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Unlocking the value of telematics for the Transportation Industry

By using telematics data, businesses can identify issues that may lead to accidents, helping to improve fleet safety and lower insurance costs. Read more.

02/06/2025 · 4 minute read

Tens of thousands of people are injured and thousands more die in road collisions on Canadian roads every year. Aside from the human tragedy, the potential losses can lead to extensive risks for fleet owners, related to both vehicle repair and replacement costs as well as increased insurance premiums.

The potentially devastating impacts on drivers, other motorists, and pedestrians, together with the extensive repair and replacement costs, underscore the importance of fleet owners having adequate insurance in place. However, securing coverage at an affordable rate is often a challenge.

Data-driven decisions help improve safety, insurability

Telematics devices — such as dash cams and GPS trackers — can help fleet owners capture important data about their drivers’ performance that enables them to identify challenges and provide driver-specific training to improve safety. Further, data trends can be shared with insurers to demonstrate the result of risk management strategies intended to reduce incidents.

Programs like FleetConnect, developed by Marsh Canada in collaboration with Geotab and Intact Insurance, help fleet operators improve their safety practices and reduce accidents to ultimately lower their insurance costs. Further, the program uses advanced technology and data analysis to help insurers better assess and monitor a fleet’s risk profile, potentially leading to rewards for businesses that make improvements to their fleet safety.

Fostering a culture of safety

A major benefit of telematics systems and asset tracking technologies is the opportunity to address potentially problematic driver behavior and provide specific feedback and targeted training to foster a culture of safety and accountability and boost the overall efficiency of the fleet. Fleet owners using Geotab’s Safety Center, which provides a high-level overview of the fleet’s overall safety performance and benchmarking, saw a 5.5% reduction in collision rates within four months.

Navigating the challenges of rising insurance costs

The rising cost of insurance is a significant concern for fleet owners. Commercial vehicle owners are facing increased insurance premiums, largely influenced by a reduction in capacity within the marketplace due to unprofitability or limited appetite, coupled with strict underwriting guidelines. Some insurers are willing to walk away from potential clients if they feel there isn’t sound risk management in place.

The rise in claims frequency and severity in the commercial auto sector — largely due to distracted driving, increased traffic congestion, and escalating costs of vehicle repair and medical treatment — has also contributed to premium increases. As a result, many insurers are being more selective about the risks they are willing to underwrite and are placing greater emphasis on risk management and safety measures for fleet operations, which can be aided through the data-rich insights provided by telematics devices.

Some insurers are increasingly expecting their clients to have access to and use telematics data to improve safety and reduce risks. According to one report, more than 70% of fleets have reported that video solutions — such as in-cab cameras — helped improve driver safety. Businesses that embrace this technology can help position themselves as a better risk, making them more insurable. And while adoption is not a regulatory mandate, it has quickly become a market-driven expectation.

Data-driven improvements can help secure insurance discounts

Telematics and asset tracking provide valuable data that can help insurers assess the safety and risk profile of a fleet, which can help fleet owners improve their fleet’s insurability and manage their insurance costs. When telematic data is used to identify and address potentially problematic driver behavior, fleet owners can share safety improvement with insurers, potentially qualifying for insurance discounts.

While telematic technologies have been around for some time, insurers have often found it difficult to ingest and analyze the data to get a better handle on the safety of a fleet in order to provide a discount or even determine whether or not a fleet should be insured at all.

Insights derived from telematics systems can also help organizations manage claims following an incident. Telematics can provide critical visual information about the circumstances surrounding an incident, which can help fleet owners decide whether they should defend a case in court or limit potentially costly litigation.

Improving the safety of drivers and third parties, as well as reducing collision-related costs, is critical for fleet owners. By harnessing data from telematics, businesses can identify the challenges that could contribute to incidents and improve their fleet safety while reducing insurance costs.

Why Marsh

Our team of specialists can help businesses navigate the complexities of the insurance market, advise on market trends and risk management strategies to lower risk, and advocate for clients to find effective insurance options. Our insurance specialists can help you to stay up to date on insurance best practices and make proactive changes to mitigate potential risks, helping you create a safer and more secure work environment. For details about Marsh's specialized transportation insurance services, visit the Marsh Transportation page.

A version of this article first appeared on TELUS Business Blog on January 15. Dan Carroll, National Mid-Market Growth Leader, Manish Bissa, National Transportation and Logistics Leader at Marsh Canada, and Matthew Yeshin, Managing Director of Global Digital Cargo at Marsh Canada contributed.

Our people

Placeholder Image

Daniel Carroll

National Mercer Marsh Benefits Growth Leader

  • Canada

Manish Bissa

Manish Bissa

National Transportation and Logistics Leader, Marsh Canada

  • Canada

Matthew Yeshin

Matthew Yeshin

Managing Director of Global Digital Cargo, Marsh Canada

  • Canada

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