Called Fleet Telematics, the product is the result of a year-long pilot programme performed as part of a joint venture between technology company Cybit and insurance giant Norwich Union.
The firms worked with existing fleet customers who have telematics systems fitted to their vehicles.
Cars using approved telematics systems that can monitor vehicle use can be signed up to the scheme, in which insurers work with fleets to constantly monitor vehicle use and safety issues to set insurance rates. It is estimated that each company using the new system has the potential to earn a 16% premium rebate every year if it meets key safety targets – and can avoid fluctuating insurance costs through fixed rates.
The system also aims to provide fleets with risk management tools designed to cut accidents. The rebates will be performance-based.
Mark Keavney, Norwich Union’s commercial motor product manager, said: ‘What makes this product unique is its combination of vehicle usage data and a fleet’s individual claims information. This means that we will be able to offer truly bespoke and relevant risk management advice, specific to the fleet in question to help them manage their occupational road risks.’
At launch, Fleet Telematics will be available to companies using the Cybit telematics system but this is likely to be rolled out to other technology providers in the future. The cost of the product starts at £20 per month per vehicle and interested fleets should contact their insurance intermediary for further details.
The firms behind the product say its key benefits to fleets include fixed price insurance cover over two or three years; annual telematics-based insurance premium rebate on meeting key performance indicators; risk management advice that looks at key elements of the telematics records which, with claims information, can provide an analysis of the key performance measures and risk management reports; and best practice guidance on running a fleet of vehicles including compliance with safety and legal issues. Norwich Union is currently running a trial of pay-per-mile insurance with 5,000 private drivers also using telematics devices.