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Beyond fair pricing. The benefits of telematics for fleet insurance.
#telematics #ubi #fleets
POSTED ON:
April 21, 2022
Telematics as a transport monitoring method with the help of GPS techs was introduced to vehicle insurance more than ten years ago.

And since then, telematics has been used mainly for pricing adjustment in the B2C sector, also known as UBI. And though this technique showed some good results in personal lines, it did not significantly improve the profitability and loss ratio of the insurance companies that do fleet insurance.
TAGS:
Telematics, fleet insurance, connected fleets
And today, we are here to talk about the benefits and the usage of telematics beyond just pricing and UBI for commercial lines and how we make it to the top at Draivn.
Quoting and risk selection for new clients
Understanding the fleets’ risk level and converting it into a quote has historically been quite a straightforward but not that flexible and transparent process.

When selecting risk, underwriters used to take into account mainly the vehicle type and recorded claim history. And though this basic approach is traditionally utilized on a scale, this data is just not enough to properly understand a fleet’s level of risk. High and unpredictable loss ratios speak for themselves.

With a deep understanding of this problem, Draivn brings additional data sets to the table. Insurers can use them to improve their risk selection procedures at the moment of sale. Draivn enables commercial insurance companies to easily extract historical telematics data from ANY fleet they are onboarding, no matter the platform.

This way, insurers automatically receive the information about the fleet vehicles on an individual car level (VIN, vehicle type, license plate), vehicles usage, driver behavior, and conditions operated. And when blended with the existing risk assessment logic, this information helps to:

✅ Optimize/digitalize customers’ onboarding process;
✅ Significantly improve risk-selection models;
✅ Launch telematics-driven programs without income-draining try-before-you-buy procedures.
The insurer’s portfolio portal for existing customers
Telematics solutions for insurance companies have always required complex and expensive implementations. That’s because telematics service providers had to embed the new hardware and software into the internal systems and workflows of an insurer and their fleet customers. The above led to increased TCOs and touchy political decisions.
Fleet portal
Apart from the portfolio portal and quoting tool for insurance companies described above, Draivn introduces a fleet portal as a part of a Connect Fleet platform. It’s a tool for fleet owners, and insurers can provide this product to their fleet customers as a separate service, featuring:

✅ Fleet safety-related information: fleet safety KPIs, risk reduction and operations optimization recommendation, and performance benchmarking against similar fleets.
✅ Compliance tools: DOT and file management, vehicle and driver records.
✅ Policy administration: insurance spending control, policy limits, and reporting.
At Draivn, we bring in the toolkit for fleet insurance companies. It works with existing fleet data completely in the background, not requiring any changes to be done either on the side of fleets or insurers. With the platform in place, insurers can:

✅ See their fleet customers on an individual vehicle level (new vehicles added, existing vehicles changed/removed, total vehicle number changed);
✅ Track their fleet customers’ performance from the safety point of view;
✅ Use insights and analytics to improve their KPIs, forecast accidents, and introduce risk reduction services;
✅ Detect and reconstruct accidents, improve the liability checking process, avoid fraud and false claim payments;
✅ Come up with a range of value-added services and tools for customers, improving the overall level of service.

The beauty of the portal is that it works with no additional implementations or changes on the side of fleets and insurers. Draivn collects, analyzes, and harmonizes the existing telematics data from fleets completely in the background and builds an insurer’s portal on top of it.
Summing it up
Telematics data on a scale – when acquired and interpreted properly – is a powerful and highly beneficial tool for vehicle insurers, brokers, and MGAs. It goes beyond pricing or UBI and can improve the operations of the insurance companies on many levels:

✅ Increase revenue by attracting more customers and enabling new revenue streams;
✅ Reduce TCO through more efficient risk selection and underwriting;
✅ Improve customer loyalty via new digital services;
✅ Introduce an ecosystem of non-insurance services based on existing telematics data (warranty, road assistance, etc).

And yes, we can make it happen already.

Contact us and let’s discuss how your company can benefit from Draivn. Or follow us on LinkedIn to see how we change the industry.

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