Mr. Conor Jensen, Analytics Program Director, Zurich North America

Mr. Conor Jensen, Analytics Program Director, Zurich North America

Mr. Conor Jensen 
Analytics Program Director 
Zurich North America

Q. Understandably, the move from paper logging to ELD is going to impact the trucking industry. But why is the insurance industry getting into gear to embrace this change?

The insurance industry has long been a consumer of data for better understanding of the risks that it and its customers face together. As the trucking industry utilizes electronic data capture, carriers will be able to utilize more sophisticated analytics to gain deeper insights into those risks.

Q. How do you quantify the level of customer acceptance and anticipated future adoption rates across the independently operators and fleet operators for e-logs?

As with most advances in technology, it will only come once the benefit of the improved information gained by e-logs outweighs the cost of implementing such systems. This is especially true when it comes to the personnel resources necessary to wring the value out of the data.

Q. What immediate impact do you see this having on insurance business models?

This largely depends on two primary factors. 1- How willing the trucking operators will be to give insurers access to the data (and how insurers are able to convince the operators of the return benefit). 2- The consistency of the data from different telematics providers and the ease of using the data for risk assessment purposes. These two hurdles have prevented any immediate impact from taking place, but given the current state of commercial auto balance sheets, insurers have a significant incentive to move this forward sooner.

Q. How will commercial insurance policies need to evolve in the context of the move from paper logs to e-logs?

The largest consideration I'm aware of at this point will be around the agreements for the use of the data, especially from a compliance perspective as the data becomes more individualized, rather than just at aggregate levels.

Q. How do you feel insurers are translating pricing models to increase benefits for their clients

The increased granularity of the information available and the sophistication of the systems to harness that data are allowing for more specific risk allocation. The pricing models will most likely converge on being much closer to how personal auto is written, at the driver and vehicle level rather than composite ratings.

Q. What kind of pricing plans are they offering and how are they being developed?

As of yet I haven't seen a large shift in the plans themselves, just more sophisticated versions of typical plans. I do believe we'll see commercial plans become more similar to personal auto pricing plans over time.

Q. Why is it important for the insurance to come together and be part of the conference at this time?

Historical and go-forward information around driver behavior as well as the amount that vehicles are used in incredibly important in appropriately assessing the risk of commercial fleets. As commercial fleets move more and more towards electronic logging, partnering with their insurance carriers to harness theses new data sources will be a huge strategic advantage in safely managing their operations if done correctly

“As commercial fleets move more and more towards electronic logging, partnering with their insurance carriers to harness theses new data sources will be a huge strategic advantage in safely managing their operations if done correctly”