What Are the Basic Elements of Building a Successful Telematics Program?

Implementing a successful telematics program requires several foundational elements that work together to create meaningful results. According to professionals at The Hartford, the approach should be comprehensive and people-focused.

“Building a successful telematics program involves several key components centered around using data safely and transparently. It’s essential to view telematics as a people effort powered by technology, not just a technology effort,” said Ashley Valour, Auto Product Director for Middle and Large Business at The Hartford.

Before launching a telematics initiative, organizations need to establish clear objectives. “When it comes to implementing a successful telematics program, there are several key factors to consider. First and foremost, it’s essential to have a clear understanding of your goals and objectives. What do you hope to achieve with the program? Is it to improve driver safety, reduce costs, or both?” Valour explained.

Ashley Valour, Auto Product Director for Middle and Large Business, The Hartford

Understanding legal requirements is another critical preliminary step. “Before starting, it’s crucial to understand state privacy laws and have an implementation plan in place,” Valour said. “Additionally, basic fleet management controls such as driver selection, training, placement, and supervision should be established, as the telematics program will build upon these fundamentals.”

Driver engagement represents one of the most crucial elements of a successful program. “The most common concern we hear from drivers is around data privacy – the worry about ‘big brother’ surveillance. It’s crucial to create a culture of safety and ensure that drivers understand the goal is to get them home safely,” Valour noted.

To address these concerns, transparency is essential. “Getting buy-in from drivers is important. Explain why you’re implementing the technology, especially if cameras are involved. Give them the chance to interact with the technology before going live and clarify what triggers camera recordings and who has access to that footage,” Valour advised.

Creating a supportive environment where telematics is viewed as a safety tool rather than a surveillance mechanism helps drive program success. “Creating a culture of transparency and safety is vital. Fostering a team environment where everyone is committed to getting their coworkers home safely and protecting the brand is key,” Valour said.

What Are Some of the Ancillary Benefits A Telematics Program Might Produce?

While safety improvements and accident reduction are primary goals of telematics programs, organizations often discover numerous additional benefits that extend beyond insurance considerations.

“Telematics provides value to customers even before the insurance relationship comes into play. Customers purchase telematics independently for worker engagement, brand protection, fuel economy savings, and maintenance savings, gaining direct benefits prior to insurance considerations,” said David Turner, AVP Innovation and Risk Solutions –  IoT, Technology & Data at The Hartford.

One significant ancillary benefit is improved driver retention in an industry where qualified drivers are increasingly difficult to find and keep. “Telematics can also contribute to driver retention. Customers can build programs around driver rewards, ensuring their safest drivers are the most rewarded. This is something customers can implement on their own,” Turner explained.

The technology can also serve as protection for drivers who might otherwise be blamed for incidents they didn’t cause. “It’s also important to highlight how video can exonerate drivers in case of incidents and celebrate accident preventions that happen as a result of the technology. When drivers see the value and understand that it can keep them safe, it can go a long way in enhancing employee engagement and retention,” Valour said.

Beyond operational benefits, telematics programs can strengthen the relationship between insurers and their clients. “Building trust between an insurance carrier and a customer through initiatives like telematics can have far-reaching benefits beyond the specific program. When customers see positive results and understand the value of such initiatives, it builds confidence in the carrier’s ability to deliver effective solutions,” Turner noted.

This trust creates a foundation for broader risk management collaboration. “This increased trust can lead to greater openness and engagement from customers in other areas of loss prevention and safety. As the relationship strengthens, customers are more likely to participate in and benefit from additional initiatives proposed by the carrier, creating a virtuous cycle of trust and mutual success,” Turner added.

The technology landscape for telematics continues to expand, offering increasingly sophisticated capabilities. “The network of telematics has expanded significantly beyond the basic ABCs (acceleration, braking, and cornering). New capabilities include equipment tracking, trailer tracking and monitoring, environmental monitoring, and theft prevention,” Turner explained.

What is The Hartford Bringing to the Table in Terms of Experience and Vendor Relationships?

David Turner, AVP Innovation and Risk Solutions – IoT, Technology & Data, The Hartford

Navigating the complex telematics marketplace can be challenging for fleet managers. The Hartford has developed experience and partnerships to help clients select and implement the right solutions for their specific needs.

“With the numerous telematics options available in the market, customers face a wide array of choices every day. At The Hartford, we have set up a program partnering with a network of proven telematics providers. We can help customers navigate these options to find the best fit for their needs and support them after they make their final decision,” Turner said.

These partnerships deliver tangible benefits to clients beyond just technology recommendations. “Our relationships with these vendors offer customers great benefits, such as referral discounts and services that focus on increasing their value,” Turner explained.

The Hartford recognizes that telematics solutions aren’t one-size-fits-all and works with clients to identify the most appropriate technology for their specific situation. “When rightsizing the solution, some companies may save money with bring-your-own-device models or cell phone-based solutions, while others may benefit more from a fully integrated device and camera solution. It’s crucial not to assume that the cheapest option is the most valuable, as the best programs are easy to manage and provide actionable insights for the fleet, regardless of the company’s size,” Turner noted.

Beyond vendor selection, The Hartford provides guidance to help clients maximize their telematics investment. “We take it a step further by bringing our trained risk engineering team to help clients get the most from their telematics investment. Additionally, we have several emerging features that will provide valuable support from a claims perspective when it matters most,” Turner said.

The company’s approach emphasizes the importance of viewing telematics as a strategic investment rather than just another expense. “Telematics should be viewed as a capability and a tool rather than just another expense. Like purchasing a new truck, trailer, or real estate, telematics becomes a core asset for value creation when used effectively,” Turner explained.

For The Hartford, successful telematics implementation is about creating partnerships focused on client success. “At The Hartford, we proudly partner with brokers who share our focus on safety, service, and care for the customer, regardless of the client’s size,” Turner concluded.

To learn more about telematics and other IoT technologies, visit www.thehartford.com/loss-control/iot-innovation-lab.

The information provided in these materials is intended to be general and advisory in nature. It shall not be considered legal advice. The Hartford does not warrant that the implementation of any view or recommendation contained herein will: (i) result in the elimination of any unsafe conditions at your business locations or with respect to your business operations; or (ii) be an appropriate legal or business practice. The Hartford assumes no responsibility for the control or correction of hazards or legal compliance with respect to your business practices, and the views and recommendations contained herein shall not constitute our undertaking, on your behalf or for the benefit of others, to determine or warrant that your business premises, locations or operations are safe or healthful, or are in compliance with any law, rule or regulation. Readers seeking to resolve specific safety, legal or business issues or concerns related to the information provided in these materials should consult their safety consultant, attorney or business advisors. All information and representations contained herein are as of May 2025.

The Hartford Insurance Group, Inc., (NYSE: HIG) operates through its subsidiaries, including underwriting company Hartford Fire Insurance Company, under the brand name, The Hartford®, and is headquartered at One Hartford Plaza, Hartford, CT 06155. For additional details, please read The Hartford’s legal notice at www.TheHartford.com. © May 2025 The Hartford.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with The Hartford. The editorial staff of Risk & Insurance had no role in its preparation.