Telematics Overview
Property & Casualty
Telematics Overview
What is Telematics?
Vehicle telematics links wireless devices, global positioning satellites (GPS), on-board vehicle diagnostics (ODB), video, black box technologies and fleet management software to collect and transmit driver and vehicle data. Data may include driver location, driver behavior, engine diagnostics and vehicle performance.
Telematics devices collect and transmit GPS and vehiclespecific data via wireless/cellular networks to a centralized server where, through a system of cloud, hardware and software solutions. The data may be optimized, categorized, analyzed and reported on a desktop dashboard to help fleet operators efficiently and effectively manage their mobile assets and resources.
Telematics Users
- Fleet and logistics managers use vehicle telematics to coordinate and optimize the vehicles they manage and gain a comprehensive view of the efficiency and productivity of their fleet.
- Safety professionals and risk managers can use telematics technologies to gain insight into driver behaviors, help identify at-risk drivers and intervene to mitigate and reduce driver risk, including training, one-on-one driver observation, driver coaching, driver re-assignment or disqualification.
- Insurance claim professionals may use vehicle telematics to identify fraud and settle claims efficiently. Data from telematics provides insight into the cause of accidents and the severity of damage.
Benefits of Telematics
- Increased efficiency and reduced fuel costs by optimizing route planning, avoiding traffic bottlenecks, cutting engine idling and detecting unauthorized use of vehicles
- Reduced maintenance costs by alerting managers to potential problems before they become severe, enabling timely repair and maximized vehicle uptime
- Reduced administrative costs through automation of tasks such as regulatory reporting, electronic logging of service hours, International Fuel Tax Agreement (IFTA) reporting, vehicle inspections and payroll calculations
- Enhanced safety from data analysis for individual driving habits, targeted training and coaching to improve driver skill and behavior
- Reduced accident frequency and severity
- Improved roadside assistance response
- Improved asset and cargo security and theft recovery
- Improved information to validate claims, identify claim fraud and settle claims faster
- Improved ability to identify and reward exemplary driving
- Improved communication with customers on delivery delays, updated ETAs and improved customer satisfaction
Telematics Indicators
Depending on the system and equipment selected and deployed, some of the data telematics can monitor and capture include:
- Location
- Speed
- Driving Patterns
- Seat Belt Use
- Aggressive Acceleration
- Aggressive/Harsh Braking
- Aggressive Lane Changes
- Aggressive Cornering
- Odometer Readings
- Fuel Consumption
- Engine Idle Time
- Engine Idle Fuel Consumption
- Garaging Locations
- Geofencing
- Cell Phone Usage
- Route Adherence
- Vehicle Battery Charge
- Fuel Level
- Miles to Empty
- Oil Temperature
- Oil Level
- Coolant Temperature
- Vehicle Maintenance Needs
- Engine RPM
- Engine Load %
Telematics Best Practices For Risk Management
Successful execution of a telematics strategy depends on building an organizational infrastructure and processes to review, analyze and react to data inputs with driver training/coaching, driver management and supervisor accountability effectively. There are some telematic best practices to consider integrating into a risk management program, highlighted below.
Establish a cross-functional launch and implementation team:
Create a collaborative setting for all organizational groups related to drivers and vehicles. The implementation team should establish performance objectives and desired outcomes for the telematics technology and create an implementation game plan to help achieve desired results. Organization-wide insight in the selection, procurement, installation, use, maintenance, analysis and reactive administrative actions are invaluable to help create a successful telematics program.
