The intersection of telematics data and risk management

By Nick Saeger – AVP of Products and Pricing for Transportation

The proliferation of electronic logging devices (ELDs) and cameras in trucks has spawned a new era of readily available, quality data for both trucking companies and the insurance companies that support them.

That data offers a myriad of ways these entities can collaborate to fight two of the top three issues plaguing the trucking industry, according to American Transportation Research Institute (ATRI): legal system abuse and rising insurance costs.

Let’s dig a little deeper into a few of the possibilities.

The number one—and maybe most obvious—benefit of cameras in trucks is supporting possible exoneration in the event of an accident.

Without a camera, a not-at-fault claim will likely still settle in the trucking company’s favor. But a video that exonerates the driver accelerates the process and eliminates the possibility of needing to spend more time and money to get to that finding.

By that same token, videos that show the opposite can lead to better claims resolutions as well. With quick access to actual events, insurance companies can spend less effort determining details and fault, and focus more effort on resolving the claim. That access provides more efficient outcomes for all parties involved.

Telematics data can also be used to create crash notifications, which can be sent immediately to the insurance company. With speedier claims reporting, insurance companies can reach out more quickly to drivers and third parties, getting them more comfortable with the claims process—and potentially avoiding the detrimental impacts caused by claimant attorney involvement.

Cameras have potential beyond the quick and fair resolution of claims. Cameras—especially AI-enabled cameras from providers like Motive and Samsara (among others)—record safety events beyond the standard harsh events often captured by ELDs. These include:

• Tailgating: A potential precursor to a crash, and could be more prevalent when drivers log more urban miles where traffic patterns can be heavier.

• Sign or rolling violations: While dangerous anytime, these practices can be more common in rural settings with minimal traffic.

As an insurance carrier, we wouldn't want to see an abundance of these events anywhere. But with proper context, we can assess the true loss potential when motor carriers experience them.

AI-enabled cameras can detect other events that can be dangerous no matter the scenario. Specifically, handheld device usage and driver inattention often lead to crashes that can be significantly more costly than others, according to a recent study done by ATRI.

At Sentry^®, we’ve partnered with TruckerCloud to gain access—with our customers’ consent—to that telematics data. Our certified safety consultants can then bring that information back to our insureds to both point out areas for improvement and situations in which they perform well. Fleet owners can apply that knowledge to bolster safety performance, and potentially improve insurance-related costs.

The trucking industry already provides a wealth of data and information insurers use in underwriting and pricing. That includes Federal Motor Carrier Safety Administration (FMCSA) data, driver information, and prior loss data.

Telematics data can provide even more insight into the behaviors of trucking companies and their drivers. The more insurance companies and their actuaries know about trucking companies, the better they’re able to calculate appropriate rates.

These benefits incentivize everyone to continue to improve their habits, helping decrease claims and costs across the industry—a goal we can all strive for.