What should be the focus to effectively reduce reserves?

Focusing on underwriting is crucial for effectively reducing reserves because it directly impacts the assessment and management of risk associated with policyholders. Underwriting involves evaluating the risk of insuring a client and determining the appropriate premiums. By improving the underwriting process, an organization can better assess the likelihood of claims arising, ensuring that reserves are appropriately aligned with the actual risks presented by the portfolio.

When underwriting is emphasized, it leads to more accurate pricing of policies, which can help lower the number of unexpected claims. This accuracy allows a company to manage its reserves more effectively, as it can better predict the future liabilities, thus potentially reducing the amount set aside for reserves.

In contrast, options that focus on maximizing revenue, minimizing service interactions, or increasing fleet size do not directly contribute to the assessment and management of risk as effectively as a strong emphasis on underwriting. While these strategies may provide benefits in other areas, they do not address the fundamental need to accurately evaluate risk, which is essential in controlling reserves.