Skip to content
Login
Help

8 Steps to Implement Telematics for Commercial Auto Insurance

Back to Blog

The adoption of telematics is revolutionizing the management and pricing of commercial auto fleets among insurance companies. Telematics offers insurers a number of capabilities and benefits, including better-matched rates and risks, driver behavior changes and risk mitigation. With 82% of commercial insurers now having some level of adoption within their organizations, there’s a highlighted urgency for insurers to differentiate their offering and implement telematics. 

And due to the intangible nature of telematics and its vast amount of data, insurance companies recognize there’s a knowledge gap in launching a telematics program effectively. Our telematics experts have outlined eight actionable steps to implement a telematics program aligned to your company’s strategy. 

Commercial Auto Insurance Telematics Checklist

1. Identify 2 to 5 Early Adopters and Establish Goals

  • Start with customers already leveraging telematics or those interested in a pilot.  
  • Target segments that are known for higher telematics adoption, such as transportation fleets.   
  • Example goal: “Enroll 50 telematics-enabled vehicles in a pilot program during the first quarter to validate initial ROI”.

2. Collect and Normalize Telematics Data

  • Decide whether you’ll rely on direct Telematics Service Provider (TSP) integrations or a third-party aggregator.  
  • Standardize fields like speed, mileage and harsh-braking thresholds into a standard format.  
  • If you choose not to work with a telematics aggregator, limit your scope to one to two TSPs to reduce complexity. 

3. Provide Essential Insights Back to Clients

  • Maintain early enthusiasm by delivering simple, actionable reports such as monthly driver scorecards and risk profile updates. 

4. Highlight Unfamiliar Information to Clients

  • Recommend targeted interventions like training or route rescheduling for fleets indicating higher risk metrics.  
  • Show how specific routes or times of day drive up crash rates (if applicable). 

5. Use the Data to Identify Internal Systems for Integration 

  • Share early insights and sample data sets with process design teams who support underwriting, claims, etc. to explore practical applications within existing processes.   
  • Identify opportunities where data can enhance workflows and determine how telematics data will flow into policy admin or claims systems.   
  • Decide on scope: underwriting dashboards, claims triage alerts and more. 

6. Create Mechanisms for Scale

  • Establish a method to securely collect client TSP credentials (username/password, tokens, oAuth, etc.).  
  • Ensure robust TSP connection maintenance and data enrichment.
  • Expand internal data feeds and client-facing metrics as volumes grow.

7. Build Market Adoption and a Marketing Plan

  • Engage brokers and agents by equipping them with success stories.  
  • Emphasize ROI and safety improvements to attract new fleets. 

8. Launch the Program and Share the Impact

  • Roll out beyond initial participants and refine the approach as feedback is received.  
  • Publish success metrics such as “Commercial policyholders in our telematics program reduce claims by 20%”. 

Insurance Success with Telematics Aggregation

Now more than ever, commercial insurance companies have the opportunity to implement a scalable telematics program. By transforming data into actionable insights, insurers can overcome their traditional hurdles of telematics adoption.  

Aggregated telematics data solutions pave the way for more accurate risk assessment and personalized policy offerings. Embracing this integrated approach is a necessity in today’s landscape. 

Learn more about SambaSafety’s approach to telematics data aggregation and download our comprehensive telematics implementation guide for a more in-depth look at key considerations.