Presentation Topics. Crash Frequency Benchmarks 3/29/2018

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1 Crash Frequency Benchmarking and behavioral Approaches to Fleet Safety Session 746 Modified for Wisconsin Safety Council 2018 Safety Conference Peter Van Dyne, MA, CSP, CFPS Technical Director, Liberty Mutual Insurance Our risk control service is advisory only. We assume no responsibility for management or control of customer safety activities nor for implementation of recommended corrective measures. This presentation is based on information supplied by the customer and observations of conditions and practices at the time of the visit. We have not tried to identify all hazards. We do not warrant that requirements of any federal, state, or local law, regulation or ordinance have or have not been met. This report does not create coverage. Only your policy or contract provides coverage subject to its terms, conditions, and exclusions. Presentation Topics Crash frequency benchmarks Elements of effective programs Driver behaviors vs. driver knowledge Continuous improvement Telematics use and results Fleet program best practices Crash Frequency Benchmarks Metrics for benchmarking Larger sample sizes vs. closer comparison Impact of location, vehicle and industry 1

2 Location Impact Crash costs can vary based on liability laws and local climate Traffic volume Road configuration Driving styles State of Garaging State Expected Crash Frequency (rounded to the nearest 10 th ) Florida 4 Kansas 2.6 Massachusetts 6 Oregon 2.8 Rhode Island 4.3 All State Average 4 Contracting fleet with 100 medium trucks (10,001 to 20,000 GVW) Vehicle Types Types within in an industry may indicate use Regulated vehicles may have better qualified drivers Exposure (city streets vs. longer haul) 2

3 Vehicle Size/Type Vehicle Size (GVW Expected Crash Frequency (rounded to the nearest 10 th ) Light Truck 0 10, Medium Truck 10,001 20,000 4 Heavy Truck 20,001 45,000 4 Extra Heavy Truck Over 45, vehicle contracting fleet in the state of Florida Industry Industry can be an indicator of use Some industries have higher turnover Focus on trade or job skills over driving ability can impact crash exposure Industry Impact Industry Expected Crash Frequency (rounded to the nearest 10th) Contracting 2.9 Mercantile 2.9 Service 3.0 Energy and Utilities 3.7 Wholesale medium trucks in Colorado. 3

4 Benchmark Summary Compare your rates to others in the same industry, using similar vehicles in the same states Understand what counts as an accident or crash Industry data that does not adjust expected frequency for state of operation may be misleading Elements of Effective Programs Select drivers based on their driving history and ability to perform the job Establish and communicate expectations on how jobs should be performed and have supportive management practices Monitor task completion and performance to the expectations using metrics that measure results and risk Provide feedback on performance for both workers and management Adapt process to influence behavior that meets expectations Document the policies and adaptations Driver Selection Driving records Road tests Functional capacity evaluations Past reference checks Screening based on the job 4

5 Establish and Communicate Expectations Within the Performer s Control the person can complete the expectation without action by someone else Specific the situation in which the expectation is met is described in precise terms Measureable Observable under normal circumstances (Not requiring unique circumstances for observations Active requiring action for the expectation to be met (Versus no action) Reliable meaning is clear; two or more people observing the same action agree on whether it meets the expectation Tangible performance can be appraised with a Yes or No Monitor Performance and Task Completion Metrics Observations Compare like operations Monitor drivers and management Provide Feedback Have goals for drivers and management Measure risk and completion not just crashes Use benchmarks and median event rates Have regular conversations Avoid training as a solution unless lack of knowledge is an issue 5

6 Adopt process to change behavior Have consequences for performance that does not meet expectations Expect change and communicate desired performance Document policies and actions Fleet safety should prevent crashes Crash liability can depend on doing what is expected Have a story to tell Be able to prove what you have been doing Telematics Set event parameters to measure risk not compliance Establish a baseline Don t assume behaviors are due to a lack of knowledge Understand the range of event rates Focus on outliers and communicate what is expected Telematics Event Rates Maximum 73 Median 3 Mean 7.2 Minimum 1 6

7 7 Month Period 3/29/2018 Telematics Results 100 vehicles being used by multiple operating companies Original objective was not safety Turned on safety metrics for 1 month to get baseline event rates High event rate drivers were identified and management talked to them rather than trained them 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Percent reduction in speeding events last week in Nov 2016 to first week of Feb % Root Causes of Aggressive Driving Effectiveness of past coaching Motor Vehicle Record (MVR) violations prior to and after hire Driving expectations Driver Knowledge of the expectations Vehicle and work experience Fatigue Scheduling or changes during the day or inadequate travel times Routing of drivers Compensation systems that may unknowingly encourage aggressive driving Data integrity/telematics device performance Consequences for performance that do not discourage aggressive driving Driver outside work responsibilities/situations Multiple jobs requiring late starts to on time completion Commuting times On Time departure at Start Of Work Day Distractions Vehicle condition Breaks and lost time during the work day Work flow or scheduling exceptions Health and wellness MVDP Implementation Timeline ABC Company saw positive results from implementation of the MVDP program by following this sequence of events over a 7-month period. February 2017 Selected Telematics Services Provider Learned How To Use Data Dashboard Compiled Aggressive Driving Event Data All Vehicles / Drivers April Week Review Period: February - April April July 2017 One on One Driver Interventions Individual driving behavior management strategies Refreshed Aggressive Driving Event Data All Vehicles / Drivers September Week Review Period: July - September Liberty Mutual Insurance 21 7

8 Baseline Benchmark Data for a 10- Week Period Highest Rate 51.3 Average Rate Median Rate Liberty Mutual Insurance 22 Driver Interventions What do we do with the data? Next Steps Schedule one on one interview sessions with each of the drivers with significantly high event rates (worst performers) above the Median Share results of analysis with the driver Discuss factors that contribute to the aggressive driving exhibited in the data Driver and supervisor affirm a strategy for managing the aggressive driving behaviors Defensive Driving tactics incorporated into intervention discussions Plan follow-up reviews to discuss improvement or regression Schedule one on one interview sessions with all other drivers Compliment and reinforce desired behaviors for those with favorable rates below the Median Remind these drivers of the importance of defensive driving behaviors Liberty Mutual Insurance 23 Driver Interventions How do we document this? Liberty Mutual s Driver Telematics Root Cause Analysis guide is used to conduct and document one on one interventions with each driver. Then, days later a new data benchmark analysis was run on the drivers. Liberty Mutual Insurance 24 8

9 Baseline Benchmark RESULTS!! Highest Rate Average Rate 4.86 Median Rate 3.69 Liberty Mutual Insurance 25 Ten Best Practices Identify all jobs that require the operation of motor vehicles Adopt a policy that only employees on the list of approved drivers may operate motor vehicles on company business Establish, follow and audit a motor vehicle driving record verification program Ten Best Practices (cont.) Establish, document, communicate and reinforce distractions policies Identify use of non-owned vehicles and establish controls Establish, document and reinforce driving behaviors for the operation of motor vehicles on company business 9

10 Ten Best Practices (cont.) Document crash reporting protocols and crash scene documentation Establish vehicle maintenance standards and vehicle inspection process Identify fatigue triggers and establish a process address fatigue Establish a process to monitor driving performance 10