NZI on why fleet risk management is a key part of its proposition

NZI on why fleet risk management is a key part of its proposition | Insurance Business New Zealand

Motor & Fleet

NZI on why fleet risk management is a key part of its proposition

“[Insurance brokers are] always looking for an edge”

Motor & Fleet

By
Terry Gangcuangco

NZI, the intermediated brand of IAG New Zealand whose customers span the broad breadth of the transport industry, is seeing the benefits of its Fleet Fit initiative. Here, NZI executive general manager Garry Taylor (pictured) talks about how the risk management offering is not only keeping customers safe but also providing brokers an edge.

“For any customer, the journey starts with a conversation with one of NZI’s specialist fleet risk managers, generally at their place of business,” Taylor told Insurance Business. “The meeting is a chance to get to know their business and, based on our experience working with similar businesses, we can make suggestions that we think might help reduce their risk of a major loss or disruption.

“As an example, we often work with businesses that have grown quickly – the typical story of a truck driver who’s working for someone else, goes out on their own, wins a couple of contracts and before too long find they own five or six trucks, and have employed an office support person or two.

“In these situations, company culture and leadership training can be beneficial to promote safety culture. Our fleet risk partner Success Formula has a number of programmes that can be tailored to support businesses like these.”

Highlighted by IAG New Zealand chief executive Amanda Whiting at a recent Investor Day event, NZI’s Fleet Fit programme spans 14 different product offerings that commercial motor policyholders can select from.

Taylor noted: “NZI has offered fleet risk management support to our customers for over 20 years. It adds further value to our insurance offerings through improved fleet safety – and therefore safety for our customers and their teams – as well as through performance.

“The reference to these services as ‘Fleet Fit’ is a more recent development, with the name having been in place for the last two years.

“Our transport brokers appreciate the opportunity to talk about risk management, as well as the insurance cover and premium, when it comes time to renew a policy. They tell us that they’re always looking for an edge in the insurance value proposition, and NZI’s Fleet Fit programme provides that.”

Common risk and programme benefits

Of the usual fleet risks, Taylor put a spotlight on fatigue and how NZI is helping to address it.

“Fatigue is a common risk, and one we suspect is heavily underreported in our claim statistics and in crash scene reporting – for example, we have sadly received claims where trucks have gone straight ahead on easy bends or veered off a straight piece of road,” the EGM said.

“It’s uncommon for a claim form to pick up that the driver nodded off, so to help combat this risk, we offer companies a trial with a fatigue monitoring camera system by Guardian which monitors eye closure and sounds an audible alarm while vibrating the seat if a driver’s eyes close for more than a set amount of time. This is an in-the-moment intervention, which has been proven to prevent accidents.

“We also have a range of fatigue workshops, or sleep studies that can be used to educate drivers or help diagnose sleep disorders. Fatigue risk spans across industries, and as a result these programmes are some of our most popular.”

So, is Fleet Fit resulting in a reduction in claims? While Taylor wouldn’t outright say ‘yes’, the benefits of the offering are apparent.

He told Insurance Business: “It’s hard to eliminate all other variables and say definitively that any claim reduction is a direct result of our Fleet Fit programme.

“However, we have plenty of video footage showing examples of drivers who have nodded off before being awoken by a vibrating seat, triggered by sophisticated face and eye tracking technology, or drivers being diagnosed through our sleep studies as having sleep apnoea which [is] treated and therefore minimising the dangers…

“For us at NZI, Fleet Fit is more than avoiding claims – as we will always be here for our customers when they need us. It’s about keeping our customers safe, productive, and flourishing into the future.”

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