As the cost of living crisis continues to squeeze finances, fleets can benefit from cost savings while meeting customer demand by leveraging telematics technology

Fleets of couriers have benefited from 30% fewer insurance claims by using a data-led telematics system, according to commercial motor insurer and insurtech unicorn Zego’s latest research, published today (5 September 2022).

In total, 28 fleets – including a total of more than 1,210 vehicles – have taken part in Zego’s Risk Management Academy trials and have seen this reduction in claims so far, despite a surge in home deliveries during the pandemic.

The three most recent companies to take part in Zego’s Risk Management Academy were Blue Sky Logistics, SJA Logistics and VanUp.

The trio spent three months trialling the commercial motor insurer’s fleet policy, which included managers being provided with coaching by a road risk manager alongside the provision of behavioural data to help improve the fleets’ performance.

Where drivers were showing high-risk driving behaviours, managers were able to monitor it via the telematics technology and encourage safer behaviour on the road, leading to fewer insurance claims.

Don McCormack, managing director of B2B at Zego, said: “Today’s 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. By using these insights to improve their behaviour, they can unlock up to 15% cashback on their policy.”

It follows the launch of Zego’s self-serve dashboard which provides personalised insights for fleet managers to coach high-risk drivers. It has been used to manage more than 1,500 vehicles.

A win-win

On average, fleet managers have seen a 15% improvement in fleet scores resulting in a 17% reduction in claims frequency due to engaging with Zego’s behavioural data.

Peter Livings, fleet manager at 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”.

Fleet businesses that sign up for Zego’s behavioural-driven insurance can access an end-to-end insurance management solution that provides insights on the risk for fleets and how to reduce these.

Leigh Cotterill, managing director of Blue Sky Logistics, added: “The overall score gives you a very rounded overview of the driver’s performance – some telematics data only tell you about one specific moment whereas Zego’s data is continuous. That is the power of this management system. It’s more complete and provides an overview of everything. It saves us a great deal of time and money.”