Telematics emerges as a lifeline for struggling commercial auto insurers

Finance17 Dec 2025

Sponsored by SambaSafety

Matt Scheuing, CEO, SambaSafety

Telematics has quickly taken centre-stage, becoming a lifeline for the struggling commercial auto insurance industry. Although insurers are battling mounting losses, they are also finding success in the data intelligence arena.

The urgency is evident: claims severity has surged by 36 per cent since 2020, driven by soaring repair costs, medical inflation and escalating litigation. As insurance costs climb, fleet operators face double-digit annual increases.

“Insurance is driven by underlying cost patterns,” says Matt Scheuing, CEO of SambaSafety. “When losses escalate, those costs get passed along with a premium added on top. Fleet operators are the ones paying the price.” The root cause of the risk remains stubbornly human. The SambaSafety 2025 Risk Report suggests speeding alone accounts for nearly 40 per cent of all major violations in the US, with distracted driving attributing to 3,275 fatalities in 2023.

“Human behaviour is the leading reason behind crashes,” Scheuing notes. “Speeding, impairment, distraction, [driving with] suspended licences – these behaviours are compounding into the claims severity increases insurers are seeing.”

Despite the mounting pressure, insurers lack visibility into the very risks that contribute to the losses the market is experiencing, especially between annual renewal periods. The visibility gap creates a reactive cycle that perpetuates the crisis rather than solves it.

Data overload paralyses fleet safety efforts

Fleets have never had more safety data. In 2025, 70 per cent of fleets use two or more telematics devices to manage safety, according to SambaSafety’s 2025 Telematics Report. Telematics devices, in-cab cameras, continuous monitoring tools and training platforms all generate a constant stream of events and alerts.

On paper, commercial fleets have never been more data-rich. In practice, they’re paralysed.

“Fleet operators are flooded with data and can’t make sense of it,” says Scheuing. “More data doesn’t always equal the answer.”

The problem creates missed opportunities – critical coaching moments that could prevent risky driving behaviours from escalating into crashes.

Insurers face a parallel challenge. While they recognise the value of telematics data for underwriting and risk control, inconsistent inputs across dozens of data sources make it nearly impossible to scale programs beyond pilots.

Without a unified way to interpret the flood of information, both fleets and insurers will continue to struggle with data overload. The result is an innovation bottleneck: siloed ecosystems where data resides in disparate places, and no one can act effectively.

Why separating signal from noise leads to change

SambaSafety has spent over 25 years building driver risk intelligence, evolving into a comprehensive platform designed to break through the bottleneck.

“Our job is to separate the signal from the noise,” says Scheuing.

The company’s Risk Cloud consolidates data from over 3,000 data sources into a single driver risk profile, providing an intuitive and accurate scoring model known as the Risk Index.

“We distil all of that data into one simple driver risk profile that’s clear, actionable and predictive – similar to your credit score,” Scheuing explains. This model eliminates data silos, provides interoperability across data sources and establishes a common language that everyone can understand.

A key differentiator is continuous monitoring. Annual risk assessments at renewal are no longer sufficient. The Risk Cloud constantly monitors driver records and behaviour, flagging high-risk activities such as licence suspensions. “Continuously monitoring for record changes and flagging high-risk behaviours is our secret sauce,” he says.

The platform uses this data and artificial intelligence (AI) to connect insurers, brokers and fleets to build dialogue around risk and safety. Insurers identify and reward proactive fleets through programs such as SambaSafety Verified, which recognises operations actively managing risk. Brokers can advocate for clients with confidence, and fleets see tangible returns on their safety investments.

A paired approach shows promise

Data-powered capabilities, such as driver monitoring and training, show promise for the commercial auto insurance industry and its insureds. And for SambaSafety, they’ve delivered. Fleets that combine continuous monitoring with training reduce violations by 77 per cent within 12 months.

A multi-year fleet study revealed that consistent platform use resulted in a 22 per cent reduction in claims frequency and a significant 50 per cent reduction in claims involving bodily injury. For a typical trucking operation, these improvements can translate into millions of dollars in reduced claims costs and premium relief. “We’re at a pivotal moment where we can move from reactive risk management to proactive risk prevention,” says Scheuing.

Risk is not random, and Scheuing is confident that the principle will help the industry turn the corner. If insurers and their policyholders consistently use data and risk tools, they’ll see better outcomes. As AI and advanced analytics continue to mature, they enable technology solutions such as SambaSafety to scale while driving clarity through complexity.

The decade-long profitability crisis in commercial auto insurance isn’t forever. However, solving it will require moving beyond data collection to genuine intelligence that changes behaviour before crashes occur, and building an ecosystem where insurers, brokers and fleets can finally align and work from the same playbook.

For more data and research on commercial auto risk trends, visit sambasafety.com/insights

By Arissa Dimond, Insurance Content Manager, SambaSafety

SambaSafety is a recognised innovator and leading provider of cloud-based risk management solutions for over 15,000 organisations with automotive mobility exposure. Employers and insurers benefit from SambaSafety’s continuous monitoring, intuitive insights, targeted training and risk data. Learn more about SambaSafety and the work they are doing to reduce roadway risk at sambasafety.com.