Evaluating a trucking risk today remains centered on safety programs, accident investigation, vehicle maintenance, driver qualifications and, of course, loss history. One area that is becoming more important to the trucking industry and may provide greater insight into risk acceptability is the use and effectiveness of Fleet Telematics Technology.
Fleet Telematics is a broad term that encompasses the collection and exchange of information/data from a vehicle to a central repository. It includes vehicle technologies, road transportation, road safety, electrical engineering (sensors, wireless communication), and computer science (internet, media, etc.). The use of telematics is intended to improve safety of both the driver and others on the road. To be an effective tool, one that is not be tampered with, it is important for employees to understand that monitoring is not intended as a trigger for punitive action.
From an underwriting perspective, there are still a number of implementation questions yet to be answered, such as how information will be analyzed to provide actionable insight and what regulatory restrictions may come in to play. As telematics programs mature, insurers will eventually look to leverage data to price exposures more effectively. In the interim, fleet operators that provide heightened details of their use of telematics to improve their performance in minimizing risks will likely benefit from more favorable and consistent rates.