Insurance Carrier UBI and Telematics Vehicle Tracking Conference

TeleMaticsInsurers interested in promoting driver safety by telematics vehicle tracking, and UBI styled programs participated in a conference hosted by SafetyFirst Systems on November 6, 2014 in Morristown, NJ. Driver safety online courses and related topics were also addressed.

For more details — visit http://www.prweb.com/releases/2014/11/prweb12321887.htm (will open in a new window/tab)

Large_Trucks_Cover_Front-300x28730,000 road deaths from motor vehicle crashes annually is unacceptable. Insurers agree that preventing injuries and damages that result from commercial vehicle crashes is a priority.

Unfortunately, about 75% of all insured fleets operate without the benefits of telematics vehicle tracking, driver safety online course, hotline stickers or other critical fleet safety mechanisms. Of the fleets with telemtatics vehicle tracking systems, many struggle to find ways to translate mountains of data into urgently actionable follow ups with their affected drivers.

On Thursday, November 6, 2014, SafetyFirst hosted a conference in Morristown, NJ for representatives from fifteen insurers gathered from across the country. The group Quoteable quotediscussed barriers which prevent many commercial fleets from adopting telematics vehicle tracking, and what could be done to get a system installed in many more fleets to increase fuel efficiency, decrease carbon emissions, increase safety results and decrease the likelihood of injuries due to crashes.

Current estimates suggest that 75% of commercial fleet policyholders do not use telematics vehicle tracking in their safety program efforts, and are unable to monitor driver redlight cam picturebehaviors that lead to crashes such as driving excessively fast, tailgating and weaving through traffic. A greater adoption rate of this critical safety tool could save lives immediately. Insurers, as trusted advisers, have the ability to properly and professionally influence the adoption of this technology to reduce injury-producing crashes. SafetyFirst, as a supplier-partner to more than 75 insurance providers, offers a best-in-class solution that fits fleets of all types and sizes.

While not discussing any proprietary or sensitive strategies related to insurance carrier operations, the program facilitated discussion around ways to promote SafetyFirst’s telematics vehicle tracking to more commercial fleet operators in a reasonable and affordable fashion.

Comments from the audience included:

…received a clear definition of facts versus typical marketing hype about device capabilities and reporting options. The data set produced by the GO7 is very detailed if not a little overwhelming. With the help of SafetyFirst and Verisk Analytics, the underwriting team has begun to tackle the challenge of how to use the collected data within our organization… – VP Underwriting

A great crowd of expertise represented…provided good food for thought as our organization moves forward on strategy around telematics offerings” – Loss Control Manager

“Outstanding session!  Exactly what I was looking for today” – Chief Underwriting Officer

About SafetyFirst — Dedicated to reducing the likelihood of commercial vehicle crashes and the costs associated with them, we provide a complete range of driver safety services to the insurance industry for the benefit of their respective policyholders. Programs include training, hotline reporting, DOT compliance, automated MVR profiling, and more.

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Evolution of Driver “Training”

Another traffic picRoughly 90% of all vehicle crashes are the direct result of choices, attitudes, and habits of drivers while behind the wheel.  They may choose to drive impaired, or they may choose to speed, text while driving or make other fundamentally risky decisions.

Historically, society has tried to adjust for these choices in several ways:

  • Improving the design of vehicles to make them better protect occupants in the event of a crash, and to help drivers have more control of the vehicle in various circumstances so that they might avoid some crashes
  • Instituting standards for road design and signs to make it less complicated to drive
  • Improving post-crash medical response to help people survive crashes
  • Providing education to drivers to help them understand the possible consequences of their driving so that they might exercise greater caution in handling their vehicles

This post deals with the evolution of driver safety “training” or education efforts.  Early driver education programs included personal communications (word of mouth) between drivers and later became written documents and even short motion pictures.  The documents continue to this day as state government driver manuals for both new motorists (driving for first time) or for drivers who are applying to become commercial drivers (i.e. CDL manuals).

Movies, videos, CDs, DVDs, and online presentations represent the conversion of those SafetyZone-LMSwritten documents (content) into a captivating medium that can better illustrate common scenarios encountered on the highway.  Sometimes it is much easier to show someone a concept than to try and describe it in words.

Early education efforts focused on two underlying models:  Intellectual Awareness (discussing the details of an issue) and soliciting an Emotional Response to trigger a change in habits:

  • Intellectual Awarenessan assessment of issue, how it occurs, what contributes to it happening and suggestion of practical responses to either avoid that issue or cope with the consequences of the issue.
    • An example is describing how speeding robs a driver of time to react, reduces distance to brake and increases the energy involved in a crash; therefore, slow down to buy time to react, stop and reduce the consequences of the collision that may occur.
    • Pros/Cons – this is a great way to help establish a foundation of important knowledge and understanding of the risks of driving, but it depends on holding the attention of the audience and whether they understand all of the details being presented.  It can become dull for those people who are not passionate about safety issues – possibly causing them to miss the message.
  • Emotional Responsemany people, especially over the age of 21, become set in their habits and mindset unless an emotional event triggers self-reflection and ignites a willingness to change in response to a tragic or shocking circumstance.
    • An example would be the dramatic reenactment of a crash on screen.  This may trigger a strong emotional response from the graphic depiction of the actors being hurt or killed in the scenario.  A presentation of a brief learning lesson helps redirect the learner to want to change their habits in response.
    • Pros/Cons – not everyone responds the same way to emotional stimuli.  Not everyone will identify with the “victims” in the same way.  Some may reject the scenario as unlikely to happen to them for some reason.  Others may be frightened of the consequences but fail to grasp the message on how to avoid that scenario.


Within the past twenty years, new models have emerged to engage drivers.  These models seek to obtain a personal commitment from the audience, or to influence the audience into a new perspective on a common issue especially where there is a general misconception of the immediate threat presented by the target behavior or habit such as texting while driving (Social Norming).

  • Personal Commitment Solicitation is an effort to make the audience see “what’s in it for them” or how issue could affect them unless they commit to self-monitor (or adjust) their own behaviors to avoid issue consequences)
    • An example would be the presentation of a series of reminders about how crashes happen from attitude, choices and habits with a strong, emotional discussion of the potential consequences and a final, direct appeal to the audience asking that (based on the presentation) make a personal commitment to change habits (typically two or three specific commitments).
    • Pros/Cons – this sort of presentation isn’t designed to set a foundation of “how to drive”, but does highlight the consequences of poor choices and asks for a commitment.  There’s no way to assure that a commitment will be made, but this goes a step further than merely presenting an educational session and stopping the presentation.

Tailgating Preview – Commitment from SafetyFirst Systems on Vimeo.

  • Social Normingmany people, especially younger people (teens, young adults) hold inflated perceptions of reality (i.e. “crashes happen to other people – not me”, “texting while driving isn’t such a big deal since I do it all the time and have never crashed”, etc.) The approach of social norming is to counter misperceptions and help the audience adjust their perception of the true situation (people die from texting while driving, etc.).
    • An example would be to demonstrate how absurd it would be to translate our attitudes while driving into other social situations in order to elicit a response from the audience that their habits must change.
    • Pros/Cons – while entertaining, it may not convince some audience members that they ought to change habits.

…OR…

SUMMARY

Raising safety awareness, convincing drivers of the need to “want to” change and reminding them of the risks they take while behind the wheel are good efforts to reduce the risk of crashes.  Driver education is only one part of the program, but it can be an effective part when different methods are used for different audiences (young or old, seasoned or novice, etc.)

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Benchmarking Violation Data

Atri 2011 coverIn 2005 and 2011, ATRI provided a ground-breaking study of the connection between violations and increased crash risk (Click Here).

Having studied more than a half-million driver records, the analysis was incontrovertible and carries powerful implications for driver safety supervisors, managers and directors.

In short, when a driver receives a violation, the likelihood of a crash also goes up by a specific factor.  

We’ve also seen a connection between tighter MVR profiles and decreased crash numbers:

“As recently reported at a fleet safety conference, two similar fleets had chosen to use the same standard for MVR review — exclude violations greater than 36 months old and allow for a combination of three violations and one preventable crash before suspending driving privileges.  One of these fleets tightened their standard to two violations and one crash during the most recent 24 months and saw a five point reduction in collisions (from 22% of their fleet vehicles involved in a crash per year to 17% of their vehicles involved in a crash) and $2 million in savings.”  (click here for full coverage)

Now our question to progressive fleet teams is this — are you benchmarking your driver profile results against national trends in violations to assess relative crash risk?

Violatios Table

Consider this table (above) and how your individual drivers stack up against national averages.  IF your drivers have a greater share of violations than the average, what would you do to step up your performance monitoring or refresher coaching?

  • Could this data be used against you in a Negligent Supervision lawsuit?
  • Is your defense going to be proactive and demonstrate that you actively monitor this data and assign coaching, education, monitoring resources or to claim “we didn’t know“? (not knowing is never a realistic defense)

If you’re using an automated MVR solution to pull in MVR data and profile it, you should be considering:

  1. whether the ACD code tables are up to date (many providers haven’t updated their code lists in years and can’t even post a texting violation properly!)
  2. whether your data can be exported to spreadsheet for analysis against national records like the table presented above, or whether your provider can automatically provide a comparison on a “driver-by-driver basis” against such public data
  3. whether your MVR profiling efforts should include other proactive, leading indicators of performance such as GPS alerts, how’s my driving alerts, or even camera in cabin video analysis.
  4. how you compare actual MVR results to your own loss data to validate the ATRI study and take action on “at-risk” drivers to reduce collisions
  5. how to link your MVR (ACD Codes) to refresher training modules to document immediate action taken on all drivers (who show a change in results) each time their MVR is obtained.

Of course, it may be easier to simply use our plug-n-play E-DriverFile system, Safety Hotline Program and “SafetyZone” LMS to handle these issues for you.  We work with the nation’s largest fleets (of CMVs and non-regulated vehicles, too!) to help manage risk, safety and results.  We also maintain an “in-network” system of relationships with more than 75 insurance providers who use our services with their select, targeted clients.

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Hidden Liabilities for Fleets

Wayne Smolda, President of CEI, offered the following provocative thoughts on his blog (bold added by us for emphasis):

On balance, technological advances are proving to be beneficial to fleets. Vehicles Ediscoveryare safer than ever before and get better fuel economy. When used properly, wireless communications are also helping fleets and their drivers to be more productive in such ways as plotting more efficient routes and enabling drivers to stay in closer touch with their organizations and customers. But there are two applications of wireless communications in the realm of traffic safety that I believe are having a potentially very nasty unintended consequence.

The applications are telematics and traffic cameras, and the unintended consequence is an all-but invisible increase in fleet liability…such systems are also capturing data that could reveal that some drivers are habitually speeding…the data being captured makes it possible for fleets to identify high-risk drivers. Yet, how many fleets are actually converting that data into actionable information…? I submit that many are not – even though the data resides in their computer systems.

A similar challenge comes from the proliferation of traffic safety cameras. Camera-redlight cam pictureissued tickets are sent to the registered owner of the vehicle, but in most cases that is the fleet, not the driver. That means that most of the violations don’t get recorded on one of the major tools fleets use for identifying high-risk drivers, their motor vehicle records. Unless fleets find a way to connect traffic camera violations to the drivers responsible, they are missing another opportunity to use the data they have to identify drivers they ought to reconsider trusting to operate a motor vehicle.

The very real gap in data leading to “compassionate interventions” to address safety issues can be easily overcome by using SafetyFirst’s “Safety Hotline” program and our “E-Another example of a blended scoreDriverFile” system.  Both programs capture telematics alerts AND automated traffic enforcement violations to present on a BLENDED RISK SCORE REPORT.

In fact, we’ve previously published an article showing a one-year decline in GPS speed alerts of 600% based on using our coaching processes to curb the risk taking behavior BEFORE it led to bigger problems.

YOU set the time frames and the score weighting for your own fleet operation, and you can also generate “violation only” scores versus “blended scores” — where one can be used to assign non-punitive training (via our new “SAFETY ZONE” learning management system with the industry’s newest, most provocative refresher modules, and the other can be used for Human Resources (i.e. disciplinary) purposes.

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Do you have an unsafe driving remediation plan?

Motor Carriers Guide to ImprovingUnsafe driving includes risky behavior such as speeding, improper lane change, aggressive driving, and other types of  dangerous activity.

Recently, a motor carrier was placed out of service due to a range of reasons (Click Here for Article), but one of those reasons that caught my eye was “Widespread instances of drivers operating commercial passenger vehicles at speeds in excess of posted speed limits.

This made me wonder how the auditors arrived at this conclusion.

  • Toll receipt auditing?
  • GPS records review through “e-discovery”?
  • EOBR records or driver logs that showed getting from point “A” to point “B” in far less time than would be considered reasonable?

Unsafe CSA sheetRegardless of the mechanism to arrive at this conclusion, the immediate defense by the carrier should be to explain how they monitor and “control” drivers to avoid unsafe behavior or risk taking while behind the wheel.  Additionally, if those controls are deemed inadequate by the auditor, the fleet should be ready to prepare a remediation plan to curb the aggressive driving and keep it under control going forward.

If you use GPS or other systems that capture unsafe driving events (i.e. camera recorders, etc.) how do you measure performance violation rates?

  • What’s an acceptable level of speeding, hard braking, rough cornering, number of recordings per week per driver, etc?
  • How do you benchmark that against other operators to see if you’re above or below the norm for your type of operation?
  • Is your rate going up or down?
  • Do you have a plan to coach or re-train drivers when they exceed thresholds?
  • Is that documented and is it followed (how would you prove that it’s followed?)
  • Does your vendor help you solve these issues with reporting from their system and bench-marking against other clients?

At SafetyFirst we help our clients understand the metrics of our unsafe driver identification and coaching-remediation program.  We provide:

  1. live, statistically relevant bench-marking by SIC code,
  2. training for BOTH the supervisor and the driver (one on how to coach/counsel and the other on the consequences of risk taking while behind the wheel)
  3. The industry’s ONLY driver training program for excessive speed (GPS alerts)
  4. “paper trails and/or electronic confirmation” of activity in case of audits, and
  5. these capabilities for about 1/100th of the cost of the GPS or camera systems.

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Resources

smc 1The Safety Management Cycle (SMC) for the Unsafe Driving Behavior Analysis and Safety Improvement Category (BASIC) helps carriers (and drivers!) evaluate existing processes over six areas including:

  1. Policies and Procedures
  2. Roles and Responsibilities, 
  3. Qualification and Hiring,
  4. Training and Communication, 
  5. Monitoring and Tracking, and
  6. Meaningful Action

By reviewing each of these areas, a fleet operator has the chance to spot gaps in management practices, shore up communications plans with drivers and test to make sure that policies are being followed and enforced.

We recommend you investigate these FREE resources from FMCSA for developing a plan to address unsafe driving before an audit team considers your operation for review:

Much of safety work is mundane and un-glamorous, but when executed consistently, can be highly effective at minimizing injuries, fines and violations.  Similarly, it can help bolster up-time, productivity and profitability.

Safer driving starts with a safety-aware, safety-vigilant driver, and this comes from managers who will compassionately intervene when performance issues arise.  Coaching shows concern when it’s focused as a “conversation about safety” instead of a head-butting “confrontation about blame/fault“.  At least that’s our opinion – how about you?

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How IS my driving?

UNFI on the roadBased on industry estimates there are several million commercial vehicles (ranging in size/type from SUVs/Vans and Pickups thru tri-axle dumps and tractor trailers) using some sort of “how’s my driving” placard system.

Some of these are internally developed and executed hotlines — where the observer is actually calling the fleet operation directly.

However, most of these hotlines are through a third-party specialist organization that handles all of the administration of:

  • Processing calls on a 24/7/365 basis (instead of dealing with voice mail during “off hours”)
  • Dispatching reports on a timely basis to the correct location supervisor so that he/she can coach the driver promptly
  • Delivering professional driver training materials to help in the coaching process — to focus on a safety “conversation” instead of a disciplinary or fault finding “confrontation”
  • Providing training to supervisors on “how to coach” productively (the goal is to influence drivers to look at their own behaviors and want to be safer tomorrow, not “prove” someone did something wrong)
  • Supporting a “close the loop” process — to track the status of each and every report
  • Providing simple, but valuable management reporting proactively BY EMAIL
  • Providing supplemental driver training modules for the benefit of ALL your drivers (keep them all safety minded).

Did You Know?

  • Eighty percent of all drivers NEVER get a complaint call report during their career?
    • Further, of the twenty percent who do get reports — half get ONLY one and NEVER get another.
    • However, the final group of drivers get call after call after call.
  • Typically these multiple reports focus on common themes — tailgating, following too closely, space management issues, speeding, aggressive driving, etc.
  • Often, the issues raised in the call reports mirror the past violations on the MVR of the affected driver.
  • Sometimes, the call reports actually forecast an imminent collision — in other words, ignore the report and waiting will result in either a violation or preventable crash.

Aren’t these just crank calls?  Motorists with an ax to grind?

  • Our clients investigate each report — even if it’s on a “star” driver or an unusual situation.  They find that only one or two reports out of every hundred are unable to be validated or were not helpful to their own investigation and coaching process.
  • If the reports were from crank callers, the callers would be picking trucks randomly out of the crowd.  The call statistics don’t show a random distribution of calls.  We see 80% of the drivers NEVER get a call, 10% get one (and never another) and 10% get multiples.  So if it’s all made up, why do some drivers get almost all of the reports?
  • Interestingly, the drivers who get multiple call reports have the same sticker as all their peers.
    • Their sticker isn’t larger or bright neon green or offering to pay a bounty for anyone who calls — so why do they get more reports than their peers?
    • Behavior, habits, risk taking, complacency…..call it what you may, but this represents a chance to HELP this driver avoid any future tickets, fines, or crashes.
    • All it takes is a management team willing to have a conversation, sit him/her down for some training, and keep an eye on them in case the training was ignored.

Isn’t this “old fashioned” and being replaced by Hi-Tech?

  • Just because something’s been proven effective and has been around for thirty years doesn’t mean it stops working.
    • Pizza has been on menus for much longer, but it’s still popular.
    • Baseball and Football have been around much longer and they’re still popular — why would something become ineffective just because it’s been around?
  • It is true that there are hi-tech toys and gizmos out there to monitor drivers.
    • They focus on location, idle time, on/off route, raw speed, harsh braking, harsh cornering, aggressive swerving, and harsh acceleration.
    • ultratrack_1_smThese systems can never detect running a red light, speeding through a school zone when children are present, passing a stopped school bus, discourtesy to other drivers, littering, speeding based on “at the moment” conditions of weather, traffic, etc. (and more).
    • They’re good at what they offer and may provide a fleet with great data; however, separating the mountains of “background noise” data from the “urgently actionable” issues requires a full time analyst who is not provided with the system.
    • We already incorporate telematics alerts into our coaching system.  One client recognized a 600% reduction in speeding behaviors by linking the two systems! (Click HERE)
    • These systems are roughly 100 times more expensive than “how’s my driving?”

Capturing Near Miss Data

People who call in a report about risk taking behavior typically do so because they were frightened or angered by what they saw.  Think about your own experience on the highways — you’ve seen risky behavior, but what would motivate you to actually place a call report (hands free!)?  Something that was “almost” a crash, but was, instead, a “near-miss”.

Rarely do we receive calls about trivial situations — typical calls deal with high speed merges, tailgating, weaving in traffic, and other situations that could lead to crashes featuring bodily injuries (not just physical damage).

Because our system self-selects the most egregious behaviors for reports, the number of reports is quite low — only two or three reports per month (per 100 vehicles).  However, the importance of each report is very high.  This is the opposite of telematics systems that produce mountains of paperwork and you’ve got to locate the needle in the haystack.

Here’s another way to look at this approach:

Pyramid 2011 for blog

 

Closing the Loop

Our clients have an aggregate close out rate of 80% — that means almost every report is investigated to the point that a definitive management action has been instituted.

Another example of a blended scoreFurther, several studies have conclusively shown that this coaching process (without video training or online training) has been the key to unlocking significant crash reduction results (10–30% fewer crashes than without the hotline program in place.)

So, now that we’ve been producing brief (5-7 minute) reminder videos for our online Learning Management System (LMS) we expect even stronger loss reduction results.

The first five remedial/refresher videos were produced in both English and Spanish (for use with non‐regulated fleets), and cover the following topics:

  1. Tailgating
  2. Improper Lane Change
  3. Honoring the Right of Way
  4. Driving Too Fast for Conditions
  5. Running Red Lights / Stop Signs

These five topics cover roughly 80% of all Motorist Observation Reports (MORs) generated at SafetyFirst, and a similar emphasis on moving violations.

We are in the process of releasing additional topics based on MOR trends, client recommendations and the level of enthusiastic adoption of the videos within our client base.

As of September 1, 2013:

  1. Exceeding the Speed Limit (dealing with GPS alerts!)
  2. Aggressive Driving
  3. Distracted Driving (Cell Phone/Text)
  4. Drowsy Driving
  5. Faulty Equipment
  6. Drug/Alcohol Use
  7. Driving Too Slowly for Conditions (Impeding Traffic)

Summary

Driving Too Fast PPTWhether a regulated fleet or not, our program offers a range of benefits worth considering — it’s very low cost, includes a monthly training package, urgent alerts about near miss events, coaching and re-training emphasis (instead of fault finding or blaming) and the ability to run your drivers through very brief, but highly motivational online training modules.

We’re already the industry leader in driver safety programs for:  Arborists/GreenCare, Social Service Providers, Municipalities, Pest Control, HVAC, Electrical Contractors, Beverage Delivery, Telecommunications, Food Processing and Distribution, Specialty Contractors, Construction, Auto Parts Wholesale and Retail, Retail (Direct Delivery) and more!

Why not check us out?

1-888-603-6987

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Profiling Driver Event History

All motor fleet operations generate or collect various data on their driver’s performance:

  • Violations/Tickets
  • How’s My Driving Alerts
  • Crashes (at-fault, preventable, etc.)
  • Telematics (GPS, EOBR)
  • Driver Logs
  • Toll Receipts (EZ Pass, etc.)
  • Automated enforcement violations (which come direct, not through MVR data)

Additionally, fleets track information about other types of driver “events”:

  • Completion of training classes (online, classroom, tailgate talks, etc.)
  • Completion of year or years with no crashes (ie. Awards)
  • Internal Company Violations
  • Customer Complaints
  • Supervisory Observation Reports

Historically, each of these data sources have been in their own “silo” or “compartment” — but what if we could get all of this data together in one spot?  We could:

  • Another example of a blended scoresegment all drivers by relative risk taking behaviors
  • segment all drivers by crash risk
  • segment all drivers by age, tenure, training completed and then compare their crash histories to build a profile
  • determine which factors precede a collision (i.e. how many incidents, which types of incidents, etc.)
  • assign a predictability score to each driver based on actual data trends and schedule them for additional coaching or training to modify their habits and risk taking.

More simply put, we’re trying to leverage data to build awareness and reduce crash likelihood.

Fantasy?  Millions of dollars needed?  Nope. It’s real, and it’s happening right now among some of the nations largest fleet operators.

Imagine searching through 6500 driver records to find the “at-risk” needles in the haystack. Now imagine doing that with the push of one button.

One of several SafetyFirst clients implemented our E-DriverFile system three years ago on a pilot basis, but then rolled it out to their entire corporation.  This enabled them to cut the number of “at-risk” drivers in half within the first year simply by targeting their current training and supervisory resources on those people at greatest risk of becoming involved in a collision?

Pyramid 2011 for blog

Further, our new, online safety training modules are laser cut to fit specific issues surfaced by our How’s My Driving Hotline and our E-DriverFile profiling system.  These modules zero in on those risk taking habits, and remind drivers that there are serious consequences to the choices they make when behind the wheel.

At five to seven minutes each, they represent the next generation of online learning — focused, sharp, brief, emotive and able to convince drivers to “internalize” the need and desire to driver more safely — to make wiser choices — to take fewer risks.

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To learn more, call us toll free at 1-888-603-6987

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