WTF!* Insurance Claims profile not what you hoped?

Why telematics fail
WTF!* – Leadership
19th November 2018
Why telematics fail
WTF!* – Strategy – Do you have one?
3rd December 2018

WTF!* Insurance Claims profile not what you hoped?

Why telematics fail

Should you be surprised as you have ignored the data!

We know that one of the things that sold you on investing in telematics was hearing about the insurance discounts. You’ll have been told that you could save an average of 15% off your insurance bill across the whole fleet.  Where do I sign?

DOWNLOAD YOUR WTF!* GUIDE NOW

Now, we don’t know what your experience of insurers is. Maybe you think that they just tick the box to say that you’ve invested in shiny new telematics and automatically add the discount.  Sadly, the insurers that we know don’t work that way.  They like to see actual results.  You might get a bit of credit for investing in the first place, but as the months and years tick by they’ll expect to see some benefit.  If your claims profile isn’t improving despite using telematics, alarm bells will ring.

So let’s look at the background.  Which insurance cycle do you prefer?

  • Better driving behaviour vs poor driving behaviour
  • Less speeding vs endemic speeding
  • Small number of accidents vs increasing accident count
  • Low/No insurance claims vs High Claims
  • Reduced Insurance Premium vs Significant increase in Insurance Premiums

When it comes to renewal time your insurers will start to look at any current claims along with the data on road performance and driver behaviour.  This is not rocket science!  A leading insurer said, “We are actively looking at our clients to manage road risk.  The more responsible clients have strategies in place to manage driver behaviour which has a positive effect on Insurance Premiums.”

You might not be able to control the number of accidents, but your telematics can help you to identify the potential causes.  If you’ve found that excessive speed was a factor in a number of accidents, you can monitor it. Why are your drivers going too fast? Are they speeding because they’ve been stuck in a traffic jam? Perhaps they’re at risk of missing delivery deadlines because they don’t have an optimised route?  The data won’t tell you the root cause but it will point you in the right direction.  Then you can take the lead in looking at the underlying issues.

Of course, you might be focusing on your oppressive insurance bill and we wouldn’t blame you. However, identifying the causes of accidents can have an added benefit.  Are your drivers having accidents because they’ve fallen into bad habits or could they be suffering from stress? A stressed or overtired driver will make mistakes that could lead to more accidents and that’s the last thing you need.  Using your telematics data properly allows you to identify a problem then get to the cause.  When that becomes part of your culture you can reduce the number of accidents and resulting claims. Then you’ll really see your insurance premiums start to come down.

Download your free WTF!* guide now to find out how to get this in check today.

 

Paul Cochrane
Paul is the Managing Director of Vtec Solutions. He has expertise in vehicle tracking and fleet management, spanning over a decade and prides himself in understanding business fleet challenges and ensuring fleets are running at their optimum.