Facility Association (FA), is announcing it will launch a telematics program for truck drivers in Alberta, effective May 1, 2023.
The objective of the program is to help drivers and operators improve driving habits and correct poor driving behaviours that have been observed through a video-enabled telematics device. Enrollment in the telematics program is voluntary, and participants would qualify to receive an incentive reduction in premium of up to 8%. More importantly, participation in the program may qualify them to return to the standard market where they would enjoy more choices and lower prices for coverage.
“One of FA’s primary objectives is to have as minimal market presence as possible. When we see trends of our market share growing as we have in Alberta with interurban vehicles, we look for ways to try and get drivers back into the standard market,” said Saskia Matheson, President & CEO of Facility Association. “There are a variety of reasons why drivers end up with FA, but poor driving habits or behaviours are the most common. Being insured through FA is meant to be temporary. We believe that consumers are best served in an open and competitive insurance market and this new telematics program can help them get there.”
How the program works
Here is how the program will work. FA has partnered with Foresight Insurance Analytics Inc which installs the telematics device and manages all the data received. A score is generated on a daily basis and shared online with the customer, which allows them to improve their score over time and correct poor driving habits that have been observed. The score is based on the interaction of multiple incident types. These incidents are typical for telematics programs and include risk factors such as red light violations, distracted driving, following too close, hard braking, late braking, weaving in and out of lanes, hard-on gas, harsh turning, no seatbelt, and lane violations. FA does not have access to, nor receive any of the data that is used to generate a score, which protects the privacy of the driver. FA will collect mileage driven outside of Alberta, for IU Telematics participants, to assist in accessing data related to the location of operation, which helps ensure the premium reflects the level of risk.
“Since 2018, our market share of trucks in Alberta has increased significantly. FA saw a 47% increase in vehicle count in 2021 over 2020 and a further 14% in 2022 over 2021. We know this is not sustainable going forward and it’s the primary reason this program needed to be launched now,” said Fadia Charbine, Vice President, Underwriting, Claims & Operations. “We recognize the importance of the trucking industry to the Alberta economy. By providing daily feedback, this program not only provides drivers with additional training and experience, but it will also support safer roads and highways in the province.”
Another level of training
“This is a great program that will provide drivers with another level of training, which strengthens their experience behind the wheel. With more experience, we are optimistic that this will help move more risks out of FA and into the standard insurance market,” said, George Hodgson, CEO of the Insurance Brokers Association of Alberta.
“As the leader in promoting and advancing trucking safety in the province, the AMTA fully supports Facility Associations’ introduction of a telematics program as a means to potentially lower insurance costs for trucking companies,” said Willie Hamel, President, Alberta Motor Transport Association. “This initiative provides drivers with real-time feedback on how to improve their driving habits, which will help improve the safety of our roads, and provide drivers the experience they need to have access to lower insurance rates.”
Following the launch in Alberta, FA intends to explore opportunities in other provinces to determine if there is a desire to establish a similar program.