Leveraging Technology to Reduce Commercial Driving Risks and Coverage Costs

According to GlobalData, the UK commercial motor insurance market is expected to experience a compound annual growth rate of 4% between 2022 and 2027. Soaring premiums caused by rising claims costs are fueling this increase in gross written premium.

For fleet operators, these premium increases threaten budgets and reduce profitability. Brokers can add value by helping their clients control both their claims and their costs. There are four main types of technology your business clients should be aware of: driver monitoring systems, forward-facing cameras, vehicle monitoring systems, and anti-collision systems.

1. Driver Monitoring Systems

Drivers who speed, brake too hard, accelerate too fast, or nod off at the wheel may cause crashes. Although employers may have policies against risky driving practices, they may not be enough to prevent drivers from developing bad habits. The only way to be completely certain that drivers are operating safely is to monitor them.

Modern telematics systems make this possible. These systems monitor vehicle usage and can even analyze the driver for signs of fatigue, which enables businesses to identify and correct dangerous behaviors before a crash occurs. Unfortunately, some businesses have yet to adopt this impressive technology. A UK survey from Fleet200 Strategy Network found that 73% of LCV fleets and 52% of car fleets monitor their drivers’ behavior.

2. Forward-Facing Cameras

Whereas in-cab cameras monitor drivers, forward-facing cameras (or dashcams) monitor road conditions and other drivers. The information forward-facing cameras collect can help exonerate a driver after a crash, thereby helping to depend the company from liability claims.

Imagine your driver stops at a light behind another car. The other car suddenly backs up and hits your company’s vehicle. The driver of the other vehicle claims your driver suddenly accelerated, which resulted in a rear-ending. Another driver acts as a witness to confirm this is the correct version of events. Your driver is the victim of a staged accident, but without dashcam footage, it may be hard to prove.
Dashcam footage can also show when your drivers are cut off or are the victims of road rage.

3. Vehicle Monitoring Systems

Faulty brakes, worn tyres, and other vehicle maintenance issues may contribute to crashes. In fact, according to the Federal Motor Carrier Safety Administration, vehicles targeted for interventions due to vehicle maintenance had a 65% greater risk of a future crash compared to the U.S. average.

Telematics systems help fleet operators stay on top of maintenance by providing real-time data on vehicle performance and maintenance issues. Although this is an investment, it helps fleets save in the long run by preventing crashes and related insurance rate increases. These vehicle monitoring systems also help fleets avoid downtime and reduce overall maintenance costs by fixing issues before they cause additional damage.

4. Anti-Collision Technology

Collision-avoidance technology has come a long way in recent years. According to the Insurance Institute for Highway Safety, forward collision warning and automatic emergency braking systems prevent or mitigate many crashes involving large trucks. Forward collision warning systems are associated with a 22% decrease in police-reportable crashes, whereas automatic emergency braking systems are associated with a 12% decrease.

By investing in new vehicles with advanced safety features, companies can save lives while controlling their claims and insurance costs.

Are Your Clients Eligible for a Discount?

Insurers may offer discounted rates for certain safety features. If your clients are already using advanced safety features, make sure they’re receiving all the discounts they qualify for and determine whether a different insurer might offer larger discounts. If your clients are not using advanced safety features yet, the possibility of insurance discounts may be the incentive they need to make the investment.

Do you need help finding commercial motor insurance solutions for your clients? Costero Brokers can help. Learn more.