If you don’t know where you are going, any road will get you there.” – Lewis Carroll

A wonderful moment recently arrived when my 17-year-old daughter passed her driving test. The reasonably priced insurance premium for her as a “provisional driver” instantly expired. So, we needed to find her some proper car insurance.

The car insurance comparison websites clearly reflect the risks associated with 17-year-old drivers in their annual premiums. The quotes ranged from £850 to about £7,500 per annum. Even though the terms and conditions varied, the one common denominator linking all 20 of the quotes was the need for a “black-box” insurance telematics device to be fitted in the car.

In general, these black boxes contain electronics to closely monitor one’s driving practices and use GPS with a SIM card to communicate driving data to their insurance company HQ. The driving data is analysed for compliance and various reports and charts are made available to the insured driver via an app. Good drivers might be rewarded with extra monthly miles and a reduced insurance premium, while things can get problematic for those not in compliance. The black box – now hidden in my car’s engine compartment – tracks driving habits, including speed, sudden or rapid acceleration and braking, where you drive, and how many miles, what time of day and on what kinds of roads you drive.

The problem is I have absolutely no idea how compliant anyone driving my car is or what the penalties might be. There’s no transparency into how the device works. For instance, I don’t know if the box is accurately gauging my speed or what value of acceleration would make the driver noncompliant. I clearly want my daughter and anyone driving my car to be compliant, but bad habits will naturally start to appear.

While the black box is tracking everything related to the car, it’s not giving any useful feedback. The best result of a bad situation is accidental non-compliance while the worst deliberate non-compliance – most likely triggered by ignorance – with associated penalty fees and increased costs going forward.

But I would welcome a system with that type of telematics technology if it could:

  • Provide continuous feedback on a driver’s compliance to mitigate the risks of accidental or deliberate compliance failure
  • Offer alerts when a driver’s compliance boundaries might be close to being exceeded or have been exceeded
  • Help optimize driver practices to reduce both present and future premium costs
  • Help manage various driver contracts to reduce ongoing costs and to allow me to remove any unnecessary insurance components (replacement key cover, child car seat cover, misfuelling cover, breakdown cover, etc.)
  • Track drivers’ usage models to optimize renewals and reduce potential denials of insurance cover caused by poor driving practices
  • Improve a driver’s safety levels and operational efficiency

Like driving with a block box, keeping your enterprise-level software or IT asset management in compliance is equally challenging, if you lack significant automated technology to help optimize product licences to reduce spend and eliminate risk. Without it, the likelihood increases for unexpected or unbudgeted costs and vendor audits. Projects might have to be cancelled or postponed, as allocated funds get channelled elsewhere. Precious time is wasted in a maze of paperwork to reconcile purchases with licence entitlements, rather than being focused on enterprise priorities.

The list above also would a great place to begin for determining capabilities for a dynamic asset management solution, if you simply change the concept from “driving” to “asset management.” And as it turns out, you’ll find all those features out of the box with Flexera’s FlexNet Manager Suite (FNMS).

Don’t run the risk of noncompliance. Optimise your licence position sooner rather than later.

“If you think compliance is expensive; try non-compliance” – Former U.S. Deputy Attorney General Paul McNulty.

Read more about Flexera’s software asset management solutions.

Source: https://www.flexera.com/blog/elo/2019/10/driving-for-continuous-compliance/