New data from commercial motor insurer Zego shows delivery driver fleets could reduce their insurance claims by up to 30%, thanks to data-led telematics systems.
Under its Risk Management Academy, participating fleets trial Zego’s fleet policy and get to see in real time how their drivers are behaving on the road. They also get a tailored approach from a road risk manager alongside their behavioural data to help improve the fleet’s performance.
The three most recent companies to take part – Blue Sky Logistics, SJA Logistics and VanUp – saw a fall of 22% in insurance claims after the behavioural data-led telematics systems were fitted to their vehicles, despite the surge in home delivery prompted by the pandemic.
And overall, the 28 fleets (running over 1,210 vehicles) that have so far done trials with the insurer have seen the number of claims made against their policy drop by 30% on average.
Zego’s technology combines digital solutions and an in-house road risk management team, enabling fleet managers to engage their drivers with behavioural scores and advice on changes in driving styles. These can reduce the likelihood of a collision and place the fleet in a good position for their insurance costs. Fleets that use Zego’s insights can unlock up to 15% cashback on their policy at renewal.
The most recent three-month trial of the technology and programme across three fleets follows the launch of Zego’s self-serve dashboard, which gives personalised, actionable insights and useful tips for fleet managers to coach high-risk drivers. On average, fleet managers have seen a 15% improvement in fleet scores, resulting in a 17% reduction in claims frequency due to proactively engaging with Zego’s unique behavioural data.
Don McCormack, managing director of B2B at Zego, said the data clearly shows that businesses can improve road safety and cut costs by using data-led telematics.
“Fleet businesses feel pressure to reduce costs as economic conditions worsen and keep up with customer demand post-pandemic. Fairer and more flexible insurance will provide a lifeline for many in the long run.
“Zego’s unique risk management technology has provided a viable way for fleet owners to regain control of their insurance policies.”
Commenting on the RM Academy, Peter Livings from trial participant VanUp said: “Reducing cost is very important in every business and Zego understands our needs. Driver behaviour monitoring allows us to keep in touch with drivers and communicate the importance of driving safely. Accidents will always happen, but if we can reduce the risk, it is a win-win.”
