Teletrac Navman has warned fleet operators they can expect to see significant rises in their insurance premiums, unless steps are taken to improve risk management and reporting.
Teletrac Navman is launching a new campaign, in conjunction with its insurance consultancy partner Jelf, to highlight the importance of risk management and ensure the fleet industry and its customers take action to limit the impact of recent changes.
John Marks, Sales Director at Jelf explains “Earlier in the year, the Government changed the way in which personal injury compensation pay-outs are calculated, known as the Ogden rate. The Ogden rate, also referred to as the discount rate or personal injury rate, is designed to help calculate future losses in personal injury and fatal accident cases. When courts assess compensation awards they take into account how much interest could be earned based on the discount rate.
“Since 2001 the rate has been set at 2.5% meaning this amount is discounted from the compensation insurers would pay. From March 20 2017, the Ministry of Justice changed the discount rate to -0.75% meaning initial payments from insurers will be significantly higher. This change makes it inevitable that there will be an increase in premiums.
“No business wants to incur additional unexpected costs. With proper planning and a positive approach towards risk management there are steps that can be taken to help reduce the potential impact.”
Proactively use vehicle tracking software – to gather evidence on how you’ve improved risk management
Consider integrated cameras – which can prevent accidents and highlight instances where drivers were not at fault
Improve driver behaviour – implement processes and review meetings with drivers to reduce speeding and excessive cornering and braking
Consider whether your vehicles are fit for purpose – could your fleet use smaller vehicles if they’re operating on narrower roads or smaller depots, thus reducing potential accidents?
Reporting – fleets must provide evidence of risk management when renewing their insurance premiums
Peter Millichap, UK Marketing Director at Teletrac Navman, comments: “Insurance premiums remain one of the largest overheads for fleets, however many operators will not become aware of rising premiums until they come to renew their policy.
“Our campaign highlights how businesses can take immediate steps to minimise costs, as well as improve the overall safety and performance of their fleet.
“Telematics is a critical tool in analysing and improving risk management, however fleets must actively use the software in order to reduce premiums.”
About Teletrac Navman:
Teletrac Navman is a multinational telematics company leveraging 25 years of experience to help fleets boost revenue and lower operating costs. We equip businesses with advanced data tools for location tracking, fuel monitoring, reporting, safety and compliance, all via one powerful, user-friendly platform.
We're devoted to providing accurate and precise data secured by the strongest protection and controls. These tools and methods improve business’ bottom line and help them stay competitive. Teletrac Navman currently tracks nearly 500,000 vehicles owned by over 40,000 organisations on six continents, making us one of the world's largest fleet management providers.
Teletrac Navman’s ever-evolving fleet management technologies offer a unique combination of features, functionality, compliance and workflow solutions paired with unparalleled platform reliability.
Jelf is an award winning consultancy that supports businesses and individuals with expert advice on matters relating to insurance, employee benefits and risk management. Its purpose is simple: to build a long-lasting relationship with clients and to become their Trusted Adviser.
Jelf was formed in 1989 by Chris Jelf and in December 2015 became part of Marsh & McLennan Companies (MMC), a global leader in risk, strategy and people. In January 2017 Jelf was joined by Bluefin group, which also became part of MMC, bringing together two leading community brokers and client advisory businesses.
Jelf and Bluefin have a strong local presence which enables our advisers to provide outstanding levels of service. The combined business works out of 80 offices across England, Wales, Scotland and Northern Ireland, employing almost 3,000 employees.
For more information about Jelf and Bluefin, please visit www.jelfgroup.com and www.bluefingroup.co.uk