Reducing accidents & keeping premiums low
Written by Kateryna Kononenko
Modern insurance solution is not just a utility bill. It’s an investment with the power to deliver business results.
When SJA Logistics - a delivery service partner for Amazon - joined our Risk Management Academy, we approached our collaboration with a singular goal to help them optimise their fleet performance and, as a result, reduce the business’s operational costs.
Identifying the challenge:
For SJA Logistics - timely service is key to their business success. So, ensuring their drivers are always on the road and keep moving is essential.
This is a case, where timely delivery above all becomes a reason for increased risk and eventually increased rate of accidents.
As a result of the number of claims, delayed claims reporting time, and unsustainable loss ratios - SJA was running a risk of increasing premium.
We wanted to help SJA, and their insurance broker, Aston Lark, tackle this challenge by giving a clear fleet performance picture, using the data-backed fleet insights; and enable them to optimise their fleet performance.
Our approach to the challenge:
Our Risk Management Academy provides you with insights on fleet performance, giving key action points to inform driver training, improve behaviours and make safer trips.
When analysing SJA Logistics’ fleet performance - we focused on identifying the most high-risk vehicles and helping the business improve their risk profile through bringing actionable data insight back to their drivers.
Insights that drive change
We’ve enabled SJA Logistics to get an in-depth look into their fleet’s mobility and their drivers’ behaviour areas of improvement. Our telematics data allowed them to see granular profiling of their drivers based on their driver score (100 being the highest) and risk data.
At the same time, informing SJA’s field managers of the individual driver’s behaviour and the progress made enabled the business to focus their efforts on those who needed additional training the most.
What SJA Achieved:
Outcome #1: Manager-driver talks established
SJA Logistics provided the driver performance insights to their field managers and established regular performance conversations with their drivers. Performance transparency enabled the drivers to improve and track their progress, and the fleet’s overall risk profile started to improve.
Outcome #2: Best drivers incentivised
SJA Logistics rewarded their top-performing drivers with Amazon vouchers, encouraging good driving behaviour on the road.
“We shared the performance with drivers and congratulated top drivers on the WhatsApp group so that everyone could see”
- Vicky East, Audit and Compliance Manager at SJA Logistics commented.
Outcome #3: Knowledge gained
By getting a 360° view of the fleet performance and having regular in-depth conversations with our Zego team around the insights, SJA gained a deep understanding of their overall fleet performance.
In addition, SJA became aware of how individual driver behaviour can negatively affect the business’ loss ratio, the available methods to reverse that, and increase the fleet’s operational effectiveness.
“We’ve been able to get data on how our drivers are driving, accelerating, sharp braking and cornering and seeing the impact of that in damages on the vans”
The Ultimate Operational Results:
After 3 months at Risk Management Academy, SJA showed some phenomenal results as a result of targeted driver education and engagement.
1. Claims Number*
Reduced by 84.6%. Meaning that the number of accidents and vehicle damages significantly dropped resulting in reduced claim numbers.
2. Claims Frequency*
Reduced by 18.1%. Meaning that the number of claim-reporting vehicles dropped by nearly one fifth.
3. Claims Costs*
Reduced by 8.7%, which will positively impact SJA Logistics’ insurance price at renewal.
*the results are valid for the month of June 2022
Wrapping it up:
Not being able to see granular details of the fleet performance (due to lack of tools) was a major contributor to SJA Logistics’ struggles.
Once we equipped the business with our insight-driven technology and guided them on the path of driver education - the business has achieved not only their fleet performance goals (reducing the accidents and improving driver behaviour) but also significantly improved their risk profile, which lead to lower premiums.
“Now that we have these tools and the ability to get info from the trackers, it’s really good. If we didn’t have anything then, I think that the driver behaviours could go downhill and lax again”
Learn more about our behaviour based insurance and risk management here.