Zurich: How to profit from insurance telematics in the fleet space
The article is sent in association with the upcoming Insurance Telematics Europe 2012
At the conference Zurich will explain how monitoring driver behaviour is fundamental to reducing costs and improving safety for fleets, and how telematics and insurance companies can incorporate this into their business strategy to profit.
Click on the blue button on the right to see who will be speaking on this topic at Insurance Telematics Europe 2012 >>>A leading fleet insurer has reported that a customer’s trial of telematics resulted in it slashing its incident rate for own damage claims by two-thirds (66.4%).
It also recorded a 59% reduction in the cost per vehicle for these claims, while its figures for third party claims were even more impressive. It reported a 72.2% reduction in the annual incident rate and an 83.1% reduction in the cost per vehicle for these claims.
The figures from Zurich are based on an unnamed fleet, which compared 250 vehicles fitted with driver behaviour telematics to a control group of more than 1,200 vehicles.
Andy Price, practice leader, motor fleet at Zurich Risk Engineering, said: “If the aspiration of an organisation running a motor fleet is to reduce its overall cost of risk, as well as the frictional costs associated with this, then in-vehicle driver behaviour technology is a fundamental component that will assist those responsible for managing motor fleets in realising their goals.”
It also recorded a 59% reduction in the cost per vehicle for these claims, while its figures for third party claims were even more impressive.
Five years from now most UK insurers will have a telematics solution on the market, though these solutions will work in different ways to assess driving risk, according to Walters’ forecasts.
Zurich and Aviva have already joined the fray, and in recent weeks TomTom has made a move into the insurance market by teaming up with insurance broker Motaquote to launch Fair Pay Insurance. It was quickly followed by AA Insurance, which launched a ‘pay how you drive’ product called AA Drivesafe.
Zurich launched its Fleet Intelligence aims product in the UK, in 2010, to help companies improve their fleet operations and manage their risk. The proposition goes beyond the industry norm ‘pay-as-you-drive’ telematics products as Zurich works in partnership with the customer.
It combines vehicle telematics technology with reporting and driver development tools to help fleet operators improve safety, lessen operating costs and reduce environmental impact through lessened fuel consumption and vehicle wear and tear.
On-board telematics technology allows commercial fleet operators to monitor and assess driver behaviour at the same time as gathering raw data.
The equipment tracks and measures vehicle and driver behaviour on a continuous basis and the fleet operator receives the resulting data via a web portal. This data provides companies with helpful insights that could be used for targeted driver training and coaching.
Price said: “When an employee is making a work-related journey, this is usually unsupervised, so by implementing driver behaviour telematics employees can understand when they are driving inappropriately, through the in-vehicle feedback mechanisms.
The need to manage road risks:
“Managers can get insights on how employees are driving, allowing them to put the appropriate management and/or driver-focused interventions in place.”
But Price recognises that before convincing any organisation that the use of driver behaviour telematics is of value to them, “they must first have an appetite to want to effectively manage work-related road risks”, he said.
Hear more on Fleet Services at Insurance Telematics Europe 2012
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Zurich will be speaking at the Insurance Telematics Europe 2012 forum, to learn more on other speakers, click on the blue button on the right. >>>
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