Rising insurance costs and underwriting scrutiny are top concerns for today’s fleet carriers. According to the American Transportation Research Institute, insurance premiums have increased by 36 percent over the past eight years. While many factors contribute to the increase, the rise in frequency and severity of nuclear verdicts plays a significant role.
One of the easiest and most effective ways to reduce the likelihood of a nuclear verdict and control your fleet’s total cost of risk is to engage telematics. Telematics systems give fleet carriers real-time visibility into driver behavior, vehicle performance, and route patterns in real time, tracking things like fuel consumption, harsh braking, speeding and maintenance needs. When used effectively, telematics enables carriers to proactively reduce risk and lower operating costs, including insurance premiums.
In the past, insurers made underwriting decisions based heavily on a fleet’s historical losses. Now, telematics and insurance are converging, with insurers increasingly using data as evidence of proactive fleet safety management. Carriers that can demonstrate measurable improvements in driver behavior, maintenance and compliance can earn better policy terms or lower rates.
CREATE ACTIONABLE SAFETY STRATEGIES FROM TELEMATICS DATA
Installing telematics is the first step, but the true value comes from analyzing the data harnessed from the telematics and rolling that into a fleet safety management program. Modern driver safety telematics systems go well beyond punitive monitoring. Fleets that use telematics to recognize and reward positive performance often see stronger engagement and lower turnover.
Recognition programs, like safety streak awards, peer shoutouts or performance incentives, make safety a shared goal rather than a management directive. This approach also supports driver retention, one of the most overlooked variables in insurance pricing. Fleets with stable, experienced drivers tend to have fewer incidents and lower claim costs.
These three best practices help fleets use telematics to reduce risk while fostering a culture of continuous improvement:
Data first, analysis second: speeding, distracted driving, following too closely and other poor driver behavior should be identified in real time and addressed with training.
Corrective training and documentation: document how behaviors are addressed — whether through coaching, formal training or disciplinary action to strengthen accountability and ensure corrective action.
Performance tracking: dashboards and driver scorecards track trends over time, allowing managers to assess coaching effectiveness and identify high-risk driver behavior.
DATA INTEGRITY IS KEY
As insurers adopt more telematics-driven underwriting models, data integrity has become a key component of trust. Fleets that adjust parameters before renewal or delete unfavorable events risk damaging credibility with insurers. Underwriters can identify sudden score changes or data gaps through audit trails in telematics systems. Consistent data tells a stronger story than selectively curated results and directly improves insurance outcomes.
In fact, sharing this data positions the fleet as a better-than-average risk and helps underwriters’ price more competitively. A strong commercial fleet insurance underwriting submission tells a story of measurable progress. Approach renewals as ongoing opportunities, not once-a-year events. Throughout the year, fleets should capture and organize telematics metrics that demonstrate how they’ve strengthened safety and reduced losses.
That narrative should include:
- Trend data showing quarter-over-quarter improvements in key risk factors like speeding, harsh events and distracted driving;
- Coaching results demonstrate fewer repeat violations and improved driver scores;
- Claims insights showing incidents avoided or exonerated with video evidence; and,
- Benchmarking data comparing fleet performance against peers in similar operations.
USING TELEMATICS AS A STRATEGY
Telematics is no longer just an operational tool. It has quickly become a strategic asset. In an environment defined by rising premiums and heightened underwriting scrutiny, fleets that mine their own data gain a measurable advantage.
The carriers that treat telematics as a year-round risk management discipline, not a box to check before renewal, will be best positioned to control losses, strengthen their safety scores and negotiate from a position of credibility. In today’s market, your data tells your story. Make sure it reflects your fleet’s true risks.
about the author
David Trevino is a senior vice president at global insurance brokerage Hub International. He has provided risk management and insurance consultation for businesses for over 25 years. He provides insurance consultation for employers, with an emphasis on transportation, construction, and the oil and gas industry. His objective is to utilize progressive ideas to help reduce total cost of risk for clients, through insurance procurement, alternative risk transfer solutions, group captives, and worker’s compensation claims advocacy and mitigation.
