Leveraging telematics data in fleet motor insurance
Modern technology, such as telematics, has already transformed the way fleet insurance companies do business. In fact, the range of telematics solutions is vast. So vast that it can be challenging for insurance companies to standardize driving data and really reap the benefits of connected data.
Now, as DKG in Australia launches Fuse Fleet, a new behavior-based insurance offer, we look at how it’s possible for insurance companies to harmonize data across telematics solutions to understand driver risk levels for a whole portfolio. Even better, how the harmonized data provides opportunities for enhanced driver risk management and fairer fleet insurance premiums.
Motor insurers have a wealth of driving data
Fleets, telematics companies and insurance companies already utilize huge volumes of data. But, are the capabilities of data being fully explored? The explosion of connected data has the power to dramatically improve driver risk management and facilitate precision insurance pricing. However, at the fleet insurance level, it can prove a data management nightmare to attempt to compare data from different solution providers.
Converting GPS data from multiple sources into uniform, individual driver scores provides a transformative solution in fleet insurance. If an insurance partner can compare risk levels across a whole customer base, it becomes easy to offer fairer insurance premiums. And, as an added benefit, it enables the insurance partner to provide complete transparency across a fleet’s safety, risk and claims.
How behavior-based insurance benefits telematics companies
With so many telematics solutions on the market, it’s important for telematics service providers to stay at the forefront of innovation in driver risk management. By working with an insurance partner that provides behavior-based insurance, telematics companies can enhance their customer value proposition by demonstrating insurance savings. This, of course, is likely to improve customer retention and engagement.
The new Fuse Fleet insurance offer is a great example of this. DKG make it easy for the end fleet customer to share their driving data via a simple API connection. And, as a result of converting GPS data into crash probability insights, DKG’s telematics partners can provide their customers with a new risk forecasting landscape.
Strengthening the fleet focus on safety
Safety is a primary concern for fleet risk managers, for good reason. Globally, 1.3 million people are killed every year on the roads, and up to 50 million more are injured. In many parts of the world, including Australia where Fuse Fleet has been launched, workplace health and safety laws require people running businesses to ensure the health and safety of those driving for work.
Technology is increasingly being used by fleet operators to manage safety, often as part of their telematics solution. Fuse Fleet is taking this approach further by performing real-time analysis of driving data to help promote and strengthen a safe driving culture. By uncovering new risk intelligence, including a Crash Probability Score for every driver, Fuse Fleet can support risk mitigation efforts, helping to reduce road injuries and loss ratios.
Artificial intelligence enables fair pricing in fleet insurance
It can be difficult for insurance companies to accurately price and determine driver risk level using multiple sources of connected data, but it doesn’t have to be. By converting GPS data into crash probability, an insurance company can identify losses before they happen. Combined with dynamic pricing and risk remediation efforts, this is a powerful, proactive approach to improve loss ratios.
This type of insurer-telematics-fleet relationship is win-win. Behavior-based insurance combined with recommendations to improve driver safety will certainly incentivize safer driving. This method of precision pricing drives better profitability for all involved.
It’s easy to get started with a behavior-based insurance offer
All that’s needed to uncover new layers of risk intelligence for a behavior-based based insurance solution is GPS data. At Greater Than, our pattern AI can convert data from a dashcam, connected car, smartphone solution or other device via a simple API connection. It uses machine learning to convert the data into a Crash Probability Score, resulting in harmonized, comparable data.
Because our Crash Probability Score identifies crash likelihood as well as associated cost, it’s easy for insurers to accurately price premiums and uncover hidden risk insights from their existing data.
Contact Greater Than or book a meeting with me to learn how our AI can help your company optimize insurance profitability.
