Breaking down the barriers part one: Improving the quality of fleet data
In the first part of a three-part blog series, our MD of Motor, Craig discusses the challenge faced by fleet operators and insurers associated with the accuracy, volume and disparity of data.
Part one: Improving the quality of fleet data
The commercial motor industry has been using technology to track fleet performance for years. Fleet Managers use data from telematics systems for day-to-day oversight and to develop smarter strategies around driver safety, vehicle maintenance and route optimisation. By incorporating data-led strategies, Fleet Managers can significantly improve their risk profile.
This should be music to insurer’s ears, right? However, despite their investment in technology, Fleet Managers have not seen a great deal of change to their insurance premiums for three primary reasons:
1. False positive alerts, sheer volume and disparity of the data produced
by various telematics providers;
2. The silos across the insurance industry
3. The outdated underwriting models being used by the insurance industry
In most cases, these three factors have created largely impenetrable barriers between stakeholders in the value chain. This is primarily between Fleet Managers and their telematics providers to insurers, MGAs, brokers and reinsurers. The good news is that significant improvements in onboard fleet technology and the creation of device agnostic data platforms are beginning to break down these barriers.
In this three-part blog series, we’ll explain each of these challenges and how they can be overcome using alternative approaches and new technology.
Historically, many telematics and video systems have generated too many alerts to be manageable. Collision alerts caused by insignificant events, such as vehicles travelling over speed bumps or hitting a pothole too quickly for example, have been a regular occurrence. These false positive alerts continually require Fleet Operators to manually review data and video footage. With margins tight, operators have had no choice but to try and prioritise, normally by severity. So, while a great deal of information is available to optimise fleet insurance, a lot of it remains unused because fleet operators don't have the resources to process it.
Not only is the data often inaccurate, it is also generated by a multitude of disparate systems. Insurers are also being asked to work with data from thousands of telematics and video providers globally. As a result, the data output for insurers has generally been excel spreadsheets as, like fleet operators, they don't have the time or resources to work through it all. This means the data from telematics and video devices is not being used to its full potential.
The good news is that all these issues are easily solved. Vast improvements in available on board telematics and video technology have led to much more accurate data and the reduction of false alerts. Smarter, device agnostic software has also been developed to help improve operational efficiency. This means the software can analyse data no matter which device or system generates it, providing insight that enables decision makers to act immediately. These advancements make it possible for insurers to get visibility of their clients’ fleet data and use it to reward the fleet operator for investing in technology.
Accurate fleet data is now entirely possible but is only one of the challenges facing fleet organisations striving to get the most out of their insurance. Tune in to part two in the series when we will discuss why engrained silos in the insurance industry are driving inefficient practices and how these can be overcome. In the final part we’ll discuss why we believe the existing underwriting models to be outdated and how technology can help them assess risk far more accurately.
Concirrus is the creator of Quest Motor and Quest Fleet, which combines multiple data sources in one, simple, easy to use application and analyses them to discover new insights into risk. A technology agnostic platform, Quest pulls together dynamic, real-time data from vehicle sensors, telematics, video and other relevant datasets to deliver:
- A clear understanding of driver behaviour and risk
- Proactive risk management functionality
- Automated collision reports within minutes to assist with FNOL
- New revenue opportunities
Quest enables a transparent relationship between fleet operators and their insurers, as well as reinsurers, retrocessionaires and capital providers, creating value for all. Find out more about Quest Motor and Quest Fleet.
Read about Concirrus’ partnership with SureCam, the market leader in connected camera technology.