Increased rates of accident severity. Rising claim costs. Insurance coverage that is either more expensive or harder to secure. As risk managers grapple with these and other fleet management challenges, measures such as a renewed focus on training and driver safety, an improved understanding of the cause of accidents that lead to claims, and the ability to pull together a complete and accurate list of fleet exposure values are essential components in reducing fleet-related costs.
Given the range of departments and the number of people typically involved in the management of fleet vehicles, implementing and measuring the efficacy of such initiatives is easier said than done. By extension, the number of software systems, spreadsheets, and paper-based processes an organization uses to capture and store fleet-related data can make it difficult to monitor progress, identify trends, and report on successes. By consolidating this data in a central location that is linked to claims, policies, certifications, training records, and more, a RMIS can help better manage the risks associated with a commercial fleet.
#1 A RMIS can consolidate all fleet vehicle data
Data silos are an all-too-common issue for many organizations. This can hold especially true for those with an extensive fleet of vehicles, whether owned or leased, that directly employ or contract with drivers.
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The risk management industry certainly had an eventful 2018. As the calendar closes out another year, we’ve picked five prominent trends that may impact your organization in the upcoming year.
1. Increasing Damage from Natural Disasters and Extreme Weather
The 2018 list of major natural disasters is notable for its scope and intensity. From Japan’s flooding and mudslides to California’s wildfires to an unprecedented global heatwave, records for severity and damage were shattered throughout the year. One article noted that, “Nationwide, 8.5 million acres, an area larger than Maryland, have burned this year to date.” Unfortunately, extreme weather and increased natural disasters are becoming more commonplace.
In the article Step up your disaster preparedness, don’t wait for the news report, we discussed how to combine audit technology with weather alerts to develop a preparedness solution that works in real-time and ensures your organization is tested and ready when the next emergency hits.
2. Telematics Emerging in Fleet Management
Consumer adoption of telematics continued at a strong pace, particularly with drivers in the youngest age range, where some studies estimate four in five drivers have telematic-based policies. While the use of telematics to enhance fleet management programs has been underway for some time, the value of this data is becoming more clear.
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Regardless of industry, the numbers make clear why a focus on fleet safety is necessary.
- According to the National Safety Council, medically consulted injuries in motor vehicle incidents totaled 4.6 million in 2016.
- Total motor vehicle injury costs—including wage and productivity losses, medical expenses, administrative expenses, motor-vehicle property damage, and employer costs—for the year were estimated at $416.2 billion.
- NCCI data shows that, by cause of injury, motor vehicle crashes resulted in the costliest lost-time workers’ compensation claims, averaging $73,559 per claim in 2015 and 2016.
For public entities, when it comes to managing the risks associated with fleets, these numbers are especially concerning. “Fleets are a serious and growing risk management challenge for public entities,” writes Susan Kostro in the Risk Management magazine article Managing Public Sector Auto Risks. “The public sector collectively has the largest vehicle fleet in the United States. With 1.3 million cars and trucks, that sector is even larger than the commercial fleet segment, according to Government Fleet magazine, so the challenges of commercial auto insurance have been particularly hard on public entities.”
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