The fleet management industry is vast, with thousands of automobiles running on the road. The industry is driven by its workforce of 1.2 million people. However, these people and the overall industry face a significant challenge of fraudulent accident claims.
These lawsuits may result in monetary losses, higher insurance costs, and reputational harm to the business.
Already, a lot of people attempt to fake mishaps to get paid by their insurance companies. Insurance Business Magazine states that staged accidents are the top insurance fraud in places like South California. The region ranks 13th across the US when it comes to questionable collisions.
The case has been similar in other regions of the world, like the UK. The drivers in the UK were even given warnings for motorcyclists staging accidents with them to get claims. Fleet drivers are easy victims of such fraudulent claims. A motorcyclist or any other automobile driver can easily put the blame on them.
Fortunately, technology offers various tools to help defend against these fraudulent activities. From data analytics to blockchain technology, these tools provide robust defenses and streamline fleet management processes.
In this article, we will explore some technologies that fleet management businesses can use to defend against fraudulent accidental claims.
Data Analytics and Reporting Tools
Data analytics and reporting technologies are at the forefront of preventing false claims. Large data sets are analyzed using these techniques to find trends and abnormalities that can point to fraud. For instance, fleet managers can spot inconsistencies that warrant further investigation by:
- Analyzing accident reports
- Maintenance records
- Driver behavior
Reporting tools generate comprehensive reports that summarize these findings. This makes it easier for managers to present evidence when disputing fraudulent claims. The accuracy and effectiveness of these instruments are improved by the incorporation of machine learning algorithms.
It provides a proactive approach for fleet managers to fraud detection and allows them to take necessary measures.
Dash Cams and In-Vehicle Cameras
Dash cams and in-vehicle cameras are powerful tools for documenting incidents on the road. They record the view from the front and back of the vehicle. This helps capture critical details such as:
- Road conditions
- Traffic signals
- The behavior of other drivers
It is due to this visibility that many US drivers are now opting for dash cams. A recent survey indicates that between 15% and 20% of American drivers presently utilize dashcams.
Similarly, in-vehicle cameras monitor the interior of the vehicle. Thus, they provide insights into driver actions and passenger interactions.
These cameras can deter fraudulent claims by offering irrefutable evidence of the actual events. For example, suppose a claimant alleges that an accident was caused by the fleet vehicle. In that case, dash cam footage can show whether the driver was at fault or if the other party was responsible.
Using these fleet multi-cameras can offer a 360-degree vision covering the entire vehicle. Combining fleet multi-cameras with GPS tracking can offer you robust video telematic features that guard your business against fraudulent claims while streamlining fleet management.
Put simply, the multi-camera setup gives you a clear view of everything that is happening within or around your fleet vehicles.
According to Vestige, this gives you a 360-degree view by capturing the entire scene and recording everything from all sides. When combined with GPS, you will also be able to monitor if the drivers are taking the best route possible for optimal cost savings. You can also analyze all this data to see when drivers are:
- Speeding
- Idling their cars
- Using fleet vehicles without permission
GPS Tracking and Telematics
GPS tracking systems are essential for monitoring vehicle locations in real time. This technology helps fleet managers verify the location and route of a vehicle during an alleged accident. In case of a claim, GPS data can provide concrete evidence to confirm or refute the details provided by the claimant.
GPS tracking can also help with other things, like ensuring the drivers are on track with their services. If they reroute to any other location, these systems can alert the fleet managers.
Due to such benefits, the global GPS tracking device market is growing exponentially. It was valued at over $2.9 billion in 2022. The market is expected to grow at a CAGR of 12.5% by 2032 to cross the $9 billion mark.
Fleet Management Software
Fleet management software provides a comprehensive method for safeguarding and maintaining the fleet. This software tracks vehicle maintenance, driver performance, and trip histories, providing a comprehensive view of fleet operations.
When an accident occurs, fleet management software can quickly retrieve all relevant data. This can include but is not limited to:
- Maintenance records
- GPS logs
- Video Footage
It is simpler to refute fraudulent claims with this integrated method, which enables a comprehensive inquiry. Furthermore, the software frequently has functions for planning routine maintenance and driver education courses. This can lessen the chance of fraud and assist in preventing accidents.
A Gartner survey found that there are many reasons why businesses are adopting fleet management software. One of the primary reasons found was inefficiency in traditional management, cited by 44% of the respondents. Some other reasons include limited functionality and business opportunities, cited by 30% and 9%, respectively.
Frequently Asked Questions
What is fleet security management?
Fleet security management is a safety strategy designed to safeguard personnel, property, and a business’s image. It involves a fusion of regulations, technology, and an organizational dedication to safety throughout the board. A manager is responsible for developing a safety strategy that protects the fleet and the staff.
What are the benefits of having GPS systems in your fleet management system?
GPS systems can help fleet managers in a number of ways, such as increased productivity, lower costs, and greater customer support. It also helps managers plan efficient routes to avoid traffic jams. Moreover, it enables you to keep an eye on gasoline usage, driving habits, and fuel theft to reduce fuel expenses.
How will blockchain impact claims handling?
Blockchain technology reduces fraud, increases transparency, and automates and streamlines processes. All these can have a big impact on how insurance companies handle claims. For example, blockchain can expedite the process and lessen the need for human intervention by automatically cross-referencing claims with policy details recorded in its ledger.
To conclude, fraudulent accident claims are a significant concern for fleet rental companies. However, technology provides a range of tools to defend against them. Data analytics and reporting tools, GPS tracking, 360-degree vision cameras, dash cams, and in-vehicle cameras offer comprehensive monitoring and evidence collection.
Despite the challenges and limitations, these technological solutions offer substantial benefits in protecting fleet rental companies from fraudulent claims.
Article and permission to publish here provided by Daniel Washington. Originally written for Supply Chain Game Changer and published on June 28, 2024.
Cover image provided by pexels.com.