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For many years, agents and brokers have advised clients about the benefits of telematics in reducing commercial auto risks. So, why haven’t market conditions improved, and why is distracted driving still so prevalent?

The answer comes down to follow-through.

Telematics are excellent tools to track and prevent distracted driving and other bad habits. However, when businesses implement telematics but fail to act on their data, they cannot achieve the desired results. Instead, fleet managers should combine telematics with ongoing driver training, and it’s up to agents and brokers to explain why this is a value-added approach.

Unpacking the Dilemma

The commercial auto segment continues to be chronically unprofitable, incurring a net loss of $5 billion in 2023 and deteriorating even further in the first part of 2024, according to AM Best. Simultaneously, distracted driving remains a leading cause of accidents, injuries, and fatalities, claiming an estimated 3,308 lives in 2022 per National Highway Transportation Safety Administration data.

Even worse, the number of distracted driving accidents is vastly underreported because it is difficult for investigators to prove a distraction caused an accident without data. Traditional distractions like eating, smoking, or adjusting the radio while driving aren’t trackable.

Finding the Right Tools

Telematics fills the gap by giving fleet managers data on hard braking, hard acceleration, speeding, and other unsafe driving practices. Some telematics devices also offer phone distraction reminders. However, telematics is only meaningful when fleet managers talk with their drivers about the data.

When those conversations do not happen, the results can be catastrophic. Take the example of a driver with a history of hard braking issues. One day while on the job, his truck rear-ends a minivan carrying a family of five, resulting in fatalities. During the post-accident investigation, attorneys retrieve telematics data showing that the driver was a repeat offender, but they find no documented evidence that the company tried to correct his behaviors. Accordingly, the company’s executives and their insurer are all deemed liable, and the company is exposed to a potential nuclear verdict.

This unfortunate circumstance could have been avoided had the fleet manager proactively followed up with his driver.

Backing Up Data With Training

At Pennsylvania Lumbermens Mutual Å˽ðÁ«´«Ã½Ó³»­ Company (PLM), we have seen clients achieve dramatic reductions in claims costs by combining telematics with driver education. Potential benefits include increased uptime, improved driver retention, fewer accidents, and fewer lost-time injuries. Plus, if a client does experience an accident, their premiums are more likely to remain steady, thanks to their effective use of telematics.

To help clients achieve these results, agents and brokers must offer thorough guidance. Providing tips on how to set up a telematics solution is just the start. Sometimes, fleet managers will be overwhelmed by the amount of data they receive through telematics, creating analysis paralysis. Other times, they may need guidance on how to translate their data into education.

Set your clients up for success with these tips:

• Offer constant driver feedback. Encourage fleet managers to review telematics data with their drivers continually. Ask them to inform their drivers about notifications for risky driving behaviors. This can be as simple as a quick email reminding drivers they are being observed and nudging them to improve their behaviors.
• Implement a driver safety program. Ideally, telematics should be just one part of a comprehensive plan that also includes safety policies, a drug and alcohol policy, and behavioral expectations. Fleet managers should also conduct regular defensive driving training both at the time of hire and at least annually, along with refreshers based on new regulations or a marked decline in safe driving behaviors. Ask them to double down on the basics, such as drivers raising their line of sight as far down the road as possible, always leaving themselves an out, and making their vehicle visible to other motorists.
• Emphasize the positive. Effective use of telematics isn’t only about changing unsafe driving behaviors; it is also about reinforcing the positive. Agents should make sure fleet managers give their best-performing drivers a pat on the back when data shows they are doing their job well.
• Recommend potential upgrades. While one-on-one instruction is always best, some fleet managers may be too pressed for time to offer the kind of driver training needed to support their telematics systems. In these cases, consider recommending newer telematics tools that use AI to provide in-the-moment feedback (essentially telling drivers to “back off” every time they follow another vehicle too close, for example). AI-driven solutions will cost more to implement, but they may pay for themselves in terms of claims and cost reductions down the road.
• Consider ride-alongs for habitual offenders. At their core, telematics devices are electronic manifestations of the Hawthorne Effect, in which individuals behave differently when they know they are being observed. Ask fleet managers to reinforce this principle with habitual offenders by using a time-tested technique—the ride-along. This will help them watch their driver in action and correct any hazardous driving behaviors on the spot.
• Evaluate other safe driving strategies. Ask insureds to investigate the merits of other tools that can prevent distracted driving and reduce fleet costs. Phone blocking and monitoring tools like LifeSaver Mobile, for example, prevent drivers from using their phones while their vehicles are in motion. Forward-facing and driver-facing cameras, meanwhile, give fleets evidence they can use in the event of a crash, which may help exonerate drivers and free their companies from liability.

Ease Clients’ Auto Risks

Even the best telematics solutions, backed by comprehensive training, will not completely eliminate distracted driving risks. But when agents partner with their clients to institute data-driven driver training and ensure comprehensive follow-through, they can offer the maximum protection for their clients’ drivers, vehicles, and companies.

Topics Personal Auto