Posted on 08 Sep 2010
As part of its ongoing commitment to improve driver safety for its commercial auto customers, Travelers on Tuesday announced a potential discount of up to 15 percent on certain auto liability insurance premiums for qualifying businesses that effectively use telematics technology to monitor their owned commercial fleets and driver behavior. Similar to global positioning systems (GPS), vehicle telematics go beyond navigation and positioning by storing and sending data on how a vehicle is operated.
According to a recent study conducted by the Virginia Tech Transportation Institute (VTTI), funded by the Federal Motor Carrier Safety Administration (FMCSA), implementation of driving behavior management systems using in-vehicle telematics devices can result in a significant reduction in the number of risky driving behaviors. Armed with the results of this research, Travelers seeks to incent its customers to coach their employees in safe driving by using data obtained from telematics devices.
"By embracing fleet vehicle telematics and offering discounts to our commercial auto customers that effectively deploy this technology, Travelers is furthering its commitment to improving driver behavior and roadway safety," said Scott Higgins, President, Travelers Commercial Accounts. "Customers who are already taking advantage of the latest telematics technology are encouraged to work with their independent insurance agent or broker to see if they qualify for the discount."
Depending on the specific type and brand of vehicle telematics deployed, businesses will be able to receive information about driver behavior, vehicle routing and fuel efficiency. All of this information can help risk and fleet managers minimize risk and costs. Additionally, risk and fleet managers will have the feedback necessary to engage drivers about their driving performance and provide coaching on how to improve safety.
"Our research shows that combining onboard safety monitoring with behavioral coaching leads to a significant reduction in the number of risky driving events," said Jeff Hickman, Lead Researcher, Virginia Tech Transportation Institute. "We at VTTI are pleased that companies such as Travelers are using the results of our research to recognize the opportunities for risk and fleet managers to improve driver safety, which can assist in making the roads safer for everyone."
"The use of vehicle telematics is the next step in improving the safe operation of commercial fleets, transforming drivers with less oversight to those whose performance can be observed, coached and managed," said Chris Hayes, Director of Transportation Services, Travelers Risk Control. "By using this technology and the wealth of information it can provide, fleet and risk managers can have data that will aid in developing specific training programs that positively modify driving behavior."
To qualify for a discount, businesses must show that they have installed vehicle telematics devices in a sufficient number of their fleet vehicles and that they are actively incorporating safety information from the devices into their ongoing safety feedback to drivers, at least on a quarterly basis. For more information about the availability and qualifications of the vehicle telematics discount, contact a local Travelers independent agent or broker.
The Travelers Companies, Inc. is a leading property casualty insurer selling primarily through independent agents and brokers. The company's diverse business lines offer its global customers a wide range of coverage in the auto, home and business settings. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of approximately $25 billion in 2009. For more information, visit www.travelers.com.