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Selling Commercial Insurance Telematics to Fleet Customers

 

Decrease the Number of Insurance Claims While Your Commercial Lines Customers Enjoy the Benefits of a Powerful Fleet Management Solution

Commercial Auto Telematics Insurance Customers

The advantages of commercial insurance telematics do not apply to only large-scale fleet operations. Notable advantages also carry over to many small- to mid-sized organizations that use vehicles in their daily business operations. This market can include food service delivery, vehicles used by construction workers, utility company trucks, individual home maintenance vans, pest control companies, auto towing services, lawn care services, and virtually any scenario that involves vehicle use as a part of the business. 

The primary sales points to make in the commercial sector include the following:

  • Emphasize the value of real-time, in-depth data analysis, explaining how intelligence around driving behavior goes deeper into a driver’s actions to get a clear picture of risk behavior, making it possible to selectively identify drivers likely to cause accidents or engage in dangerous behavior (as well as possibly clearing drivers of violations they did not commit).
  • Mention the additional benefits that apply to fleet operations from telematics tracking, including improvements in vehicle logistics, timely maintenance, efficient fuel use, and better delivery scheduling.
  • Explain how premium reductions go hand-in-hand with thorough monitoring, particularly in the area of risky driver behaviors that are strong predictors of future crash occurrences.
  • Identify the ROI benefits clearly, using metrics that apply directly to the size and nature of the business.


Unlike the situation with personal lines insurance telematics and UBI, professional drivers aren’t going to be influenced by insurance premium discounts; they will, however, want to ensure that their standing with their employer is not negatively impacted. And, of course, the ultimate goal is to create an atmosphere throughout the entire company where safety is valued and all staff members follow best practices for vehicle operations.

“The rise in usage-based insurance, digital distribution channels, and other disruptors are shaking up the industry. Widespread data availability and advanced analytical techniques are enabling new market entrants to absorb risk that was once the exclusive territory of insurers. Larger and more efficient capital providers entering the industry are siphoning off premiums that ordinarily flowed to insurers. To stay relevant, traditional insurers need to shed their conservative orientation and cultivate a culture of innovation.” - EY¹

With telematics, commercial insurers gain greater value from data-driven insights into underwriting factors, help identify and implement strategies for mitigating risk, and establish the groundwork for more efficient loss prevention programs.

From the insurer’s perspective, the availability of richer, more complete information on vehicles and drivers makes it possible to develop custom policies and programs for commercial fleets. Safe drivers and responsible operations can be rewarded. Risky drivers can be retrained or, if not responsive to training, removed from behind the wheel—before they cause an incident or loss. Risk managers have a depth of data to draw on to help develop policies and set pricing.

In this lively period of transformative change, insurance companies have a tremendous opportunity to go beyond making cautious incremental changes to existing legacy products. Instead, adopting the latest digital solutions geared to customer-centric innovation—enabled by data-driven insights—can re-energize programs, fulfill demanding customer requirements, and establish a stable road map to continuing market success.

 

 

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¹ “2016 US property-casualty insurance outlook.” EY. ’15. http://www.ey.com/Publication/vwLUAssets/ey-2016-us-property-casualty-insuranceoutlook/%24FILE/ey-2016-us-property-casualty-insurance-outlook.pdf