Telematics for Fleet Management

For a Fleet Manager, driver behavior is one of the most important factors in fleet management. Poor driving habits can lead to increased fuel consumption, higher maintenance costs, and even accidents. Therefore, monitoring driver behavior is crucial for any business that operates a fleet.

Comprehensive driver monitoring

Redtail Telematics offers a comprehensive driver monitoring solution that can help you identify patterns of inefficiency and address them. Our telematics system tracks a variety of data points, including speed, rapid acceleration, and hard braking. This data can be used to identify drivers who exhibit these behaviors and address the issue with specific individuals.

In addition to identifying and addressing aggressive driving habits, Redtail Telematics also offers a feature that allows you to set and monitor compliance with specific rules and policies. For example, you can set a speed limit for your vehicles and receive alerts when a driver exceeds that limit. This can help you ensure that your drivers are operating your vehicles safely and responsibly.

Using telematics to identify fatigue

Another important aspect of driver monitoring is identifying and addressing fatigue. Drowsy driving is a major cause of accidents and it’s important to keep track of the driver’s hours of service and schedule. Our system allows you to monitor the driving hours of your drivers and schedule the breaks and rest time to help prevent fatigue.

Telematics benefits

In conclusion, monitoring driver behavior is crucial for any business that operates a fleet. Therefore, telematics for fleet management should be seen as integral for fleet managers.

Redtail Telematics offers a comprehensive driver monitoring solution that can help you identify patterns of inefficiency and address them. By monitoring driver behavior, you can improve the safety of your fleet, reduce costs, and increase productivity.

Contact us today, at sales@redtailtelematics.com, to learn more about how Redtail Telematics can help you improve driver behavior.

Telematics and cost of living

The cost of living crisis is real.  For most Britons, their biggest household bill after council tax and energy is their car insurance.

We have seen that inflation is slowing a touch as oil prices reduce.  However, ONS data has also revealed that the price of car insurance shot up 50.9% in the last 12 months.

Ouch!

A typical policy now costs £2,145 for under-25s, £850 for the 25-to-49 age group, and £568 for over-50s

Our recent YouGov survey found that insurers are missing opportunities to win new telematics motor insurance customers. Only 4% of respondents had received any communication from insurers about telematics benefits.

This low number is partly owing to the lack of transparency offered by price comparison websites.  Additionally, it is at odds with consumer demand as the interest in telematics-based insurance continues to rise.

How does telematics work?

Telematics involves having a small device fitted to your car that records the speed, distance travelled and time of the day the car is driven. The device can also monitor motorists’ driving style by recording braking pressure and speed of acceleration.

This information is relayed to the insurance company and in some cases, you are rewarded with a discount or other rewards for good driving. However, there is a potential downside. The customer’s premium could go up or their insurance may be cancelled altogether if they drive carelessly or badly.

How does telematics appeal to consumers?

Three main incentives for choosing telematics-based insurance policies were expressed by respondents. These are:

• Obtaining cheaper car insurance
• Being incentivized financially to drive safely
• Having improved awareness of their driving style

Other ways telematics can help you save…

The appeal of telematics policies is broadening as a way for all drivers to access lower premiums. Redtail Telematics’ customer By Miles offers pay-as-you-drive policies. These policies are priced by the mile and only use the distance driven. There is no driver scoring or curfews. This brings telematics out of the youth market and offers the benefits of smarter, fairer pricing to a far wider audience.

Half of road users have reduced their mileage through the cost of living crisis. As a result, they may now be better off with pay-by-mile insurance. On average, those drivers who switched to By Miles were able to save around £300 a year. These savings will help with expenses elsewhere and the cost of living crisis.

Impacts of new legislation in January 2022

New rules introduced in January 2022, prevent insurers from quoting higher prices to existing customers than they would a new customer. This practice of ‘price walking’ was outlawed in an attempt to make insurance pricing fairer and more transparent. With telematics, insurers can help their customers reduce their premiums AND deliver a wealth of benefits. These benefits include improved driver safety and a more efficient claims experience.

Action needed!

This round of research has been particularly revealing about how the insurers’ message is not getting through. As a result, the public’s understanding of the benefits Telematics policies can bring is poor. The richness and relevance of telematics data remains invaluable.

It informs insurers looking to:

• Provide fair pricing
• Improve road safety
• Respond to environmental concerns

Redtail is passionate about our data informing insurer data to make a discernible impact on all three.

Telematics and IoT Solutions

Matteo Carbone / IoT Insurance Observatory and Swiss Re published research late last year. This research characterized how telematics and IoT solutions are deployed to reduce anticipated losses.

In the auto insurance case, Matteo suggests the most attractive proposition to be:

App-based monetary reward for good driving for existing policyholders.

‘Prize money’

This is based on two factors.  Firstly, 45% of policyholders have the same policy for more than 5 years.  Also, weekly feedback with ‘prize money’ shows best behavior change for those policyholders.

Simple, right?  Matteo kindly let us look in detail at their survey. We viewed this alongside our own annual look at consumer attitudes to telematics. Our most recent headlines showing trends from our 2020/22 surveys were:

Improve loss ratio

Let us lead with Matteo’s view that insurers need to move quickly to improve loss ratios. With this in mind, there are two areas where we concur and converge.

First is the belief amongst our consumer sample that their driving can be improved. This could be a positive contributor to policy value and a greater understanding of risk.

Secondly, improved behaviors will have a positive impact on incidents and claims.

So why is it not happening?

Matteo’s most important hypothesis is on ROI/business case.  The cost of the tech must be smaller than the losses prevented.  If we were to extrapolate the outputs of the two surveys, we could suggest the following:

• Broad target audience, but segments clear from Matteo research (Telematics survey)
• Low mileage to driver feedback and coaching propositions
  • Anti-theft & automatic emergency system secondary needs
• App-only or app-and-tag solutions
• Discount led with added benefits in the event of a claim, on your fuel costs and on the environment

Action needed!

Now with my commercial head on, the necessary call to action?!  Let’s do this?!  Insurers need action to improve loss ratios.  Consumers need to see value from insurers.  Telematics is the answer!

Fireside chat: Marc Pell, Managing Director Tempcover & Andrew Little, Head of Marketing & Sales REDTAIL

Well, Starbucks sofas with coffee actually.

But still, I have known Marc for a number of years and enjoyed being adjacent to Tempcover’s spectacular growth journey.  The common thread between Tempcover and REDTAIL, and the chats that Marc and I have had, is a real commitment to actionable data to inform business decisions and provide policyholders with value.

Temporary car insurance and telematics – so what?

Let’s provide some context:  Marc and his team identified a need for short-term, temporary car insurance over a decade ago.  Those needs include test drives, new car owners requiring cover for a few days, borrowing family or friends’ cars for moving home and car sharing.  On the commercial lines side, Tempcover also sees a growing need for businesses to insure vans for their fluid workforce.

Currently, the majority of business is placed through the Tempcover website, although the best deals are to be found on their App.  The average period for insurance is 2-3 days, the most common one day with >40% repeat business.

REDTAIL provide data on the performance of driver and vehicle with immediacy and accuracy.  This combines the benefits of Usage Based Insurance (Risk, Premium, Claims) with that of Fleet Management (optimizing performance of your drivers and vehicles).

Benefits for Insurance

From the pure insurance side, telematics data supports Tempcover’s business in two ways:

• Claims – in the event of an incident Telematics data provides granular insight into precisely what happened to whom and where and when and with what force.  This not only makes resolution of claims 65% quicker but also deploys real science in assessing and proving liability
• Understanding the risk profile of a driver in order to provide the most correct and competitive premium uses driver ‘scoring’ at its heart.  REDTAIL data considers a number of parameters scrutinizing speed, acceleration, braking and cornering, for example

Benefits for Fleet Management

On the fleet management side, a car dealership or a small business with vans and fluid workforce would benefit from:

• Knowledge of where the vehicle is in its itinerary, routing and fuel efficiency
• Understanding of how the vehicle if being driven (see above!)

Loyalty and membership

Additionally, Marc and I discussed the idea of a membership and loyalty scheme.  Given Tempcover’s enviable repeat business, we brainstormed the idea of a club.  A club for those increasing numbers of short-term drivers, with perhaps a subscription, to include peer ranking, key fob and driver scores.  We will continue to talk and explore and innovate to sustain the meteoric growth of the sector and support Tempcover’s leadership position.

Tempcover was acquired by confused.com in 2022.