The insurance industry has always been the leaders in identifying risks, creating risk assessments and finding solutions that help to mitigate risks. The increasing number of accidents on the road has made commercial auto a nightmare. Carriers are dropping out of the space and brokers are finding it more and more difficult to find carriers willing to take on their clients.
We know that technological solutions have been emerging to minimize accidents on the road, but is it enough? The answer is simple. Technology alone can’t prevent accidents on a large scale. Safety needs to be approached in a holistic manner. There needs to be a number of components in conjunction with one another to create successful and profitable results for all parties.
How can we facilitate and make accident prevention successful?
The first step is through education and having an open discussion with the commercial business owners and fleet managers around safety. As insurance carriers and professional it’s imperative that you educate yourself with the solutions available for the client.
Installing an ADAS product or Advanced Driver Assistance System has proven to be effective in preventing auto collisions and is becoming a great solution to this problem. The technology acts as a second pair of eyes on the road and provides imperative reporting data. Presenting them with the solutions out there is instrumental in avoiding and preventing auto collisions and claims.
Instituting solutions such as proactive, individualized training and insurance verification can reduce collision rates by as much as 35%. Choosing the right ADAS product based on the unique risk profile of the client is important as well. Their industry, vehicles within their fleet and services they provide all create unique challenges and the solutions presented should reflect their specific needs.
What type of accidents are more prevalent and what are their main contributing factors?
Subsequently, the ADAS system needs to be capable of providing viable data reporting to improve driver behavior and performance. When analyzing the data a fleet manager or owner can determine which driver is not performing well and why which provides great insights needed to make the necessary changes to improving driver behavior and performance.
The challenge is that the business owner or fleet manager might not know how to retrieve the data or understand the reports. The key to avoiding this issue is by partnering them with a company that provides not only the technology, but an experienced staff to help them review the data and understand it while simultaneously educating them.
An ADAS that provides the driver and fleet manager with real time alerts is also important. This allows both parties to correct and act swiftly to change the behavior on the road immediately before an accident occurs, not after. It fosters a proactive rather than reactive approach to safety.
It is also helpful if the ADAS is capable of being integrated with other systems such as telematics or an ELD. Having the ability to be customized for the client and vehicle is a game changer and creates an enhanced and all-inclusive product.
Lastly, finding a company that has an ADAS product that provides safety as a service is the most important factor when choosing a solution for the commercial business. The technology will perform better and is more valuable if it is utilized properly and in conjunction with other safety measures. Having a resource to help the client through all the processes is invaluable and ensures the product is being used properly.
As insurance leaders it’s your job to be educated on what solutions are accessible and to be a valuable resource and advisor for your clients. Commercial auto has a chance to improve its numbers by properly utilizing the advanced technology currently available in the market. It’s time to start approaching your clients with the proper solutions that enforce safety on the road.
Safety is a difficult agenda to push, but it should be a priority.
America is a litigious society and accidents create huge liability issues for everyone involved. Start these discussions with your clients and as a carrier start looking into providing incentives for clients who are willing to implement these systems.
If we all want to remain profitable, commercial businesses need to enforce the proper measures and budget for safety in their business plan. Using an ADAS system in conjunction with a company that provides great service beyond the technology, will be instrumental in preventing claims and loss of premiums associated with commercial auto collisions. The cost benefits will be more apparent in the long term than the short term, but significantly impactful overall for everyone.
Let’s help facilitate these discussions and start enforcing safety on the road!