Data is reshaping underwriting by offering dynamic risk insights

Businesses are no strangers to using technology to improve the safety, efficiency, and sustainability of their operations. The roll-out of connected operations – IoT technology installed in the lorries and vans that keep the wheels of our economy turning – has liberated static and siloed information into a steady stream of free-flowing data.  

Up until recently, this information data was used predominantly in-house by business leaders focused on managing their operations. By having operational oversight of things like fuel efficiency, vehicle maintenance, driver safety and route tracking, fleet managers have been able to drive efficiencies to a whole new level.

But today, that same information is also increasingly being used by insurers to help them identify real-time risk. And it’s changing the way fleet insurance operates. 

Take AO, one of the UK’s largest electrical retailers. It installed smart connected telematics across its fleet of over 1,000 commercial vehicles as part of its efforts to generate multi-million-pound savings across the business.

Using safety scores to drive savings

By lowering its accident rate, AO negotiated a staggering 25% cut in motor insurance premiums. It also reported millions in wider operational savings. 

“We’ve got a single source of truth,” says Shaun Carter, Regional Manager, AO. He explains: 

We can monitor individual driver performance, track our fleet of vehicles, and provide training to the drivers that need it most – it’s invaluable, really.

The [driver] safety score is now a hugely important KPI as it demonstrates the work we've done, encourages drivers to compete amongst each other – and by proving that score – we can get a discount on insurance premiums too, it’s a win-win.

This is a far cry from traditional underwriting where premiums are based on things like historical loss data, vehicle age, and mileage. Instead, telematics data changes that by offering insurers a live, dynamic picture of what’s happening on the road, and what’s being done to manage it.

The simple equation seems to be that if fleets can prove they’re reducing risk, then they’re in a much better position to negotiate favorable terms. 

Just ask Egertons Recovery Group. It started trialing Samsara’s connected operations platform in August 2024 following a recommendation from its insurance partner, Marsh. 

It used the data it received from the platform to identify the major risks across its fleet. It then implemented targeted driver coaching to address those key risk areas which included mobile phone use, seatbelt non-compliance, and harsh braking.

By sharing the risk data with Marsh through an API integration – as well as improved driver safety scores – Egertons was able to demonstrate its commitment to mitigating these risks. 

"We have regular meetings to discuss ongoing claims," says Tracy Leese, Transport Manager, Egertons Recovery Ltd. She notes: 

We got the insurance renewal because of the relationship with Samsara, and it has helped with costs as incidents have fallen.

Tackling risk through real-time data

For me, the experience of both AO and Egertons shows that when it comes to managing risk, the real value of connected data lies in providing operational insight that previously was hidden. And I’m not alone in thinking that. 

Recently, I attended an industry roundtable that brought fleets and insurers together in the same room. What struck me were the stories that emerged that show the impact of this growing visibility. 

One firm explained how they spotted how safety violations surged towards the end of a shift, as drivers began to mentally switch off. Another explained how their stats revealed that drivers with less than a year on the job were involved in over half of all incidents. While another used fatigue scores to flag drivers who hadn’t slept – sometimes due to stress or personal issues at home – prompting an intervention which many are convinced helped to preempt something more serious. 

“When we mapped our rear-end collisions, we realized they weren’t happening on the motorway. They were our drivers, doing 5 mph and in the yard,” admitted another.

From policy on paper to real-time accountability

Clearly, this level of visibility is having a fundamental impact on internal operations. But it’s also reshaping how fleets respond to regulatory scrutiny and how they’re getting ahead. Those speaking at the event explained how it’s no longer enough to have a safety policy tucked away in a binder gathering dust on a shelf somewhere in the office. 

In the event of a serious incident, regulators increasingly expect hard evidence such as driver logs, training history, fatigue monitoring, and dashcam footage. The question is no longer just “What went wrong?”, but “What were the warning signs and, more importantly, what did you do about them?”

For many, this is just the beginning. Insurers are increasingly eyeing opportunities to use live fleet data to constantly analyze and monitor fleet risk. And when used in conjunction with evidence of behavioral change, proactive coaching, and improved outcomes, more and more are seeing better terms, faster settlements, and lower premiums.

In time, that could evolve into deeper partnerships between fleets, brokers and insurers, with risk management becoming a continuous feedback loop rather than a once-a-year negotiation. After all, fleet data has already transformed operational performance. It is now starting to transform the insurance conversation.