Fleets are taking a proactive approach to improve safety by investing in technology and coaching drivers, but some situations are beyond a fleet’s control. Certain geographic locations in the U.S. create increased risk, and knowing where these are can help fleets avoid the exposure that comes with them. 

Munich Re Specialty uses Route Scores to help fleets identify risk factors in the lanes they travel and uncover opportunities to mitigate that risk, helping them to not only keep their drivers, equipment, and cargo safer but also keep costs down. By using Route Scores, Munich Re Specialty works with fleets to find an insurance solution that benefits fleet owners, drivers, and the bottom line.

In the interview below, Leo Grimm, head of Mobility at Munich Re Specialty – North America, shares his insights on identifying geographical risk factors and reducing exposure. With more than 20 years of experience in the insurance industry, Grimm has extensive knowledge of solutions that can help fleets safeguard their operations.

What is a Route Score, and how can you use it?

A main component of transportation risk comes from where the truck travels and the routes it uses. More than five years ago, Munich Re Specialty started working with a Canadian fleet that had issues with so-called “hell-hole jurisdictions.” We started drawing on telematics data and creating correlations between exposure and the specific routes their drivers were using. We determined that if the fleet could avoid certain “hell holes,” it could potentially lower the rate.

Before, we would have fleets that would tell us, “My trucks don’t go into the Bronx. I can guarantee you that, so I’m not going to pay the rate for the Bronx.” Now, with telematics, we have the capacity to see exactly where trucks are traveling in the United States and the risk associated with those routes.

We look at the past month’s data and, from there, can determine which exposed zones the trucks touch and which ones they do not touch. For example, let’s look at a truck that runs from Seattle to Denver: There is a big difference in exposure for a truck that travels through a certain “hell-hole” area and one that travels around it.

Being very granular, we look at several components around risk and its impact on rates. We have a database on settlements and average claims in the geographic locations. Data on different types of roads and the rate of fatalities on them is also factored in. There are big differences between interstates, smaller arterial routes, and urban routes.

Starting with the data, we begin to optimize the routing solutions. The closer we work with the fleet owner, and the more transparent the fleet owner is, the more we can refine the score and help manage rates.

Can you work with any telematics device?

We call ourselves device agnostic because we realize that most fleets already have some type of telematics technology on board. We have the ability to read data from most technology providers, so nobody has to be concerned about having to purchase a Munich Re Specialty device.

How does safety factor into a fleet’s Route Score?

Safety is crucial. Today, more safety technology is available to help limit certain exposures. Advanced driver safety systems and braking systems can help reduce reaction times, aid the driver, and increase reaction times. Outward-facing cameras that capture video are very effective in not only coaching drivers but also defending drivers. Having video evidence is especially valuable in aggressive jurisdictions. 

Could you use a Route Score to help fleets determine a more cost-effective route?

Routing is essential, and we can work with fleets to find the best routes in less exposed areas. There are some areas that fleets can’t avoid. For example, Atlanta brings more risk, but it is a huge trucking market, and fleets might not be able to avoid it. However, there are many situations where we can coach fleets around certain hot spot areas or certain road types that they are better off not using. We take into consideration timing, mileage, potential exposure, and other factors to identify the most cost-effective route.

Is a Route Score the same as a CSA score?

No. They are two completely different scores. The Route Score is a very concrete measurement of the geographic exposure of the fleet in the space. It is not behavior-based. The Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability (CSA) score measures a range of factors, including those that result from drivers’ actions. That is the main differentiator, but we also look at a much different time range of data compared to CSA, which factors in 24 months of information. Ours is much shorter, so we can reflect what the fleet is doing right now.

What would you want fleet owners to know about Route Scores?

We are using Route Scores to aid us in providing a concrete answer to their concrete exposure. We’re trying to quantify their daily exposure and reflect that risk in our insurance product. We view this as a relationship, and we want to work together to create the ideal product for the fleet. Route Score is one way to do that.

This article was produced by Fleet Owner, in collaboration with Munich Re Specialty – North America.