Mercia Fleet Management has successfully reduced its insurance expenditures by 25% through innovative use of artificial intelligence (AI) in driver profiling and accident analysis, amidst a backdrop of soaring insurance premiums.
Recent data from an unnamed insurance comparison platform indicated a sharp 43% rise in insurance rates over the past year in the UK. In contrast, Mercia Fleet Management, a division of Fleet Evolution specializing in electric vehicle (EV) salary sacrifice, has achieved significant savings by collaborating with London-based insurance broker Konsileo Commercial Insurance.
The strategy involved meticulous analysis of data from a fleet comprising 1,000 vehicles. By identifying optimal interventions, Mercia pinpointed several effective measures to curtail insurance costs. These included rigorous driver profiling, remedial behavior training, spatial awareness programs for car park and roadside incidents, regular license checks, and comprehensive vehicle risk management assessments.
A noteworthy finding from their analysis highlighted that EVs in their fleet demonstrated a lower accident rate compared to internal combustion engine (ICE) vehicles. Despite marginally higher repair costs per incident for EVs, overall repair expenses were lower due to fewer accidents. This outcome was attributed to advanced driver assistance systems (ADAS) commonly equipped in modern EVs, such as lane departure warning, automatic emergency braking, and blind spot monitoring.
Andrew Leech, Head of Mercia Fleet Management and founder of Fleet Evolution, emphasized the significance of their approach: “We partnered with Konsileo and adopted a meticulous cost-by-cost analysis to identify impactful interventions on accident levels and repair costs within our fleet.”
“Key among these interventions was AI-enhanced driver profiling, utilizing a traffic light and points-based system to target high-risk drivers for remedial training,” Leech added.
Leech also underscored the scalability of their strategies, stating, “These interventions are applicable across fleets of all sizes. We are eager to engage with smaller clients to demonstrate how similar processes can effectively reduce their insurance premiums.”
Mercia Fleet Management’s success story serves as a testament to the transformative potential of AI-driven solutions in managing and mitigating operational risks within fleet management.
