of an enlightened
moral policy. Since then, courts throughout the U.S. have affirmed
the doctrine. Shipley v. Arkansas Blue Cross & Blue Shield, 333 F.3d
898, 903 (8th Cir. 2003) (citations omitted).
Some states have modified the duty of utmost good faith to demand
proof of fraudulent intent and misrepresentation of a material
fact before an insurer may assert rights against an insured. Other
states require a material misrepresentation but disregard the
insured’s intent in failing to disclose a material fact. However, the
consequence is often the same: the insurer may rescind the policy
and avoid payment of claims when the insured’s failure to provide
material information had an impact on the nature of the risk.
The foundation of the underwriting process requires an insured
to provide a prospective insurer all facts relevant to the proposed
risk. In commercial transportation property and casualty insurance,
this often requires accurate details of an insured’s assets, revenue
sources, employee count, the number and location of the insured’s
offices, branches, or terminals, miles and routes driven by an
insured’s fleet, management experience and prior claims history,
among other information. When an insured suppresses information
that would have disclosed a different kind of risk than the one
submitted through concealed facts, the insurer may argue that
the insured fraudulently induced it to issue an insurance policy,
affording the insurer the right to void the policy. A leading insurance
treatise asserts that because each party to the insurance contract
is at the mercy of the other, a breach of the special duty of utmost
good faith warrants punishment and deterrence. Couch on Ins. §
198:12 (3d ed. 2001).
Because the consequences of an insured’s failure to abide by the
duty of good faith can be extreme, it is important for applicants
to understand the duty of good faith. Insureds should work closely
with their insurance broker and the underwriter to seek clarification
when a question arises concerning the extent of the disclosures
required or information requested by the underwriter. An open
dialogue and clarification of questions helps avoid situations where
facts are uncovered at the time of loss indicating an insured omitted
important information during the underwriting process.
When parties to an insurance contract are well meaning and
demonstrate good faith by recognizing the special relationship and
obligations owed to one another, the insured obtains the benefits
of the coverage it seeks to protect its assets, reputation and more.
Without good faith, an insured may be exposed to an uninsured, and
unexpected, loss.
The next time you complete an insurance application, it might do
some good to pull out that old cassette tape or CD, turn up the
volume, and play your favorite version of “Faith.” I can just hear
Fred Durst’s earsplitting voice in risk managers’ and brokers’ offices
across the country.
THOMAS J. KING
Corporate Attorney
26
27

How to REPORT A CLAIM
As specialists in commercial transportation insurance, National
Interstate claim professionals aggressively adjust hundreds of millions
of dollars in claims each year. On every claim, for every customer, we
work tirelessly to achieve fair, equitable and cost-effective resolutions.
How to REPORT A CLAIM
800-929-0870 24/7
Reminder:
Catastrophic claims must be
reported immediately and by phone.
newclaims@natl.com
From a minor fender-bender to a catastrophic loss, our experts will
provide a superior level of service. Our teams are organized by specialty
and severity to ensure that your claim is handled by a professional who
understands your industry, no matter the complexity. We understand
claims can be stressful, and our goal is to make the process as smooth
as possible.
We are here when you need us, 24/7, 365 days a year.
FOUR STEPS TO A STRESS-FREE CLAIM EXPERIENCE
1. Report the claim immediately!
2. Gather as much information as possible before our claims
professional contacts you.
3. Communicate anything and everything relevant to the claim to
our claims professional.
4. Relax. We’ll take it from here.
330-659-8909