Fleet risk management: Five key takeaways

Fleet risk management is essential to reduce the likelihood and impact of collisions when drivers undertake deliveries. A good risk management programme: 

• Helps raise awareness of incidents and how to avoid them.
• Provides drivers with practical advice on how to drive and manoeuvre safely.
• Enables delivery service partners (DSPs) to have greater control over claims and insurance costs.
• Enhances the overall claims experience. 

Encouraging safe driving prevents attritional losses resulting from incidents that lead to claims costs, vehicle downtime, time-consuming administration, and potential reputational damage. Here we discuss five aspects of an effective fleet risk management programme.

1. Policies and procedures 

Clear and concise procedures will help ensure drivers understand the expectations placed upon them, how to report incidents, the steps to take to address maintenance issues, and the importance of risks such as speeding, fatigue, and driver distraction.

Policies must be communicated clearly, ideally with drivers signing a training record to confirm that they have received, understood, and had the opportunity to raise questions regarding the policies.

2. Driver training  

Driver training raises awareness of common hazards, helps drivers avoid repeat mistakes, and promotes adherence to policies on incident reporting. 

Relying solely on a driver’s licence is insufficient to verify a driver’s current ability to operate a vehicle safely. Drivers who have recently passed their driving test may lack experience, while those that obtained their licence several years ago may have developed bad habits. 

All drivers should receive training to refresh the principles taught to them when they first learned to drive. Training should cover the following topics:

• Speed awareness
• Maintaining safe distances when driving
• Hazard awareness
• Driving in poor conditions
• Manoeuvring around hazards and steps to avoid reversing incidents 
• Vehicle familiarity  
• Incident management

Training can be provided through online courses to ensure accessibility and facilitate easy tracking and recording. Ideally, training should be refreshed on an annual basis to reinforce the core principles. 

When drivers have experienced an incident or raised concerns, one-to-one coaching can help them develop good driving habits and build confidence. 

3. Rewards and incentives

Vehicle technology, such as telematics, can be used to identify poor driving behaviour that should be addressed through re-training. However, it is also possible to use these tools as part of an incentive programme. Driver league tables with prizes for the best performer and/or most improved driver can help encourage drivers to focus on their driving habits.

4. Distracted driving

Distracted driving is a critical safety issue for delivery drivers, particularly as the use of devices is often necessary. Engaging with smartphones or handheld tablets for navigation and communication while behind the wheel significantly diverts attention from the essential task of safe vehicle operation. This distraction not only increases the risk of accidents but also endangers the safety of the driver, pedestrians, and other road users. To address this issue, it is imperative for drivers to adopt a proactive approach to safety by using hands-free technology, pre-setting navigation systems before commencing journeys, and not interacting with devices while driving. Incorporating these practices into your safety policy and training programme can reinforce the importance of vigilance and responsibility among drivers.

5. Learning from incidents 

Each incident should be investigated to understand what happened. The location of the incident, time it occurred, individuals involved, and the reason behind it should be identified. The lessons learned can then be integrated into future training. 

It’s also important to stay abreast of claims and their causes to identify trends and patterns related to the incident type, vehicle used, driver, location, or environment, for example. Any trends need to be understood and, if possible, fed back to your driver management team. It is important that incidents trigger some form of follow up action proportionate to the circumstances to prevent the development of a culture where incidents simply are not seen to matter.   

Implementing a suitable risk management strategy can enable your business to:

• Reduce claims and vehicle repair costs.
• Keep vehicles on the road and fully utilised.
• Save valuable time for you and your management team.
• Improve staff morale and reduce driver turnover.
• Evidence compliance with regulatory requirements, such as health and safety and road traffic legislation. 

If you have further questions or need assistance, please contact your Marsh adviser.