Telematics: An Essential Tool for Effective Risk Control

This article is part of a sponsored series by Risk & Insurance Education Alliance.

Insurers and brokers have long invested in traditional safety programs, including driver training, monitoring, and mock audits. However, many risk control initiatives remain reactive, relying on lagging indicators that fail to capture critical changes in real time. Claims history reflects past events, and violations often emerge months after incidents, creating a disconnect between risk and response. By the time actionable information reaches risk control teams, the chance for early intervention has often passed.

Telematics revolutionizes this approach by enabling earlier and more precise risk mitigation. Continuous driver data allows for the prediction of future claims before they occur. Patterns such as speeding, harsh braking, and distracted driving serve as early warning signs, empowering risk control teams to act proactively. With advancements in AI, telematics evolves from a mere monitoring tool to an adaptable risk prevention system.

Since 2023, the Risk & Insurance Education Alliance and SambaSafety have collaborated to explore these trends, surveying insurers, brokers, and fleets to assess the adoption and utilization of commercial auto telematics. Their joint research highlights that 87% of fleets are already utilizing telematics, and with AI capabilities rapidly advancing, the necessary infrastructure is in place. This positions insurers and brokers to fully leverage this technology for effective risk control, especially as the cost of inaction continues to escalate.

Rising Losses Demand Smarter Risk Data

The commercial auto insurance market is at a critical juncture. In 2024, underwriters faced $4.9 billion in losses, despite experiencing 54 consecutive quarters of premium increases. This cycle is unsustainable, necessitating a fundamental transformation in risk management.

Premium escalation is merely a symptom of deeper issues, such as soaring nuclear verdicts—reaching a median of $23.8 million—and rising liability claims costs driven by social inflation. Emerging technologies and risky behaviors further compound severity, with average claims costs increasing due to Advanced Driver Assistance Systems (ADAS) while speeding and distracted driving remain significant contributors to violations and fatalities.

Insurers can no longer afford to price themselves out of frequency or severity problems; they must prevent them. Telematics has become an essential tool for insurers committed to reversing loss trends and transforming risk control from a reactive to a proactive approach.

Risk Control Exists, But It’s Operating with Incomplete Data

According to SambaSafety’s 2025 Telematics Report, 60% of insurers utilize telematics within their risk control teams, and a significant majority of the top 50 commercial auto insurers now offer or subsidize telematics as part of their risk control efforts.

However, many of these programs still rely heavily on retrospective data. Motor Vehicle Records (MVRs) reveal violations only after adjudication, often months later. Claims history uncovers patterns only after losses occur, while license monitoring may catch suspensions but miss behavioral signals that predict risk before it materializes.

“The real value of telematics lies not in capturing risk signals, but in how insurers, brokers, and fleets act on them together to reduce exposure,” explains John Barbagallo, strategic advisor at SambaSafety and former president of commercial lines at Progressive Insurance. Data alone doesn’t alter outcomes; insights combined with action drive real risk reduction.

Telematics bridges the visibility gap by providing continuous monitoring of driver behavior, allowing risk control teams to identify high-risk patterns in real time and intervene before claims arise. The measurable impact is significant: fleets that combine continuous monitoring with targeted driver training can reduce violations by an average of 77%, according to SambaSafety. This proactive approach improves high-risk driver scores by 40% within three months, leading to better loss ratios and reduced exposure for insurers.

Telematics Enables Proactive, Targeted Interventions

The integration of telematics data into risk control represents a significant shift. Here are key transitions teams may experience:

From reactive to proactive. Instead of merely responding to increased claims activity, risk control teams can identify escalating risk patterns and recommend tools for intervention before claims rise. Insights such as increased speeding or hard braking events allow fleets to target risk with tailored training.

From periodic to continuous. While risk consultants have always tailored their approach to each fleet’s unique needs, maintaining visibility between periodic assessments has been a challenge. Telematics eliminates this issue, enabling teams to identify emerging patterns and intervene before they impact loss ratios.

From anecdotal to evidence-based. Telematics provides objective data on driver behavior, eliminating reliance on self-reports or lengthy audits. Risk control teams can now identify trends, measure improvements, and demonstrate ROI with concrete numbers.

Leading insurers already employ these strategies, guiding clients with dynamic risk profiles and targeted training that yield improved outcomes. The result is safer fleets, fewer claims, and stronger relationships with policyholders who recognize the value of their partnership.

Brokers: Telling the Client’s Risk Reduction Story

For brokers, risk control has evolved beyond merely preventing losses; it’s about demonstrating value and narrating each client’s unique safety story. When fleet clients collaborate with their brokers to share data and implement risk control measures, brokers can leverage this information to illustrate that they represent a better risk.

Telematics enhances the broker’s role significantly. With real-time insights, broker risk consultants can recommend risk management tools that create a data-driven narrative, reducing risk and resonating with both underwriters and clients. It’s no surprise that 52% of brokers plan to increase investment in risk control services over the next two years, recognizing telematics as a cornerstone of a more sophisticated and valuable risk control strategy.

Overcoming Adoption Hurdles

A significant challenge for insurers is persuading fleets of all sizes to share telematics data, as noted in SambaSafety’s 2025 Telematics Report. Interestingly, 79% of fleets report that they haven’t shared data simply because they’ve never been asked.

This indicates a communication gap rather than a capability gap. When insurers prioritize transparency and deliver incremental value through telematics, adoption rates increase. Fleets that share data often find that their insurer actively assists in managing risk, fostering a partnership rather than a mere transaction.

Internal barriers, such as cost concerns and limited resources, persist, but these obstacles are diminishing as the market matures. Advances in telematics platforms and data aggregation tools are lowering integration hurdles and easing resource demands. Collaborations with specialized risk management providers now offer the analytics and insights insurers require, alleviating the need for extensive internal development or investment.

Fortunately, the infrastructure is largely established. With many fleets already utilizing telematics devices, insurers can leverage aggregators like SambaSafety to access existing fleet telematics and eliminate adoption barriers.

AI Will Amplify What’s Already Working

Artificial intelligence (AI) is set to significantly enhance telematics-powered risk control. Insurers and brokers largely agree that AI will have a substantial impact on fleet safety. This technology can process vast telematics datasets instantly, identifying risk patterns and triggering interventions at scale.

Consider the possibilities: real-time risk scoring that prioritizes which drivers need coaching, predictive analytics that detect dangerous patterns before incidents occur, and automated alerts for behaviors that exceed acceptable thresholds. As camera adoption rises, AI-driven video analysis will facilitate even more precise interventions. The combination of telematics data, video evidence, and AI insights is far more effective than traditional methods.

Insurers and brokers who successfully implement AI based on a robust data infrastructure will gain a competitive edge, and that infrastructure is rooted in telematics.

Moving Forward: Integration and Execution

The groundwork has been laid. Insurers and brokers have invested in comprehensive risk control programs and safety initiatives, demonstrating a clear commitment to loss prevention. However, without telematics, these programs lack critical insights. Relying on lagging indicators means reacting after the fact rather than preventing losses proactively. Leading indicators are essential for timely intervention and improved combined operating ratios (COR).

Telematics provides the capability to give risk control teams the visibility needed to identify problems early, the precision to intervene effectively, and accurate data to demonstrate results. It has become central to effective risk control, and adopting it is not merely about adding a new dashboard; it fundamentally reshapes how risk control operates. Those who embrace this shift are not just keeping pace—they are actively shaping the future.

SambaSafety is committed to advancing the auto insurance industry through risk trends research and analysis. To view our latest data and research, visit https://sambasafety.com/research-reports-2025

Author Arissa Dimond – Arissa Dimond brings over a decade of copywriting experience and four years of experience in Insurtech to her role as Insurance Content Manager at SambaSafety, a recognized innovator and leading provider of cloud-based risk management solutions serving over 16,000 organizations with automotive mobility exposure.

This article is part of a sponsored series by Risk & Insurance Education Alliance.

Insurers and brokers have long invested in traditional safety programs, including driver training, monitoring, and mock audits. However, many risk control initiatives remain reactive, relying on lagging indicators that fail to capture critical changes in real time. Claims history reflects past events, and violations often emerge months after incidents, creating a disconnect between risk and response. By the time actionable information reaches risk control teams, the chance for early intervention has often passed.

Telematics revolutionizes this approach by enabling earlier and more precise risk mitigation. Continuous driver data allows for the prediction of future claims before they occur. Patterns such as speeding, harsh braking, and distracted driving serve as early warning signs, empowering risk control teams to act proactively. With advancements in AI, telematics evolves from a mere monitoring tool to an adaptable risk prevention system.

Since 2023, the Risk & Insurance Education Alliance and SambaSafety have collaborated to explore these trends, surveying insurers, brokers, and fleets to assess the adoption and utilization of commercial auto telematics. Their joint research highlights that 87% of fleets are already utilizing telematics, and with AI capabilities rapidly advancing, the necessary infrastructure is in place. This positions insurers and brokers to fully leverage this technology for effective risk control, especially as the cost of inaction continues to escalate.

Rising Losses Demand Smarter Risk Data

The commercial auto insurance market is at a critical juncture. In 2024, underwriters faced $4.9 billion in losses, despite experiencing 54 consecutive quarters of premium increases. This cycle is unsustainable, necessitating a fundamental transformation in risk management.

Premium escalation is merely a symptom of deeper issues, such as soaring nuclear verdicts—reaching a median of $23.8 million—and rising liability claims costs driven by social inflation. Emerging technologies and risky behaviors further compound severity, with average claims costs increasing due to Advanced Driver Assistance Systems (ADAS) while speeding and distracted driving remain significant contributors to violations and fatalities.

Insurers can no longer afford to price themselves out of frequency or severity problems; they must prevent them. Telematics has become an essential tool for insurers committed to reversing loss trends and transforming risk control from a reactive to a proactive approach.

Risk Control Exists, But It’s Operating with Incomplete Data

According to SambaSafety’s 2025 Telematics Report, 60% of insurers utilize telematics within their risk control teams, and a significant majority of the top 50 commercial auto insurers now offer or subsidize telematics as part of their risk control efforts.

However, many of these programs still rely heavily on retrospective data. Motor Vehicle Records (MVRs) reveal violations only after adjudication, often months later. Claims history uncovers patterns only after losses occur, while license monitoring may catch suspensions but miss behavioral signals that predict risk before it materializes.

“The real value of telematics lies not in capturing risk signals, but in how insurers, brokers, and fleets act on them together to reduce exposure,” explains John Barbagallo, strategic advisor at SambaSafety and former president of commercial lines at Progressive Insurance. Data alone doesn’t alter outcomes; insights combined with action drive real risk reduction.

Telematics bridges the visibility gap by providing continuous monitoring of driver behavior, allowing risk control teams to identify high-risk patterns in real time and intervene before claims arise. The measurable impact is significant: fleets that combine continuous monitoring with targeted driver training can reduce violations by an average of 77%, according to SambaSafety. This proactive approach improves high-risk driver scores by 40% within three months, leading to better loss ratios and reduced exposure for insurers.

Telematics Enables Proactive, Targeted Interventions

The integration of telematics data into risk control represents a significant shift. Here are key transitions teams may experience:

From reactive to proactive. Instead of merely responding to increased claims activity, risk control teams can identify escalating risk patterns and recommend tools for intervention before claims rise. Insights such as increased speeding or hard braking events allow fleets to target risk with tailored training.

From periodic to continuous. While risk consultants have always tailored their approach to each fleet’s unique needs, maintaining visibility between periodic assessments has been a challenge. Telematics eliminates this issue, enabling teams to identify emerging patterns and intervene before they impact loss ratios.

From anecdotal to evidence-based. Telematics provides objective data on driver behavior, eliminating reliance on self-reports or lengthy audits. Risk control teams can now identify trends, measure improvements, and demonstrate ROI with concrete numbers.

Leading insurers already employ these strategies, guiding clients with dynamic risk profiles and targeted training that yield improved outcomes. The result is safer fleets, fewer claims, and stronger relationships with policyholders who recognize the value of their partnership.

Brokers: Telling the Client’s Risk Reduction Story

For brokers, risk control has evolved beyond merely preventing losses; it’s about demonstrating value and narrating each client’s unique safety story. When fleet clients collaborate with their brokers to share data and implement risk control measures, brokers can leverage this information to illustrate that they represent a better risk.

Telematics enhances the broker’s role significantly. With real-time insights, broker risk consultants can recommend risk management tools that create a data-driven narrative, reducing risk and resonating with both underwriters and clients. It’s no surprise that 52% of brokers plan to increase investment in risk control services over the next two years, recognizing telematics as a cornerstone of a more sophisticated and valuable risk control strategy.

Overcoming Adoption Hurdles

A significant challenge for insurers is persuading fleets of all sizes to share telematics data, as noted in SambaSafety’s 2025 Telematics Report. Interestingly, 79% of fleets report that they haven’t shared data simply because they’ve never been asked.

This indicates a communication gap rather than a capability gap. When insurers prioritize transparency and deliver incremental value through telematics, adoption rates increase. Fleets that share data often find that their insurer actively assists in managing risk, fostering a partnership rather than a mere transaction.

Internal barriers, such as cost concerns and limited resources, persist, but these obstacles are diminishing as the market matures. Advances in telematics platforms and data aggregation tools are lowering integration hurdles and easing resource demands. Collaborations with specialized risk management providers now offer the analytics and insights insurers require, alleviating the need for extensive internal development or investment.

Fortunately, the infrastructure is largely established. With many fleets already utilizing telematics devices, insurers can leverage aggregators like SambaSafety to access existing fleet telematics and eliminate adoption barriers.

AI Will Amplify What’s Already Working

Artificial intelligence (AI) is set to significantly enhance telematics-powered risk control. Insurers and brokers largely agree that AI will have a substantial impact on fleet safety. This technology can process vast telematics datasets instantly, identifying risk patterns and triggering interventions at scale.

Consider the possibilities: real-time risk scoring that prioritizes which drivers need coaching, predictive analytics that detect dangerous patterns before incidents occur, and automated alerts for behaviors that exceed acceptable thresholds. As camera adoption rises, AI-driven video analysis will facilitate even more precise interventions. The combination of telematics data, video evidence, and AI insights is far more effective than traditional methods.

Insurers and brokers who successfully implement AI based on a robust data infrastructure will gain a competitive edge, and that infrastructure is rooted in telematics.

Moving Forward: Integration and Execution

The groundwork has been laid. Insurers and brokers have invested in comprehensive risk control programs and safety initiatives, demonstrating a clear commitment to loss prevention. However, without telematics, these programs lack critical insights. Relying on lagging indicators means reacting after the fact rather than preventing losses proactively. Leading indicators are essential for timely intervention and improved combined operating ratios (COR).

Telematics provides the capability to give risk control teams the visibility needed to identify problems early, the precision to intervene effectively, and accurate data to demonstrate results. It has become central to effective risk control, and adopting it is not merely about adding a new dashboard; it fundamentally reshapes how risk control operates. Those who embrace this shift are not just keeping pace—they are actively shaping the future.

SambaSafety is committed to advancing the auto insurance industry through risk trends research and analysis. To view our latest data and research, visit https://sambasafety.com/research-reports-2025

Author Arissa Dimond – Arissa Dimond brings over a decade of copywriting experience and four years of experience in Insurtech to her role as Insurance Content Manager at SambaSafety, a recognized innovator and leading provider of cloud-based risk management solutions serving over 16,000 organizations with automotive mobility exposure.