by Matthew A. Struck, CPCU, ARM – November 22, 2017

Flo’s got telematics. NFL Football teams have telematics. TESLA uses telematics. What is telematics and how can you use them to do business more efficiently and reduce the risk of claims?

What is Telematics?
  • Comes from tele which is short for telecommunication and matics which is short for informatics
  • Sends, receives, processes, and stores information about movement, location, speed, etc.
  • Can be used in vehicles or also in equipment and on employees’ persons
Potential Benefits
  • Improve driving behavior
  • Keep employees’ accountable for where they are and what routes they take
  • Fuel savings based on optimal routing
  • Less time spent travelling, and more time for actual work
  • Reduces vehicle/equipment down-time
  • Helps optimize your fleet by increasing the productive of each unit (saves money by limiting the purchase of unneeded vehicles)
  • Fine tunes fleet maintenance plans by tracking mileage and types of miles driven (city, highway, traffic, etc)
  • Fraud prevention – fuel purchases that don’t match up with miles driven, time on/off the clock, etc.

Best Practices

  • Planning – choose the system and setup that fits your needs and desired outcomes – utilize an experienced telematics professional or consultant
  • Pilot launch – do a beta test on a small portion of your fleet to test how the system integrates with your current systems, how effective it is at achieving your desired goals, and work out any issues prior to a full-scale deployment
  • Communication – keep personnel and stakeholders aware of the intent to deploy the system, the timeline for its’ installation, the intended uses of the system, and training that will be needed (if any) to get the most out of it
  • Routinely evaluate the effectiveness of the system and make changes as needed based on fleet size, fleet composition, workforce changes, operational changes, etc.
Telematics Uses Other than Fleets
  • Track customer flow through a retail space
  • Track the movement and activity levels of athletes
  • Container or Shipment Tracking
  • Vehicle traffic pattern optimization for cities and states
  • Health and activity tracking – step monitor, heart rate monitor, etc.
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