(Illustration of how the Internet of Things functions. Source: Celent.)
American Trucking and Transportation Insurance Company, a Risk Retention Group, (ATTIC, RRG Missoula, Mont.) has signed a contract for Lytx to provide its DriveCam video-based driver safety program to ATTIC’s trucking members. As part of a $500,000 safety and risk reduction initiative, ATTIC, RRG will pay for a portion of its members’ cost of the Lytx DC Highway Program, which is designed to meet the needs of enterprise trucking fleets. The contract serves as an example of insurers’ adoption of risk mitigation capabilities based in the Internet of Things, according to analysts.
The DC Highway Program is designed to deliver rapid ROI for enterprise trucking, according to Lytx. It is built on an open platform that provides what the vendor characterizes as the right amount of data, including integration with collision mitigation systems that allows fleets to identify the riskiest drivers in minimal amount of time. Drivers are in control at all times–only events are triggered. The DC program provides flexible coaching options including remote and self-coaching, and it includes CSA Management, operated on Lytx’s RAIR Compliance Services platform, providing immediate notification of violations so fleets can proactively manage CSA scores, the vendor reports.
Cornerstone of Safety Program
“We see the deployment of the DriveCam Program as an extension of our mission to increase safety and reduce risk,” comments Ken Crippen, president and CEO of ATTIC, RRG. “This all started when one of our members began a trial with the DriveCam Program. Our owners quickly saw the benefits of the DriveCam Program and believe it can serve as the cornerstone for our new safety program. We love the coaching opportunities that the program provides and the power of video helps us see what has actually happened on the road.”
ATTIC, RRG’s members operate 12 commercial carriers with 5,100 trucks throughout the U.S. and Canada and have combined annual revenues exceeding $1 billion, according to a Lytx statement. Current members include existing clients of Lytx’s RAIR Compliance Services and the Lytx DriveCam program.
ATTIC, RRG’s agreement with Ltyx provides an illustration of how carriers are adopting Internet of Things capabilities, according to Donald Light, the Palo Alto, Calif.-based director of Celent’s Americas Property/Casualty Practice. “Lytx’s DriveCam program combines unstructured data—video from the DriveCam—with analytics—the ‘What?’ and ‘Why?’ of high-risk events—to create usable business intelligence and, most importantly, a feedback/control loop to modify driver behavior.”
New Ecosystem of Relationships
Vehicle technologies that help to monitor and manage risk are gaining momentum and increasingly being installed, both directly to new vehicles and retrofitted to vehicles post-manufacture, according to Denise Garth, partner, Strategy Meets Action (SMA, Boston). Also, ATTIC, RRG’s partnership with Lytx represents a new ecosystem of relationships that can provide value-added services to customers, Garth adds.
“This will not only enhance the customer relationship and experience, it will help to establish a new business and revenue model as well,” Garth says. “These are both key elements in transformation to a Next-Gen insurer.”