With the combined stress of global supply chain delays and increasing production shortages, fleets have had to pool their resources to strive for efficient operations. High Definition Vehicle Insurance (HDVI) works to combine telematics, data, and insurance into an end-to-end insurance solution for carriers.
In addition to using data from electronic logging devices, HDVI utilizes computer vision dashcams and other telematics devices. Reid Spitz, co-founder and head of operations at HDVI, shares how fleets can improve their safety operations and insurance coverage through technological integrations.
FleetOwner: How can fleets create better relationships with their underwriters?
Reid Spitz: In today’s world, insurance companies are looking to underwrite fleets that have safety as a key pillar of their organization.
Small and midsize fleets often want to be safer, but lack the resources necessary to impact safety in the same ways as some of the more successful mega-fleets. A core tenet of the HDVI approach is to bring the sophisticated safety and risk-management tools that the mega-fleets use down to the small and midsize trucking company as part of a holistic, end-to-end solution while maintaining that one-on-one relationship with a dedicated fleet services representative.
A great way for fleets to improve their safety is to work with their insurance companies to form a relationship with their loss control representative to ensure they’re communicating about the technology they have in place along with their future goals. For underwriters, it’s becoming less about how safe you have been over the past three years and more about how much you’re willing to invest in safety going forward.
FO: Is it helpful for fleets to share the wealth of data from onboard devices?
RS: In short—absolutely. The perception that the insurance company is there to be “Big Brother” is an incorrect one. Just like other service providers, insurance companies can deliver more tailored and effective products and services by leveraging real-time data. Data also is what powers services and tools fleets can use to achieve insurance cost savings.
FO: What can fleets do to protect themselves against risks they face during their day-to-day operations?
RS: With unsafe driving trends, litigation, nuclear verdicts, staged accidents, and insurance costs on the rise, mitigating risk is critical for today's fleets.
While limited telematics have been required in most trucks for several years in the form of ELDs, many fleets have not taken it further. Risk management begins with high-quality telematics—including road-facing computer-vision AI dashcams—in addition to what is already available for fleets, included within the cost of a highly-competitive insurance product.
However, great telematics are not enough to protect fleets from all risks they face. The data generated by the telematics devices has to be incorporated into a well-managed risk management program for fleets to see safety results. Fleets often are overwhelmed with data and don’t have the time or resources to fully evaluate and learn from it.
A few additional ways to reduce risk using telematics include:
- Implement a safety training program for drivers and offer a reward system for safe driving.
- Ensure driver schedules are respected and that drivers get adequate rest.
- Keep up with routine maintenance to extend the lifespan of a truck and avoid costly repairs.
- Use data to find the most optimal and safest routes for trucks, avoiding harsh weather or construction zones.
FO: What kind of safety training can fleets put in place for their drivers?
RS: Having a learning management system (LMS) is another pillar of great risk management, driver engagement, and driver retention. Being able to coach drivers on their specific patterns of behavior can go a long way toward improving safety. Additionally, being able to track what pieces of content that specific drivers have engaged with is a great resource in a litigation environment where plaintiffs' attorneys are using “reptile theory” to obtain nuclear verdicts. Fleets need to demonstrate they have done everything “the right way” to avoid these outcomes. By supporting fleets’ LMS activities, insurers have the opportunity to help mitigate risk and provide value to fleets.
FO: How can technology—such as telematics, dashcams, etc.—better protect fleets and their assets?
RS: The traditional way that fleets—and insurance companies, for that matter—have thought about dashcams and risk management is in the form of claims defense. An accident happens, it wasn’t the trucker’s fault, and the camera is the best defense against an aggressive plaintiff attorney. This is all true, and an important use case of telematics. However, it’s far from the full picture.
Increasing safety also improves a fleet’s bottom line. We’ve seen real-world use cases where telematics we provide are incorporated into our well-managed risk management program and become instrumental in preventing accidents from happening. The data also can be used to coach, manage, and reward drivers, significantly improving their safety and engagement.
Maintenance also is significantly improved through telematics. In an environment where vehicles are increasingly hard to come by, it’s important to maintain and efficiently use the vehicles currently in a fleet to avoid costly repairs and downtime. Fleet operators also can instantly be notified when there is an accident, which can save the fleet and the insurance company time, money, and headache.
FO: Which technologies that are part of advanced driver assistance systems (ADAS)—lane departure warning, automatic emergency braking, electronic stability control, etc.—do underwriters prefer?
RS: In many cases, insurance companies are not keeping up with the fast-paced evolution of technology within the commercial trucking industry. The reality is that today, many insurers don’t offer price breaks to a fleet that has ADAS systems in their trucks. Even if a fleet upfits its vehicles with the latest and greatest technology, they will not realize immediate, upfront savings. However, fleet owners should still install ADAS technologies, because they may realize savings over time as a result of decreased claims.
FO: During the policy renewal period, what steps can fleets take to get the best policy they can?
RS: The best way for a fleet to ensure that they get an excellent insurance policy is to constantly think of safety, not just in the short period when they are actively shopping for insurance.
By pairing telematics with a strong risk management program, fleets can make informed decisions to improve safety year-round, making a long-term impact on insurance costs. However, in the buying cycle, fleet operators should be very engaged with their agents and be prepared to demonstrate to insurance companies what improvements they have made and what they’re doing to monitor and manage the risk within their fleets.
FO: What advice would you give to fleets that have yet to adopt helpful safety technologies?
RS: Implementing baseline safety technologies, such as road-facing AI dashcams, can be costly upfront and disruptive short term. However, they will provide both immediate and long-term benefits that will far outweigh the temporary challenges.
Safety technology is the next wave of innovation and taking small steps to embrace it will have a ripple effect on safety throughout your fleet. Integrating baseline technology will quickly help improve your fleet’s safety performance and efficiency of your operation and help reduce the probability of losses.
