wtrmtr: fleet management case study 1 · pain and lost quality of life economic and society impact...

WTRMTR: Fleet Management Case Study 10/19/15

WTRMTR: Fleet Management Case Study 1

Presented by: Beth Rosenthal Director of Safety Services, VMLIP

WTRMTR: Fleet Management Case Study: Defensive Driving Fleet Safety and Training Campaign, January 2010 – Present

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WTRMTR: Fleet Management Case Study

Where the Rubber Meets the Road

10/19/15 WTRMTR: Fleet Management Case Study

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!  Objectives "  Why did we launch the campaign? "  What did we do? "  How are we growing? "  How is it working? "  What’s next?

Why Did We Launch This Campaign?


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•  Adverse Auto Liability Loss ratio prior to 2010

•  Limited staff to train all of our program drivers

•  2009-2010: 265 members with insured vehicles, 19,944 vehicles, 1,018 AL claims

Auto Liability Trend


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0

20

40

60

80

100

120

140

160

180

AL Loss Ratio

AL Loss Ratio

Cost of Distracted Driving

!  Property damage !  Lost earnings !  Loss of household

activities !  Medical costs !  Emergency services !  Travel delays !  Vocational rehabilitation !  Lost time at work !  Administrative costs !  Legal !  Pain and lost quality of life Economic and Society Impact of Motor Vehicle Crashes, 2010 NHTSA study

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Total Incurred – Campaign Participants vs. All Others


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What Did We Do?

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Teaching Them to Fish


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!  Focus on member engagement/ownership of their losses

!  Members can train their drivers when it makes sense to do so

!  Tailor training to unique needs !  Carrot vs. stick

"  Premium credit (additional 5 percent off AL premium) vs. "  Reimbursement of training costs and materials

!  Two-year agreement "  Build a habit "  Reliance on the premium credit

In the Beginning – January 2010

!  Members and VMLIP sign two-year agreement !  Up to three instructors per entity attend a two-day

instructor-trainer class !  All instructors trained as National Safety Council

DDC-4 Instructor Trainers "  Certification – optional (teach two NSC DDC-4 classes annually) "  Recently adjusted this to offer VMLIP Safe Driver course as an

alternate

!  Annual goal deadline December 31


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Meeting the Goals

!  Members who achieve annual goals: "  Receive 5 percent

discount on their AL renewal premium

"  Invitation to our annual awards and update banquet

"  Eligible to continue with the campaign

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Meeting the Goals


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!  Members who do not meet their goals "  May be given a short extension to meet their goals (One time

only) "  May wish to discontinue campaign participation

#  Owe VML Insurance Programs for expenses associated with training and materials they have received as a result

First Year Numbers


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!  Participating members: 15 !  Instructors trained: 48 !  Classes taught by instructor trainers: 164 !  Students taught: 3,395 !  Online University driving courses completed: 27

WTRMTR: Building the Foundation

!  Minimum requirements "  One hour of

instructional training for at least 90 percent of all drivers within the first year of campaign

"  Second year and thereafter instructional training for at least 50 percent of all drivers

"  Fleet safety related Risk Management Guideline (RMG) elements must be met

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WTRMTR: Risk Management Guidelines 15

!  Basic Requirements "  4.1 a. Has a determination been made if drivers have a valid and

appropriate license for the vehicle(s) to be driven? "  4.1 b. Are motor vehicle records (MVRs) reviewed annually for all

employees who have access and permission to drive entity-owned vehicles or who are driving on the entity’s behalf? (existing drivers)

"  4.1 c. Are MVRs obtained for all new hires and reviewed prior to assignment of driving duties? (new hires/drivers)

"  4.1 d. Are drivers with records not conforming to your vehicle-use policy restricted from driving?


WTRMTR: RMG 16

!  4.2 Is there a vehicle use policy and training on the policy that: "  4.2 a. applies to all employees who have access and permission

to drive entity-owned vehicles?

"  4.2 b. Addresses personal use, non-employee use, or permission for passengers?

"  4.2 c. Specifies only hands-free use of mobile communication devices unless the vehicle is pulled off of the road in a safe location?


WTRMTR: RMG (cont.)

Mid-level member requirements

!  Driver Training "  8.1 a. Has member developed a written driver training program?

"  8.1 b. Have all employees that drive entity owned vehicles or drive regularly on the entity’s behalf received annual defensive driver training?

"  8.2 c. Are employees who operate specialized equipment and/or vehicles for which a commercial drivers’ license (CDL) is required provided with a briefing and a test drive prior to being assigned driving duties?

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WTRMTR: RMG (cont.)

Largest fleet member requirements !  Vehicle Accident

Review Program "  12.1 a. Has member

implemented a vehicle accident review program with assigned staff responsibilities?

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Training Resources


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What Can Be Measured

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Measurement


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You can’t manage what you can’t measure

Effects of driver training

Beyond the classroom

Geotab GPS telematics

Primary Contributors to Crashes

!  Speeding "  21 percent of the total

economic loss "  $59 billion "  $210 billion or 24

percent of overall societal harm

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!  Drunk Driving "  18 percent of the total

economic loss "  $49 billion "  $199 billion or 23

percent of the overall societal harm

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!  Distraction "  17% of the total

economic loss "  $46 billion "  $129 billion or 15% of

the overall societal harm

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GPS Telematics

!  Simple, plug and play installation "  Built-in accelerometer measures harsh braking,

hard cornering, and rapid acceleration "  Built-in audible beeper for instant driver feedback

!  Works in all classes of vehicles "  Full I/O capability for plows, bus doors, and

emergency lights and siren status "  Lifetime hardware warranty

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All Vehicle Types 26


Small and Portable 27


Installation 28

Locate the vehicle OBD port


Installation 29

Plug in the unit


Installation 30

Ready to go!


MyGeotab Portal 31

24/7 access from any PC, tablet, or smartphone, unlimited users

Automatic e-mail and text alerts, customized reports

Data backed up for two years at no cost


Safety Trending Reports 32

Daily, weekly, monthly trend information

Visual data based on vehicle groups or specific drivers

Illustrates driving trends, helping managers develop achievable driver safety performance benchmarks


In-Vehicle Driver Coaching 33

Easy for drivers to improve on-road driving behavior

In-vehicle alerts notify drivers of unsafe/risky driving events

Once corrected, such as reduction in speed, alerts will cease



Immediate notifications, second-by-second reports

See what happened 30 seconds leading up to accident

If hit while parked, can help prove no-fault to insurance



More than a safety-driven technology

Allows fleet monitoring, increases efficiency, ensures accountability, reduces fuel/maintenance costs.

Provides an effective tool for monitoring I/O status in buses, plows, and other equipment.

Near real-time tracking of

vehicles

Reduce Engine Idling and

Speeding to Save Fuel

Verification of work/

accountability

Monitor and Manage

Maintenance and Mileage

Prevent/Monitor unauthorized

use


Cost of Innovation 36

!  Geotab unit: $100 (one time cost) !  Monitoring: $242 annually !  Equates to about $1 per day per vehicle !  One claim average up front cost $3,500 !  10 percent of fleet causes 90 percent of claim

costs


Resources

!  Added since 2010 "  Coaching the Professional Truck Driver (Added 11/2010) "  Coaching the Maintenance Vehicle Operator II (Added 05/2012) "  Coaching the Straight Truck Driver 2 (Added 05/2012) "  School Bus Safety Kit (Added 02/2010) "  Transporting Students with Special Needs (Added 05/2011) "  DDC-4 Online University (Added 07/2012) "  DDC-4 classroom module (slated for upgrade by NSC 11/2012) "  NSC Cell Phones & Distracted Driving course [this is accessible via

link or CD sent from VMLIP] (Added 4/2012) "  Transit and Para Transit Company Professional Transit Bus and Para

Transit bus Operator training kit (Added 07/2012) "  Coaching the Transit Bus Driver "  Coaching the Emergency Vehicle Operator – Fire


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Resources Cont.

!  Upgraded since 2010 "  Coaching the Emergency Vehicle Operator - Police II (Upgraded to

DVD 05/2012) "  Coaching the Refuse Truck Driver II (Upgraded to DVD 05/2012) "  Coaching the Van Driver (Upgraded kit from II to III 05/2012)

!  VMLIP Online University "  Defensive Driving "  Winter Driving "  Law Enforcement Bundle

#  Avoiding collisions #  Slower is Faster


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Where Did We Start?


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2009-2010:

•  265 members with insured vehicles

•  19,944 vehicles,

•  1,018 AL claims

How Is It Working?


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2014-2015

•  304 members with insured vehicles

•  22,084 vehicles

•  944 AL claims

Where Are We Now?


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!  Through July 2015 "  Participating members: 68 "  Instructors trained: 204 "  Total driving employees: 13,586 "  Students taught: 32,074 "  VMLIP Online University classes completed: 2,284

Years in Campaign - Towns

-120

-100

-80

-60

-40

-20

0

20

YR 1 Yr 2 YR 3 YR 4 YR 5

% Change in Claim Count

Town

Linear (Town)


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Years in Campaign - Cities

-40

-30

-20

-10

0

10

20

30

40



City

Linear (City)


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Years in Campaign - County

-40

-30

-20

-10

0

10

20

30

40

50



County

Linear (County)


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Years in Campaign - Schools

-40

-35

-30

-25

-20

-15

-10

-5

0 YR 1 Yr 2 YR 3 YR 4 YR 5


School

Linear (School)


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Years in Campaign - Water/Wastewater Authority

-150

-100

-50

0

50

100



Water/Wastewater Authority

Linear (Water/Wastewater Authority)


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Years in Campaign – All member types

-35

-30

-25

-20

-15

-10

-5

0 YR 1 Yr 2 YR 3 YR 4 YR 5


All WTRMTR Members

Linear (All WTRMTR Members)


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What’s Next?

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Room to Grow


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!  Telematics Grant to further the telematics initiative "  Focus on transit and school busses, law enforcement

!  Online University training measured as a component of our Risk Management Guidelines

!  Driving Simulation

What’s Next?


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!  Driving Simulators "  For emergency vehicle operators: police, fire, EMS "  For all passenger and heavy equipment vehicles: school bus,

trash truck, dump truck, . . . "  ~ $27,500 per unit "  Drive Square

Questions? Beth Rosenthal, [email protected] or (800) 963-6800 x7326

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wtrmtr: fleet management case study 1 · pain and lost quality of life economic and society impact...

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