This article was produced in partnership with NZI
NZI is successfully leveraging a brave new data world to reduce accidents and improve road safety for the commercial fleets taking advantage of its Fleet Fit programme – a goal once thought out of reach partly due to a lack of capacity to convert high volumes of data into meaningful changes in driver behaviour.
Yet NZI appears to have cracked the code with its Fleet Score initiative by using customers’ GPS or telematics data to measure a driver’s on-road behaviour and performance, which provides long-term insights to help businesses deliver safer fleet performance.
“We have numerous examples of fleets and drivers who have reduced their frequency and severity of speed limit violations by over 80% with the use of Fleet Score reporting,” says Oliver Jepson, NZI National Manager, Motor.
Fleet Score is one of the Fleet Fit programmes and is administered by CCS Logistics, a wholly owned IAG subsidiary.
“We see a direct correlation between the coaching provided to drivers of Fleet Score customers using data available from GPS systems, and the reduction in fatigue events and speeding events. Driver monitoring technology and Advanced Driver Assistance Systems can help to change driver behaviour as drivers become more aware of the risks and are more motivated to drive safely,” says Jepson.
Improving safety at transport firms is a no-brainer, not only to reduce damage and downtime from accidents but also to help keep insurance affordable – and more companies are noting the material benefits of NZI’s Fleet Fit programme.
“We have seen a marked lift in general awareness and focus by our driving team, ultimately resulting in a significant reduction in frequency of incident-related events,” says managing director Blake Noble of Warkworth-based transport firm Transcon.
Another client with 80 light vehicles reports that drivers are responding positively to the individualised reports created through the system, with people who deserve praise receiving it, those who need encouragement to improve their driving behaviours getting constructive feedback, and those in between setting themselves personal goals to improve.
And yet, the use of GPS data and telematics in driving safety isn’t actually that new and had been viewed with scepticism in some quarters – what did NZI do to overcome the early teething problems sometimes associated with the technology to start achieving real results on the ground?
When this technology was first used as a tool to improve driver safety it focused on GPS speed and g-force activated braking and cornering events.
It has developed considerably over recent years with advances in mobile connectivity and AI capable cameras and sensors. This led to the development of systems that collect data for e-logbooks, pre-trip inspections, loaded weights, mobile phone use while driving, driver distraction and fatigue, and driver impairment.
There is also the use of electronic logbooks to monitor driving hours and rest breaks. This makes it easy for dispatchers to monitor compliance with work-time rules that would otherwise require a review of paper logbooks maintained by the driver.
The much broader range of data captured is one aspect of improvement, but another has been in marketing the image of such safety tools.
“It was considered by many drivers at the time as a tool managers used to spy on their drivers and punish them for speeding or being somewhere they shouldn’t be. The technology, and its use, was not communicated to the drivers very well and there was often little or no relevant feedback for drivers,” explains Jepson.
This has changed now, in tandem with the wider range of benefits that derive from such programmes.
“Fleet operators are more aware of the importance of regularly communicating with their drivers about the use of the technology and often use the data to positively motivate drivers to be safer on the road or reward them for achieving high standards.”
Provincial transport company Kiwitrans in Thames saw the benefits of positive engagement boost its bottom line significantly.
“With positive driver engagement and the right encouragement from management, Fleet Score has helped us to reduce our insurance claims costs by $100,000 in 12 months,” say managing director Dave Malanaphy.
While the volume of data has helped improve both trust and utility, the sheer amount of data generated sometimes comes with its own problems.
“Safety systems such as GPS and in-vehicle cameras can provide an overwhelming amount of data. Our customers often tell us they don’t know where to start to turn this into meaningful insight,” says Jepson.
This is where Fleet Score can play such an important role in rendering the data useful. GPS telematics information is condensed down into meaningful metrics and insights to inform management’s coaching discussions with their drivers, producing a score out of 100 to focus these efforts on drivers that need it most.
Speeding is one focus given that it is a key contributor to loss events.
“Anything that a company can do to reduce over-speed events will help reduce the likelihood and severity of loss.”
Fleet Score also reports on idling time which the customer can use to help monitor fuel efficiency and potential fuel savings.
“Our customers report back that this is incredibly valuable – one logging fleet we worked with reported substantial savings as a result of talking to the drivers about managing idling times in the forest. Another general freight carrier has incentivised drivers to improve their Fleet Score over a 12-month period and reports a reduction in insurable events and downtime as a result,” says Jepson.
In this way, the Fleet Score part of the Fleet Fit programme can help NZI customers to “cut to the chase” by analysing that data and putting it into reports by company, division and driver.
“This alerts operators to the areas they should focus on when coaching drivers and rewarding good driving practice.”
Normally, it would take a firm an inordinate amount of time to consistently collate all data into a format that easily summarises how well a fleet is performing in relation to speed limit violations and compliance. But every month clients receive overall company summaries that benchmark them against industry best practice and can be used to support insurance renewal discussions.
The overall performance summaries are dovetailed with performance reports for individual drivers, including those who demonstrate safe driving behaviours and others who may need to improve based on the frequency and severity of their speed limit violations and how they compare to their peers.
Jepson sees the field growing rapidly and with it, the potential benefits. Technology in the pipeline over the next five years includes fatigue management camera technology as standard option in new vehicles and the growth of connected vehicles that can communicate with road infrastructure, other vehicles, or pedestrians to share important safety information in real time.
“The rapid rate of change happening now appears unprecedented,” he says.
Established in 1859, NZI is one of New Zealand’s longest serving insurance companies and a leading provider of business insurance. NZI provides around 300,000 customers across New Zealand with the confidence to grow and be successful. As an intermediated insurer, NZI works with broker partners to give business customers specialist knowledge and expertise in areas including commercial property insurance, commercial motor vehicle insurance, construction insurance, corporate insurance, liability cover, marine insurance and rural insurance. NZI’s personal lines include car, home, contents and boat insurance. NZI is proudly backed by IAG New Zealand, the largest general insurer in the country.
