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