Digital information is playing an ever increasing role when it comes to every aspect of fleet management whether it be vehicle tracking, improving driver performance and reducing accidents, predicting maintenance through to improving claims management. From digital CCTV to GPS locations and telematics tracking, they act as a key tool for fleet managers seeking to deliver value, manage risk and ensure technology is on your side in any argument.
It is said in the insurance industry that “(s)he with the best data, wins.” That has never been truer in the digital and mobile era as managing fleets comes with an increasing range of risks. Telematics provides fleet managers with the knowledge to handle these issues and deliver business results.
Telematics monitor vehicle health, driver performance and can be used with insurers to support the best driving standards, and reduce risk on the roads. As all businesses become digital, fleet managers need to deliver the best possible benefits to the firm and support their drivers through strong use of data gathering. Telematics can support the business through driver coaching, improving engagement across the team and helping reduce accidents.
Telematics is not a new term, but the 2020s version uses the latest in miniaturisation, tracking and smart software using AI to monitor and manage fleets and drivers. Having dashboard-level monitoring helps the firm respond faster to incidents and be aware of trends, both positive and negative among their fleets.
At the strategic level, this could help a business decide when to switch from petrol fleets to electric in areas where the costs are justified. At the tactical level, it can identify good and bad drivers, and help the fleet’s insurers provide balanced coverage based on what the vehicles face out among traffic, also known as telematics insurance.
Telematics leverages cloud software, sat-nav, RFID, in-vehicle monitoring and driver-health/awareness technology. Each vehicle in a fleet becomes a live source of data to track movement, delivery or journey status and driver behaviour.
The huge amount of data is hard to process and draw insights from through traditional number crunching. However more recently AI machine learning systems can support the business by providing key data to reduce operational costs, with insurers sharing insights that might instantly impact rates or claims. These changes are not reliant on insurance renewals, they are in-policy changes, meaning financial benefits are reaped immediately.
While some might view it as snooping, telematics is inevitable to all businesses, to help encourage safer driving standards and to motivate workers to better, not necessarily faster, performance. Across any business, many teams are measured through digital metrics, which are used to drive employee engagement. The same is happening for drivers through telematics, keeping them in touch with their office-based counterparts.
Additional benefits to the business include fleet security, especially as the crime rates against vehicles and their contents continue to soar, as well as improving vehicle maintenance and reducing fuel costs. The combined benefits of telematics help drive business efficiency and will have a major impact on business fleet insurance renewals and handling of claims. As insurance remains a large part of fleet TCO, minimising rates remains a key challenge.
Come 2022, there will be no place to hide for fleet managers and drivers when it comes to telematics, all focused on helping improve business performance and moving toward the heavily data-focused electric/automated vehicle future. Get in touch with Rideshur to find out how your fleet can benefit.