The Path to Sustainable Low-Cost Motor Insurance for SMEs - Part Three
How To Improve Driver Behaviour
Averting claims reduces your motor insurance premium and drives other savings, safety and sustainability. While the principal source of claims is collisions, poor driver behaviour is the number one culprit according to the Road Safety Authority.
In fact, driver error is the primary factor in 84.8%* of fatal road traffic collisions. So how exactly can a SME improve behaviour?
When a SME employee is driving for work, they usually find themselves directed by the business where to go, when to arrive, who to call enroute, what cargo to take and much more. Social science has shown for decades that managers are significant influencers on workplace behaviour. Just as vehicles are deemed a workplace, the “observer effect” and “nudges” also impact driving outcomes.
Of course, the human cost of crashes can't be counted. The financial cost can though and it is often a multiple of what SME motor insurance covers. So, while the right SME culture, leadership and policies are shown to help reduce crash risk, here are seven additional tips to consider:
1. Risk assess your drivers – this helps raise their awareness of motor risk and findings should inform your policy, awareness programmes, training and supervision
2. Clear comms – share regular messaging of your goals, good practices, tips, insights and alerts via email, WhatsApp, SMS, posters, team meetings etc.
3. Issue a driver's handbook – this is a simple and tangible aide-memoir for drivers. Keep it short, engaging and practical. Include driver, vehicle and journey sections along with what to do in the event of a crash or breakdown.
4. Analyse your crash history – look for trends across your fleet, take steps to avoid repeats and follow-up with individuals to emphasise you are serious about crash reduction
5. Use carrots – incentivising good driving can take the form of recognition, announcements, awards and rewards for individuals or teams. Just ensure the basis is objective and doesn't lead to under-reporting
6. And sticks – just like speeding fines and penalty points, in-house sanctions can deter negative behaviour behind the wheel. Whether it’s a contribution to an insurance excess or a donation to a charity, the measure chosen should be both felt and fair
7. Technology – while devices can increase distraction and risk, the right tech is a powerful ally. Choose a telematics or dashcam system that gives you the behavioural insights and privacy safeguards you need, not just lots of data. Driver scoring is a useful, simple and objective tool to measure and manage performance, while dashcam video is a great aid to help coach and even exonerate your drivers if they’re wrongly blamed for an incident.
As you know, there is no “silver bullet” to improving driver behaviour and if you’re tempted to think “driver training”, then beware! As the National Office of Traffic Medicine advised**, at-work driver retraining to improve safety is an “urban myth”. When it comes to “behaviour modification”, what works are “incentive schemes, group-based discussions plus goal-setting and feedback programmes”.
Like any journey, the key to success in managing SME motor claims, crashes and behaviour is knowing where you want to go, who you need on-board and how you can best support your drivers. Good luck too!
Sources:
* RSA Road Safety Strategy 2013-2020 (Pg.15)
** HSA, An Garda Síochána and RSA | Driving for Work 2020 Webinar. Medical Fitness and Vocational Driving (Slide 22)
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