Why Telematics Is No Longer an Option for Risk Management
This article is part of a series sponsored by the Risk & Insurance Education Alliance.
Insurers and brokers have invested in safety programs, driver training, surveillance, fraud audits—all common loss prevention tools. Devotion is true.
However, most risk management systems work on a continuous basis. They rely on lagging indicators that miss important changes. Claims history shows only past events. Violations often appear months after incidents, widening the gap between accident and response. By the time risk management teams receive actionable information, the opportunity for early intervention has passed.
Telematics is changing that by enabling more proactive, more accurate risk mitigation. It delivers continuous driver data that helps predict future claims before they happen. Patterns of speed, hard braking, and distractions become early warning signs, empowering risk management teams to act before accidents happen. With AI now able to process these large streams of data, telematics is moving from a monitoring tool to a dynamic risk prevention system.
Starting in 2023, the Risk & Insurance Education Alliance and SambaSafety are partnering to test these methods, testing insurers, brokers, and airlines to track the adoption and use of commercial automated calls. Joint research reports show that, with 87% of fleets already using telematics and rapidly maturing AI capabilities, the necessary infrastructure is already in place. This sets the stage for insurance companies and consumers to take full advantage of this technology in risk management, as the cost of inactivity continues to rise.
Growing Losses Require Intelligent Risk Data
The commercial auto insurance market is in a state of flux. By 2024, underwriters faced losses of $4.9 billion, despite 54 consecutive quarters of premium increases.
Clearly, this cycle is unsustainable. Breaking it requires a fundamental change in the way risk is managed.
Premium increases are just one symptom of deeper problems, such as rising nuclear premiums—to the tune of $23.8 million—and the cost of credit claims driven higher by social inflation.
Emerging technologies and risky behavior are compounded by resilience. The average cost of claims has increased due to Advanced Driver Assistance Systems (ADAS), while speeding and distracted driving continue to be a major contributor to violations, injuries, and deaths.
Insurers are no longer able to pay for more common or severe problems. They should prevent themselves. Telematics is now an essential tool for insurers committed to reversing the loss trend and transforming risk management from a reactive to an agile approach.
Risk Management Exists, But It Works With Imperfect Data
SambaSafety’s 2025 Telematics Report shows 60% of insurers are using telematics across their risk management teams, and most of the top 50 commercial auto insurers say they now offer or sponsor telematics as part of their risk management efforts.
The challenge? Many of these systems still rely heavily on retrospective data. MVRs show violations only after a decision is made, usually several months later. Claims history reveals patterns after a loss has occurred. License monitoring catches suspension or expiration but can miss behavioral signals that predict risk before it happens.
“The real value of telematics is not in capturing accident signals, but in how insurers, brokers, and airlines work together to reduce exposure,” said John Barbagallo, strategic advisor at SambaSafety and former president of commercial lines at Progressive Insurance. Data alone does not change the results. Data combined with action drive real risk reduction.
Telematics fills the visibility gap. It provides continuous monitoring of driver behavior as it happens, giving risk management teams the ability to identify high-risk patterns in time to intervene before those behaviors lead to claims.
The impact is measurable. Airlines that combine continuous monitoring with targeted driver training can reduce violations by an average of 77%, reports SambaSafety. Telematics accelerates risk reduction, improving high risk driver scores by 40% within three months. For insurance companies, this means better loss ratios, reduced exposure, and a path to sustainable profitability.
Telematics Enables Effective, Targeted Interventions
The change when the risk controller integrates telematics data is catching on. Here are some key changes that teams may experience:
From working to working. Instead of reacting to increased claims activity, risk management teams can identify patterns of increasing risks to their insurers and recommend tools to help them intervene before claims escalate. Fleets can use intelligence, such as increased speeding events or hard brakes, to target risks with training designed to reduce them. Interventions now happen in real time, not months later.
From occasional to continuous. Risk advisors have always adapted their approach to the unique needs of each vessel—that has never been a problem. The historical challenge has been to keep visibility of the ship’s vulnerability between periodic inspections. Telematics eliminates this completely, allowing risk management teams to see emerging patterns across their book and intervene before they affect loss estimates.
From anecdotal to evidence based. Telematics provides objective data on what is happening behind the wheel. No more relying on your reports or remote audits. Risk management teams can now identify trends, measure improvements, and prove ROI with hard numbers.
Top insurers are already using these methods. They guide their clients through dynamic risk profiles and targeted training that improves results. The result: safer vehicles, fewer claims, and stronger relationships with policyholders who see real value in the partnership.
Consumers: Telling the Customer’s Story to Reduce Risk
For consumers, risk management is no longer just about preventing losses; it’s about demonstrating value and telling each client’s unique security story. If a shipping client works with their broker, shares data and implements risk management measures such as training, the broker can use this information to demonstrate that they are a better risk.
Telematics elevates the role of the retailer. With real-time insights, merchant risk consultants can recommend risk management tools that show data-driven narratives that reduce risk and align with both underwriters and clients.
It’s no wonder that 52% of consumers plan to increase investment in risk management services over the next two years. They recognize that telematics is not just another tool—it’s the engine of a complex, critical, and future-proof risk management strategy. in the next two years. They recognize that telematics is not just another tool—it’s the engine of a complex, critical, and future-proof risk management strategy.
Overcoming Barriers to Discovery
The biggest challenge for insurers is convincing airlines of all sizes to share telematics data, according to SambaSafety’s 2025 Telematics report. But for 79% of fleets, the reason they don’t share is simply because they’ve never been asked.
This is a communication gap, not a skills gap. When insurers clearly lead and deliver increased value through telematics, adoption increases. Of the companies that share data, most report that their insurance helps them manage risk. It becomes a partnership, not just a transaction.
Internal barriers persist, from concerns about cost and lack of resources to limited experience with telematics. However, these barriers are decreasing as the market matures. Advances in communication platforms and data integration tools reduce integration barriers and reduce resource demands. Partnerships with specialist risk management providers now deliver the statistics and insights required by insurers, removing the pressure for major internal development or investment.
Fortunately, the infrastructure is very much in place. Since most fleets already use telematics devices, insurance companies can use integrators like SambaSafety to tap into existing fleet telematics and remove barriers to adoption.
AI will augment what already works
Artificial intelligence (AI) is poised to dramatically improve risk management powered by telematics.
Insurers and brokers widely agree that AI will have a major impact on fleet safety. The technology can process large telematics datasets instantly, identify patterns of accidents and trigger interventions at scale.
Think about what you are allowing. Real-time risk scoring that automatically prioritizes which drivers need training. Predictive analytics that identify dangerous patterns before they cause events. Automatic alerts when behavior rises above acceptable limits.
With the proliferation of cameras, AI-driven video analysis will allow for even more precise interventions. The combination of telematics data, video evidence, and AI-powered data is more effective than traditional methods.
Insurers who use AI effectively based on a high-quality data infrastructure will gain a competitive advantage. And that infrastructure lies in telematics.
Moving Forward: Integration and Implementation
The foundation is made. Insurers and brokers have invested in robust risk management and security systems, demonstrating a clear commitment to loss prevention.
But without telematics, these systems lack significant insight. Relying on lagging indicators means reacting after the fact, rather than preventing losses before they occur. Better indicators are needed for faster intervention and improved composite operating ratio (COR).
Telematics delivers that capability by giving risk management teams the visibility to identify problems early, the accuracy of effective interventions, and the accurate data to prove results. Telematics is now central to effective risk management, and adopting it doesn’t just mean adding a new dashboard; is reshaping the way risk management works. Those who embrace this change aren’t just keeping up—they’re helping shape what’s ahead.
SambaSafety is committed to improving the auto insurance industry through research and analysis of risk trends. To view our latest data and research, visit
Author Arissa Dimond – Arissa Dimond brings over ten years of experience in copywriting and four years of experience in Insurtech to her role as Insurance Content Manager at SambaSafety, a recognized developer and leading provider of cloud-based risk management solutions serving over 16,000 organizations with automotive exposure.
