Capital Equipment News October 2017

TRANSPORT & LOGISTICS NEWS

Telematics data set to reinforce positive driver behaviour Experts across the globe are hailing the economic power of ‘big data’. Articles and opinions abound in the media about how commerce is changing thanks to the ability to analyse massive sets of information. But big data is not the only force impacting business models and consumer behaviour. Data in general, in fact, is fast altering how we approach everything – including how we drive.

Telematics is opening up new options for consumers and service providers in areas such as the insurance sector.

Telematics – the data received from track- ing devices within vehicles offers a good example. This data has long helped commer- cial fleet owners maximise the value of their operations, and its role in our economy is expanding fast. “Traditionally, telematics has focused on the location of the vehicle and the driver within commercial fleets to improve pro- ductivity and to reduce cost. But the range of application is evolving very quickly,” says Andre Ittmann, CEO of Cartrack South Africa. “Telematics data is proving to be particular- ly powerful in sparking new approaches to things like insurance.” Global telematics research anticipates that by the year 2030 nearly 50% of the vehicles on global roads will be insured ac- cording to usage-based policies. These pol-

er positive spin-off: more local drivers moti- vated to achieve responsible on-the-road be- haviour. In a country where road deaths are a huge concern, this could be an important national development. “Financial reward is potentially a valuable motivation to change behaviour for the bet- ter,” adds Ittmann. “Often, in fact, this can succeed where warnings and threats fail. As usage-based policies become the norm, the country could well see an improvement in driving standards in general.” Looking beyond commercial fleet manage- ment, ordinary business owners will also in- creasingly be able to use the insights from telematics data to incentivise drivers to im- prove performance, and reduce operational costs in the process. b

icies rely on telematics data to monitor the driver’s behaviour on the road. Better drivers pay lower premiums, while drivers who are potentially more hazardous on the road will see their on-the-road attitude reflected in their monthly insurance bill. Usage-based insurance policies are good news for insurers and consumers, because they offer a risk framework that is at least partially under the consumer’s control. This is in marked contrast to the traditional age and gender devices used by insurers to price risk, where the consumer has little influence on the price of cover. In challenging economic conditions, many consumers will be relieved to know that they can take practical steps to reduce premiums by driving well. In this context, telematics data has anoth-

CAPITAL EQUIPMENT NEWS OCTOBER 2017 37