Telematics and its application in the commercial auto insurance industry are at an inflection point. After fragmented adoption and cautious implementation, the technology is starting to prove its value across commercial fleets and insurers.
Our 2025 Telematics Report: Uncovering Market Dynamics and Technology Trends, reveals a striking paradox: safety is now an overwhelming justification for telematics adoption; however, its data that could amplify those safety outcomes remains locked away, unshared between parties who need it most.
This disconnect between commercial auto insurers and policyholders implementing telematics isn’t just a missed opportunity; it’s now a barrier that is costing both parties millions in unrealized value.
This article examines recurring themes from our annual telematics report and showcases the opportunities available to insurers and their fleet policyholders.
Driver Safety is a Priority for Telematics Adoption
The data tells a clear story. In 2025, 88% of fleets report using telematics primarily for safety reasons, overtaking asset tracking by 14 percentage points. This shift to proactive risk management redefines telematics as a simple “nice-to-have" as a pivotal cornerstone of how modern fleets approach driver safety and risk reduction.
Why? It works. Fleet survey respondents who combine telematics with targeted driver training reported an overall 68% reduction in crashes. This stark improvement in driver safety isn’t blind to insurer counterparts either; nearly sixty percent of insurers reported reduced loss ratios tied directly to telematics programs.
Yet, despite this proven ROI, the industry remains caught in a communication gap that prevents both sides from capturing the full value of their investments.
The Telematics Data Sharing Gap
With fleets embracing telematics for safety, our report shows that 70% of them aren’t sharing their data with their insurers. The leading reason isn’t data privacy either. We asked fleets why they don't share their telematics data, and 79% said no one asks them.
The data exists. The technology is deployed. The value is proven.
But the conversation isn’t happening on either side.
Among the 30% of fleets that do share data, the motivations are telling. Many fleets report that cost savings matter, with sixty-five percent citing better insurance rates as a result of sharing. Other fleet respondents noted that active risk management support from their insurer is a significant motivation for sharing their data.
They want a partner who can help them use, understand and act on their data to become safe operators. This finding should fundamentally redefine how insurers approach telematics programs. Pricing incentives alone may not unlock data sharing at scale, but helping fleets reduce their risk through ongoing collaboration, insight and support? That’s the actual value.
And although insurers aren’t asking for data, there’s an equal responsibility on fleet policyholders who have telematics data to approach their insurers to ask the big questions.
- How can I make my drivers safer to lower our premiums?
- What rewards or discounts can I see for being a safe fleet?
The communication door swings both ways, and although insurers aren’t asking, there’s an opportunity for fleets to approach them to get what they need out of their telematics data.
Insurers Are Moving on Telematics Data, Slowly
On the insurance side, adoption is growing, but maturity remains elusive. Eighty percent of the top 50 commercial auto insurers now use telematics in some capacity, with 68% reporting that it's improving their pricing accuracy. These are significant gains.
But half of these insurers still consider themselves to be in the early stages of telematics adoption. Why? Despite a telematics infrastructure in place, the integration across underwriting, claims and loss control is still unfolding. Only 14% of top insurers have launched usage-based insurance (UBI) products in one or more states, though another 32% are actively piloting programs.
From our perspective, the hesitation from insurers isn’t about technology; it’s the execution. Commercial auto insurance carriers are experiencing the following challenges and barriers:
- Convincing fleets to share data
- Securing broker buy-in
- Building internal capabilities to turn data into insights
What’s emerging, however, are subtle successes that insurers are leaning on from their telematics programs. Insurers that succeed are those who combine telematics mandates for specific risk segments with subsidized loss control programs, transparent data usage policies and tangible risk management support. They're not just asking for data; they're proving why sharing it benefits both parties.
The Breakthrough Broker Opportunity
At the center of the telematics landscape between an insurer and fleet are brokers. The shadow hovering over this central role is the fact that only 52% of brokers are proactively offering insurer telematics programs to their clients.
Fleets increasingly see telematics as essential to their operations, making this lack of offering from brokers a significant missed opportunity. However, the brokers who are leaning in show clear benefits:
- Better client segmentation
- Differentiation in a competitive market
- Ability to provide proactive risk management
Fifty-two percent of brokers, according to our report, are likely or very likely to invest further in risk control services over the next two years. Yet, an important reminder is that telematics value recognition comes down to a breakdown in communication.
Many fleets don't understand the benefits of data sharing, and many brokers haven't positioned telematics as a strategic advantage. When fleets do share data with their insurer, the outcomes speak for themselves. Most fleets report that their insurer actively helps them manage risk, creating a virtuous cycle of safer operations, fewer claims and more sustainable premiums.
Driver Training Is the Missing Link
One of the most underutilized findings in our survey is the power of pairing telematics with driver training. While 95% of fleets consider driver training important, only 25% are using telematics data to assign targeted courses based on risky driving behaviors.
This is where the real operational transformation happens. Telematics doesn't just capture data—it identifies specific, actionable behaviors that personalized training can address. Harsh braking, speeding and distracted driving aren't abstract risks. They're patterns that can be interrupted with timely, relevant intervention.
For insurers, this creates a clear pathway to reduce both the frequency and severity of claims. For fleets, it turns telematics from a monitoring tool into a performance improvement system. The data becomes the diagnosis, and training becomes the treatment.
Where We Go Next
The telematics industry is no longer asking whether the technology works; we know it does. The question now is how quickly fleets, insurers and brokers can align around shared goals and shared data.
Artificial intelligence (AI) is poised to accelerate this shift. Sixty-four percent of brokers and 75% of insurers view AI as having a significant or extremely significant impact on fleet safety in the future. The ability to analyze telematics data at scale, better predict risk and deliver real-time interventions will only deepen the value proposition.
But technology alone won’t close the gap. Trust, communication and a willingness to move from transactional relationships to true partnerships are where the industry will move forward in a meaningful way. Fleets need insurers who see telematics as more than a pricing lever. Insurers need fleets that understand the importance of data sharing in supporting their efforts to promote safe drivers and reduce insurance costs. For brokers, they have an opportunity to position themselves as the connectors who make both sides better.
The next chapter of telematics will be defined by those who recognize that, in a world of rising claims severity, nuclear verdicts and persistent driver risk, collaboration isn’t optional—it’s essential.
Download the full 2025 Telematics Report to explore industry-specific insights, expert perspectives and the data behind these findings.
