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Employee Cell Phone Use While Driving: Understanding and Managing Corporate Liability
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Transcript of Employee Cell Phone Use While Driving: Understanding and Managing Corporate Liability
Employee Use of Phones While DrivingUnderstanding and Managing Corporate Liability
Presentation to GRITS Annual Meeting – November 2011Matt Howard, Co-founder and CEO
Proprietary & Confidential
FIVE KEY POINTS
Employee use of phones while driving is risky business
Growing problem for fleet operators / self-insured companies
Increases crashes / employer liability / insurance costs
Affordable enforcement solutions exist
1
3
2
4
5
FMCSA regulations apply / CSA implications rising
DISCUSSION TOPICS
The behavioral problemThe business problemThe market segmentsThe solution optionsThe case studyThe future
BEHAVIORAL PROBLEM
Adults (employees) have an insatiable appetite for mobile web…even when driving.
Survey says???
BEHAVIORAL PROBLEM
47% of American adults1 who text and 50% of employees who use smartphones2 – admit to doing so while driving.
1 Pew Internet & American Life Project, 20102 CareerBuilder, 2009
BEHAVIORAL PROBLEM
Multitasking is an oxymoron. Humans can’t do two things at once without impairment to one or both tasks.
Modern multi-taskers (your employees) are “suckers for irrelevancy,” have “less self-control,” and are “distracted by everything”.
3 Nass, Ophir, Wagner – Stanford University, Aug 2009 -- Proceeding in the National Academy of Sciences
Experiment AInability to Ignore Irrelevancy
Experiment BInferior Memory
A B C A D E
Experiment BInferior Task Switching
A E U2, 12, 30
D R S9, 17, 35
BEHAVIORAL PROBLEM
ILLUSTRATION EXERCISE
Exercise 1•Open text or email
•Type ‘Multitask”
•After each letter add a number: M1 U2 L3 T4 I5 T6 A7 S8 K9
Exercise 2•Now do the task individually
•Type the word – Multitask
•Then when finished type the numbers 1 – 9.
Multitasking takes longer = more mistakes4 The Myth of Multitasking: How Doing It All Gets Nothing Done – Dave Crenshaw.
THE BUSINESS PROBLEM
1 – 47% of texting adults admit to sending or reading messages while driving2 – Multitasking is oxymoron. TWD = 23X more likely to crash.3 – 32% of employers know/suspect crashes. 7.6% have been sued. Insurers reacting.4 – Policies are easy. Compliance is hard. (62% / 53% / 61% / 0%)
0% Enforcement
More likely to crash23xAdmit to sending or reading text messages while driving
47% Have paper policies62%Have known crashes32%
Have been sued8%
THE MARKET: PHONES + VEHICLES
Com
pany
-ow
ned
Vehi
cles
Per
sona
lly-o
wne
d Ve
hicl
esCompany-liable Smartphones
All Other Phones 108m smart phones 43m company liable phones 6m with keys to company vehicle Blackberry / Android dominant
37,000,000Company phones in Personal vehicles
12,000,0004.2m company-liable feature phones
7.8m personally-liable phones
6,000,000Company-liable smartphones
360⁰Scope
ofRisk
THE MARKET: VEHICLES
18,000,000 Employees driving company vehicles
9m admit to texting, emailing, or browsing while driving
Regulation, Legislation, Crashes, Claims, Liability, Premiums
Sedan4m vehicles / 1.5m company-liable smartphones / 0% TEV
Local11m vehicles / 3.7m company-liable smartphones / 26% TEV
Trucking
3m vehicles / 20% company-liable phones / 60% TEV
THE SOLUTIONS
Passively measure employee use of phones while driving.
Passive Controls on Any Phone$2.50 per phone / per month
Actively promote safe and legal use of phones while driving.
Active Controls on Smartphones$2.50 per phone / per month
Phone-dependentActive Behavior ManagementWorks with/without Telematics Ideal for Local / Sedan Fleets
Phone-agnosticPassive Behavior ManagementRequires Telematics and TEMs data Ideal for Local Service / Trucking Fleets
For more information on preventing distracted driving, please visit http://zoomsafer.com