Travelers, a property casualty insurer selling primarily through independent agents and brokers, has announced a potential discount of up to 15 percent on certain auto liability insurance premiums for qualifying businesses that effectively use telematics technology to monitor their owned commercial fleets and driver behavior.

Vehicle telematics go beyond navigation and positioning by storing and sending data on how a vehicle is operated, say officials at Travelers. These devices may help reduce maintenance costs, improve vehicle efficiency and lead to insurance discounts.

Recently Virginia Tech Transportation Institute or “VTTI” reported that the implementation of driving behavior management systems using in-vehicle telematics devices can result in a significant reduction in the number of risky driving behaviors.

In this context, Travelers seeks to incent its customers to coach their employees in safe driving by using data obtained from telematics devices.

According to recent Strategy Analytics findings, the spurt in OEM-based telematics solutions is set to result in greater opportunities for technologies seeking to leverage greater connectivity, TMCnet reported.

The rise of telematics solutions has led to insurance-based telematics opportunities despite challenges like pricing, consumer awareness and privacy concern, the report said.

Scott Higgins, president, Travelers Commercial Accounts, said, “By embracing fleet vehicle telematics and offering discounts to our commercial auto customers that effectively deploy this technology, Travelers is furthering its commitment to improving driver behavior and roadway safety.”

“Customers who are already taking advantage of the latest telematics technology are encouraged to work with their independent insurance agent or broker to see if they qualify for the discount,” Higgins added.

Businesses will be able to receive information about driver behavior, vehicle routing and fuel efficiency depending on the specific type and brand of vehicle telematics deployed. This information can help risk and fleet managers minimize risk and costs. This feedback is necessary for risk and fleet managers to engage drivers about their driving performance. Moreover, the feedback provides coaching on how to improve safety.

Chris Hayes, director of Transportation Services, Travelers Risk Control, said, "The use of vehicle telematics is the next step in improving the safe operation of commercial fleets, transforming drivers with less oversight to those whose performance can be observed, coached and managed."

"By using this technology and the wealth of information it can provide, fleet and risk managers can have data that will aid in developing specific training programs that positively modify driving behavior," Chris added.

To get qualified for a discount, businesses must show that they have installed vehicle telematics devices in a sufficient number of their fleet vehicles. Moreover, they should actively incorporate safety information from the devices into their ongoing safety feedback to drivers, at least on a quarterly basis.