Telematics can help improve driving behaviour on the nation's lethal roads

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Last month, 11 people lost their lives and 55 were injured when a bus crashed while returning from a political rally. Irrational driving behaviour was reported to have led to the preventable road incident. The cost of these crashes is significant and far-reaching. To loved ones, the pain haunts them for many years, with some losing their sole breadwinners. Many survivors have to endure the consequences of disabilities for the rest of their lives. The burden on the state is significant. When working people die, their productivity is lost from the economy, as well as their much-needed expertise.

About 14,000 lives are lost on South African roads annually in motor vehicle crashes. The cost is R300bn a year for emergency services, healthcare, loss of earnings and care of the disabled. These funds could have been deployed to make the lives of all South Africans better. The insurance industry spends more than R22bn every year on motor claims alone, and the Road Accident Fund pays out more than R30bn compensating people injured in road accidents annually.

The United Nations reports 1.2 million people are killed worldwide on roads every year including pedestrians. SA ranks poorly compared with other countries. According to the World Health Organisation, SA is one of a few countries that had a deteriorating rate of road deaths in the past decade. In the US, there are 12 deaths for every 100,000 road users. In stark contrast, for every 100,000 South African road users, 32 die.

There are concerted efforts by national and local government, nongovernment organisations, academics and the private sector to improve this situation. Discovery Insure participates in the National Road Safety Advisory Council, and Discovery Insure's core business model gives incentives for good driving.

Changing behaviour

The responsibility to curb road carnage lies with road users. A change in behaviour can have an immediate and significant effect. Driver error accounts for about 90% of road crashes. These errors involve speeding, reckless driving, distracted driving (which includes the use of cellphones), falling asleep at the wheel and driving under the influence of alcohol.

Changing driver behaviour is complex, and involves giving users appropriate incentives. Telematics-based insurance is built on the idea that if drivers' behaviours can be measured accurately and objectively, it is possible to reward good driving. Technology is now readily available to all consumers, and insurers are able to offer meaningful incentives for good driving. The technology has safety features that can detect vehicle crashes and provide emergency medical support.

No matter how safe a car is or how good the weather, road conditions, signage and traffic regulations, if a driver makes a significant error, an accident will most likely occur. Despite most drivers having had some form of formal driving training, they are still prone to human error and poor judgment. They may display poor driving behaviour, which increases their likelihood of causing an accident.

The combination of the latest in telematics and behavioural economics science provides clients with detailed driving information in an easily accessible, cost-effective manner, and is paired with improvement tools and appropriate incentives to create the desire, need, and ability for people to become better, safer drivers. A shared-value approach encourages individuals to drive better through powerful incentives. In doing so, we can create a nation of great drivers.

Source: Business Day