
Put simply, a telematics solution promotes the sharing of data between a fleet of commercial vehicles and a central location. Typically, data is gathered using telematics devices - such as GPS technology, sensors, mobile applications, dashcams and vehicle engine diagnostics solutions - that are used or installed in each vehicle in a fleet.3
These devices gather helpful insights regarding driver behavior, trip information and vehicle health, storing the data temporarily before transmitting it back to a central hub where a business can analyze it using software. Telematics devices can gather a host of useful information on a business's behalf:
Telematics solutions are incredibly versatile and can be deployed in cars, cargo vans, tractor-trailer units, buses, heavy equipment and specialized vehicles such as construction and farming equipment.
Telematics can benefit a business's operations in many ways6 :
Considerations to keep in mind
Telematics offers businesses an unparalleled amount of data. While this is one of the biggest strengths of these solutions, it's also one of its greatest challenges. Insights gathered from telematics are just that - insights. The data is useful only if a business leverages it in meaningful ways. In some instances, businesses that implement a telematics solution may be overwhelmed by the sheer amount of data and unable to use it effectively. However, not all telematics solutions are overwhelming. Many modern telematics solutions are designed to be easy to implement, ensuring businesses are not overtaxed by the technology. Telematics solutions can fit various needs, from the smallest businesses to the largest trucking companies.
The organizations that best utilize telematics solutions are the ones that adopt and integrate them into their operations in ways that meet their individual needs. They use the functionality and data from telematics to make operational changes, focus on improving driving behavior and increase productivity.
1 Large Truck and Bus Crash Facts 2017," www.fmcsa.dot.gov/safety/data-and-statistics/large-truck-and-bus-crash-facts-2017#A2 (May 6, 2019).
2 "6 Surprising Factors Affecting the Cost of Commercial Auto Insurance," (May 2, 2017).
3 Fleet Telematics Explained," eroad.com/fleet-telematics-explained/ (accessed March 2, 2020).
4 "What is Telematics?" www.teletracnavman.com/resources/resource-library/faqs/what-is-telematics (accessed March 2, 2020).
5 "Why companies are adopting a telematics system for fleets," smartrak.com/why-companies-are-adopting-a-telematics-system-for-fleets/ (accessed March 2, 2020).
6 https://eservicesco.com/2019/09/17/10-reasons-fleets-should-use-telematics/
To examine the impacts of distracted driving and to learn about ways your drivers can stay safe on the road, review these resources. You can also learn more about Nationwide's commercial telematics solution. If you're an agent interested in growing your commercial book of business, please go to nationwide.com/agents.
Tony Fenton, Vice President of Commercial Lines Underwriting and Product
Tony is an experienced professional in the leadership of multi-line commercial property and casualty operations. He started his insurance career with Allied in 1997 as a Commercial Lines Intern and has held roles of increasing scope and responsibility, including Underwriter, Production Underwriter, Manager, Underwriting Director, and ... several Officer-level roles at both CNA and Nationwide. As Vice President of Commercial Lines Underwriting and Product, Tony is responsible for driving operational performance through underwriting leadership and strategic alignment between cross-functional units. Tony's education includes a Bachelor of Science in business management with a marketing specialization from Simpson College. He is also active in many nonprofit organizations, including United Way and as a Board Member for the Idaho Surveying and Rating Bureau. Read more
Pete Frey, Commercial Lines Telematics and Connected Business Director
Pete leads Nationwide's product strategy and program development for both telematics and the internet of things. That includes connected fleet, mobility, innovation, product development and usage-based insurance as it relates to a Commercial ... Lines connected business framework. He began his career in the automotive industry, followed by more than 20 years in insurance technology. In addition to working for two major insurance carriers, he has also developed products for service providers. Pete has a bachelor's degree in communications from the University of Texas at El Paso, and a management certificate in technology management and leadership from the MIT Sloan School of Management. Read more
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