Markel combines specialized focus
and experience into successful package
By Samuel Schiff
Mark J. Ram is president and CEO of Markel Insurance Company of Canada.
A cobbler should not judge above his last.
Apelles, fl. 325 B.C.
That quote from Apelles, a fourth-century B.C. Greek painter, is as valid today as when it was first uttered. In the intervening years it has been altered a bit and now is cited as "Shoemaker stick to your last." But nothing has been lost in its meaning in the intervening years, and sticking successfully to one's last is indeed a worthy achievement and one that deserves congratulations.
So kudos go to Markel Insurance Company of Canada, which is celebrating its 50th year of operation. And while Markel's business is not insuring shoemakers, it has stuck to its last by insuring the Canadian trucking industry for half a century. In that period it has become the country's leading trucking insurance company.
In its half century of operations, Markel has seen numerous changes in both the trucking industry and the insurance industry. One of the most--if not the most--significant changes for the company was its purchase in 1985 by Fairfax Financial. "Not only is Fairfax one of our country's top financial firms, it also ranks high worldwide, with over $6 billion in annual revenue," says Mark J. Ram, president and CEO of Markel. "This helps give us the financial strength to survive and prosper in a very tough business." The backing that Fairfax provides Markel is vital and has enabled it to outlive a great many of its one-time competitors.
"Over the past 50 years," says Ram, "the trucking industry has seen a lot of companies come and go. Most start writing coverage because they are attracted by the large average premiums for this kind of coverage. However, they don't understand the true cost of doing business. Also, they lack the specialized focus and experience necessary to last in good times and bad times as well as the knowledge to help truckers maintain and grow their business.
"Unfortunately," he continues, "when they realize how much money they're losing, they frequently cease writing business, thus forcing the truck operator to scramble for coverage, and leaving the industry holding the proverbial bag."
Ram is quick to admit that trucking isn't the easiest type of insurance to write. It is a line whose fortunes depend primarily on the economies in both Canada and to a large extent the United States, where a great deal of the company's business also takes place. The shifting fortunes of the insurer thus are capable of wide swings, so he eschews making any bold predictions about the future.
However, Ram offers some insights into the overall market. He estimates that all Canadian long-haul trucking premiums run between $300 million and $400 million annually in Canadian dollars, of which Markel's stake has grown to some $100 million in premium volume, accounting for about one-fourth of the Canadian market. "Our prospects always depend on future business, which has historically had its ups and downs. That's one reason we don't sit around and try to forecast future business; at the same time, we've always stayed the course and will continue to do so in the future."
Markel's business is insuring long-haul truckers, and in doing so it operates in all of the nation's provinces, with offices in Toronto, its headquarters, as well as Montreal, Edmonton and New Brunswick together with a claims office in Calgary and a Transportation Training school in Guelph. All the customers (fleet and non-fleet owners) are Canadian companies, but a few also operate in the United States, primarily through subsidiaries of their Canadian companies.
"The North American Free Trade Agreement has had a significant and positive impact on our business," Ram says. "It has opened up the borders of both countries and more than ever has allowed the flow of goods to move from one country to the other." Markel insures Canadian trucks driving throughout Canada and the U.S., thanks to its expertise and long-term commitment to the industry. In addition to the NAFTA agreement, Canadian truckers have also been helped by the steady improvements seen in the nation's highway system, which expanded truck trade routes into virtually all parts of the country.
The long-term commitment and 50-plus years of experience cited by Ram, work well for both the insurer and the insured. "Our staff understands trucking and truck fleet owners--we both speak the same language, and that language means getting problems and claims solved quickly and getting the vehicles on the road as soon as possible," says Ram.
He goes on to stress that: "We are involved with our clients 24 hours a day, seven days a week. Our staff operates with cell phones and laptop computers. In addition, we see clients many times a year to make sure that they have no problems. Thus the client knows we are there to help in both good and bad times. Our main purpose is to enable them to run the best possible trucking operation."
That effort has proven successful and Markel currently works with about 2,000 clients of all sizes--from one truck to fleets of more than 1,000. "Most important," says Ram, "is that each one gets the same service, a factor that helps account for a 90% renewal rate; and while there are always bumps in the road, we don't lose many customers to our competition. We believe that each and every relationship is both personal and unique, and we take great pride in providing our clients with tailor-made services that will make a meaningful difference in their operations."
Markel deals with insurance brokers and agents all across Canada--ranging from those who specialize in handling just trucking to the small, local broker who may have only a single truck owner in the community. "Very often these small brokers know their area and their clients, so they are important to us," says Ram. "Size does not matter to us; we'll work with all of them and provide each of them the same kind of service."
While the largest part of the company's business is insuring trucks, Markel also operates a Safety and Training Services department, begun in 1988. This department is responsible for the operation of Markel's Transportation Training School, which was also established in 1988, with the main training facility located in Guelph, Ontario. It is made up of two training divisions--one for aspiring truck drivers and the other for existing trucking firms to whom Markel offers a wide range of corporate training and value-added services.
The transport driver training division is tailored for those interested in a career as a trucker. It offers three separate certificate programs:
* Tractor-Trailer Diploma -- Established in 1988, the program is registered and approved by the Ontario Ministry of Training, Colleges and Universities under the Private Vocational Schools Act. On the company's three-acre training facility, it combines modern classrooms, a paved training yard and an indoor laboratory for practical mechanical demonstrations.
* Straight Truck Certificate -- A program designed to provide drivers with the necessary knowledge and skills needed to operate a straight truck. The focus is on vehicle inspection, air brake systems and defensive driving.
* Air Brake Certificate -- Upon successful completion of this course, the participant will receive an Ontario Safety League Air Brake Certificate. Also, in the past, Markel has helped write the Ontario government's Air Brake Manual as a result of its knowledge in this area.
In addition, Markel provides customized training packages for a driver's specific needs. "The Training School is staffed by full-time professional instructors (most of whom come directly from the trucking industry), has a 90% plus graduation satisfaction rating, provides career placement guidance to the successful graduate, offers 24-hour, 1-800 on-road assistance to graduates and offers top job opportunities," says Ram.
The Canada-wide corporate training division is pegged to meet the entire spectrum of a trucking company's needs--ranging from individual driver training to professional safety and consulting services. The program and companion seminars cover such subjects as the training of drivers, safety managers and trucking executives, as well as driver safety meetings and trainer workshops. "In addition," adds Ram, "we offer a number of value-added products and services, including consultation, trend analysis, safety management systems and French/English bilingual services." Ram says that no Canadian insurer operates a transportation training school, and it is one of the few schools owned by an insurer anywhere in the United States or even the world.
In a value-added effort to its customers, Markel's Business Development Department continues to upgrade its Markel Advantage Software, designed to help a trucker's business grow. The software includes such key features as Driver Profile and new Electronic Accident Register modules to help trucking companies maintain complete driver files, while at the same time tracking all accidents and losses. The new software also features electronic accident register, maintenance of driver abstracts, tracking of renewal dates, and provides information to enable the trucker to be in compliance with Canadian and U.S. regulations.
"We believe this user-friendly software will enable trucking companies to better manage their operations, Ram says, "and we hope to have three or four additional software programs available by 2002."
Markel's commitment to insuring trucking companies extends beyond just its clients and includes the entire scope of the business. "We are members of all the industry trade associations, deeply involved with the government in its safety efforts as well as acting as a positive voice in community activities," notes Ram. "We want to show the positive side of the trucking industry." Community involvement includes the Hospital For Sick Children in Toronto as well as other children's causes, and establishing a fellowship for on-going research on childhood leukemia.
Writing insurance is a difficult industry in the best of times and, in countries that include thousands of miles of desolate country roads and highways, is not the easiest way to make a dollar, whether Canadian or U.S. But thanks to a half century of sticking to the business it knows best, Markel has expanded and prospered. And although Ram is not given to making predictions, he does suggest that since the company has an excellent knowledge of United States trucking operations and the financial backing of Fairfax Financial, possible entry into the American trucking insurance market cannot be discounted sometime in the future. *
"Our staff understands trucking and truck fleet owners--we both speak the same language ..."
--Mark J. Ram
For more information:
Web site: www.markel.ca