AI-enhanced driver profiling helps cut fleet insurance

AI-enhanced driver profiling and accident damage assessment has helped Mercia Fleet Management cut insurance costs by up to 25%.

Working with London-based broker, Konsileo Commercial Insurance, and analysing the results from a client’s 1,000 strong vehicle fleet, Mercia, the fleet management division of electric vehicle (EV) salary sacrifice specialist Fleet Evolution, was able to demonstrate that a number of best practice interventions were key to driving down insurance costs. 

These included driver profiling and remedial behaviour training where appropriate, spatial awareness training for those involved in car park or kerbside incidents, licence checking and vehicle risk management and assessment.

Because of the high number of electric cars involved on the fleet, Mercia also analysed the impact of EVs on accident statistics and found that they were safer than internal combustion engine (ICE) equivalents with lower accident rates.

Although EV repair costs were slightly higher per vehicle, the overall repair costs of EVs were also lower due to the lower rate of incidents.

Head of Mercia Fleet Management and founder of Fleet Evolution, Andrew Leech, said: “We worked with Konsileo and adopted an innovative approach, looking at the analysis cost-by-cost, to identify the interventions that were most likely to impact on the accident levels and repair costs on the fleet.

“High on the list of best practice interventions was AI-enhanced driver profiling using a traffic light and points-based system to identify the most at-risk drivers and to implement remedial training where appropriate.

“The carefully selected interventions across the fleet led to us securing a 25% reduction in insurance premiums – at a time when insurance costs generally are on the increase.”

Mercia is offering a summer series of free educational and myth-busting EV workshops designed to put every aspect of running EVs under the microscope.

Available throughout July, the workshops draw on the company’s experience of managing EVs for fleet customers and aim to address all the current fleet concerns involved in running EVs.

“Interest and uptake has been very good from businesses keen to switch to electric but wanting to take an in-depth reality check before making the commitment,” said Leech.

“There is still a large knowledge gap to fill in many cases and we still have places available for interested parties.”