Employee Cell Phone Use While Driving: Understanding and Managing Corporate Liability


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Slides from ZoomSafer CEO Matt Howard's presentation on preventing work-related distracted driving, delivered to the Gulf Region Intelligent Transportation Society (GRITS) Annual Meeting on November 3, 2011

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Employee Cell Phone Use While Driving: Understanding and Managing Corporate Liability

  1. 1. Employee Use of Phones While DrivingUnderstanding and Managing Corporate Liability Presentation to GRITS Annual Meeting – November 2011 Matt Howard, Co-founder and CEO
  2. 2. FIVE KEY POINTS 1 Employee use of phones while driving is risky business 2 Increases crashes / employer liability / insurance costs 3 Growing problem for fleet operators / self-insured companies 4 FMCSA regulations apply / CSA implications rising 5 Affordable enforcement solutions exist Proprietary & Confidential
  3. 3. DISCUSSION TOPICS The behavioral problem The business problem The market segments The solution options The case study The future
  4. 4. BEHAVIORAL PROBLEM Adults (employees) have an insatiable appetite for mobile web…even when driving. Survey says???
  5. 5. 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
  6. 6. BEHAVIORAL PROBLEMMultitasking is anoxymoron.Humans can‟t dotwo things at oncewithout impairmentto one or bothtasks.
  7. 7. BEHAVIORAL PROBLEM Modern multi-taskers (your employees) are “suckers for irrelevancy,” have “less self- control,” and are “distracted by everything”. Experiment A Experiment B Experiment B Inability to Ignore Irrelevancy Inferior Memory Inferior Task Switching AEU ABCADE 2, 12, 30 DRS 9, 17, 353 Nass, Ophir, Wagner – Stanford University, Aug 2009 -- Proceeding in the National Academy of Sciences
  8. 8. ILLUSTRATION EXERCISE Exercise 1 Exercise 2 • Open text or email • Now do the task individually • Type „Multitask” • Type the word – Multitask • After each letter add a number: • Then when finished type the M1 U2 L3 T4 I5 T6 A7 S8 K9 numbers 1 – 9. Multitasking takes longer = more mistakes4 The Myth of Multitasking: How Doing It All Gets Nothing Done – Dave Crenshaw.
  9. 9. THE BUSINESS PROBLEM47% Admit to sending 23x More likely to crash 32% Have known crashes 62% Have paper policies or reading text messages while driving 8% Have been sued 0% Enforcement1 – 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%)
  10. 10. THE MARKET: PHONES + VEHICLES Company-liable Smartphones 37,000,000 6,000,000 Company-owned Vehicles Personally-owned Vehicles Company phones in Personal vehicles Company-liable smartphones 360⁰ Scope of Risk 12,000,000 4.2m company-liable feature phones 7.8m personally-liable phones 108m smart phones 43m company liable phones All Other Phones 6m with keys to company vehicle Blackberry / Android dominant
  11. 11. THE MARKET: VEHICLES Regulation, Legislation, Crashes, Claims, Liability, Premiums Trucking Local Sedan3m vehicles / 20% company-liable 11m vehicles / 3.7m company-liable 4m vehicles / 1.5m company-liablephones / 60% TEV smartphones / 26% TEV smartphones / 0% TEV 9m admit to texting, emailing, or browsing while driving 18,000,000 Employees driving company vehicles
  12. 12. THE SOLUTIONS Active Controls on Smartphones Passive Controls on Any Phone $2.50 per phone / per month $2.50 per phone / per month Actively promote safe and legal Passively measure employee use of phones while driving. use of phones while driving.  Phone-dependent  Phone-agnostic  Active Behavior Management  Passive Behavior Management  Works with/without Telematics  Requires Telematics and TEMs data  Ideal for Local / Sedan Fleets  Ideal for Local Service / Trucking Fleets
  13. 13. For more information on preventing distracted driving, please visit http://zoomsafer.com