Telematic technology has long been used as an aid in the South African formal Fleet management industry. Its use cases and consistent improvement in features, accuracy, and measurement have offered more and more sophisticated fleet Risk Management capabilities and efficiency enhancements. Both insurers and fleet operators are increasingly adopting AI-driven solutions to enable a more comprehensive and proactive approach to assessing risks and the implementation of effective risk mitigation strategies and initiatives.
Traditionally, fleet management has relied on a reactive approach, addressing risks only after incidents occur and the efficiencies to speed up the repair process following claimable events. This reactive response in identifying risks and processing claims can lead to an elevated risk profile, which often results in higher insurance costs and a strained relationship with insurers.
Recent year’s advancements in telematics technology have demonstrated significant benefits for fleet owners by transforming raw data into actionable insights. For example, GPS technology, AI-enabled dash cameras, real-time alerts, and onboard diagnostic apps for drivers and managers facilitate more effective monitoring of unwanted behaviours, fuel management, and the implementation of necessary preventative measures. By effectively leveraging telematics data for decision-making, fleet and finance managers can present a stronger case to insurers, showcasing evidence of proactive and profitable risk management practices within their businesses. This can result in more favourable insurance terms, sustained and favourable relationships with insurers, and ultimately, cost savings.
Utilising telematics technology also has the potential to reduce the frequency of vehicle claims and associated costs through rapid response capabilities. For instance, automatically submitting a first notification of loss to your broker and insurer allows for prompt engagement with other parties involved and can minimise the downtime spent getting a vehicle towed or repaired. Telematics technology drives efficiency not only in the claims process but if used correctly can also assist business owners and fleet managers in implementing policy changes to help improve the fleet risk profile and logistical decision-making such as route planning and optimisation and utilising geo-fencing. Additionally, telematics can provide evidence of driver improvement and link claims to driver behavioural trends, enabling and informing effective training and education efforts as well as reduced vehicle maintenance and tyre wear.
As fleet management becomes increasingly automated, advancing technology will support more data-driven decision-making. This evolution promises more efficient, cost-effective, and environmentally friendly operations, along with the potential to reduce claims frequency, severity, and costs, improve insurance premiums, and minimise vehicle downtime.
To discover smarter ways to improve your insurance, risk management approaches, increase your fleet safety and enhance operation, contact us at www.wyngaardtbrokers.com
Wyngaardt Brokers (Pty) Ltd is an Authorised Financial Services Provider (FSP 53138).
Disclaimer: The information provided is not intended to be a substitute for legal, medical, or financial advice, but is only provided for informational purposes. Ts and Cs, limits, and standard rates apply.
