Optimising insurance thanks to smart data consolidation

Against a tough economic environment, it’s more crucial for fleet managers to gain optimum value from every cent they spend. Insurance is a prime example of an expensive cost that managers want to reduce, while also ensuring any money spent is not squandered.

That can be done by optimising a fleet’s insurance - a task that’s now easier thanks to the increase in data collected and consolidated from vehicles, telematics and other sources. Here, we explore how and why.

How is fleet data used for insurance?

Fleet data can provide companies with insights into

• how their cars are driven
• when their cars are driven
• who is driving those vehicles during those times

Fleet managers can use these insights to tailor insurance policies specifically to their requirements. Policies then only include what’s necessary. What’s superfluous to need is omitted. But using data to inform policy choices is not the only way insurance decisions are optimised.

Crucially, fleet managers can drive behavioural change using data. By knowing how a car is being driven, FMs gain intelligence into what and who is increasing insurance premiums. They can therefore educate specific, erratic drivers, but also incentivise best driving practices - reducing insurance costs for the future.

Consolidating fleet data

Importantly, fleet managers must revisit their data regularly and consolidate it across all sources. In doing so, they can spot persistent trends and use them for increased insight - helping them tailor policies even more accurately and further encourage behavioural change.

For example, consolidated data could highlight the more dangerous times vehicles are driven. Or, it can identify if incentive programmes that promote better driving are really working. As Jonathan Bates of MiX Telematics told Fleet Europe: “You can’t improve your results if you don’t change people’s behaviour.”

Additionally, long-standing trends identified from consolidated data can strengthen your relationship with your insurer. Being able to provide pertinent information enables you to work together effectively to come to a policy solution that works best for you both, over the long term.

Want to know more?

This article is an extract from our E-Book "Benefitting from Fleet Data Consolidation" that you can download for free from our Knowledge Center

Picture Credit: Shutterstock 703768939