Credit: Oleksandr/Adobe Stock
Leveraging telematics to compile detailed driving data and better assess risk is fast becoming an industry standard.
Eight-two percent of commercial auto insurers in 2024 use telematics in their organizations, according to a report by SambaSafety, after just 65% utilized the technology in 2023.
Also in 2024, 60% of commercial insurers formed dedicated, multi-disciplinary telematics teams, with Loss Control being the most represented area.
“As the industry faces mounting claims costs, nuclear verdicts and increasing roadway risks, telematics offers an important tool for overcoming these challenges,” said SambaSafety CEO Matt Scheuing. “This report provides in-depth insights into how insurers, brokers and fleets are using telematics to create safer roads and establish more profitable insurance programs.”
According to SambaSafety, 75% of commercial insurers say getting fleets to share data is their biggest hurdle. Currently, just 36% of fleets share data, with 74% of them saying it’s because their insurer or broker never asked.
Challenges to implement telematics include multiple logins, manual data manipulation, tracking drivers to a device, interpreting or acting on data and driver resistance.
Other key insights from the report:
- Seventy percent of carriers plan to implement usage-based insurance (UBI) in the next few years, up from one-third last year.
- Fifty-one percent fleets plan to expand their telematics devices or providers over the next 12 months, signaling ongoing telematics growth.
- One hundred percent of commercial insurers and 63% of brokers agree telematics is critical to improving profitability.
- Seventy-two percent of fleets report reduced crashes and claims due to the combination of telematics and training, leading to lower insurance premiums for one in four respondents.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.