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U.S. Trucking Continues to Be Burdened by Rising Costs – Experts

Tell us about yourself and your role Traveler/Northland Transportation?

I have been in the insurance industry for over 20 years and joined Travelers in early 2022 to lead the Northland Insurance business. My insurance background is in strategy, business development and finance and has also led his P&L for several commercial insurances. Also, having spent another 10 years in the computer software industry early in my career, automation and data analysis are my way of thinking.

As President of Northland, the industry’s largest wholesale transportation insurer, I work closely with our talented and experienced team to provide industry-leading trucking solutions for owner-operators and fleets through specialized transportation wholesaler partners. We provide insurance solutions. 2023 will mark his 75th anniversary. It is a testament to the organization’s dedication to trucking and its ability to continually evolve to serve its customers.

What is the current state of commercial auto insurance in the US?

Commercial vehicles are subject to the same problems as private vehicles. Rising truck repair and replacement costs were initially driven by COVID-related supply chain shortages and strong demand as fares hit record highs. Inflation now continues to drive up the cost of trucks, parts and labor.

Truck insurance also faces significant challenges created by large jury rulings, increasing in both amount and frequency. Unfortunately, this trend is limiting carrier choices in the market and leading to higher insurance premiums. Northland supports industry groups such as the American Trucking Associations, which advocate for regulatory reform to address this issue on behalf of the industry.

We also work with our customers to help mitigate some of these risks. For example, our dedicated claims experts not only understand trucking and are particularly familiar with heavy truck claims, but also the differences in jurisdictions and the ability to resolve or defend claims faster to get the right outcome. I also know about local lawyers who can help bring

We also provide risk management resources and information to help our customers operate their fleets safely on the road. This includes comprehensive training resources, onsite and virtual safety reviews with customers where transport safety experts provide comprehensive analysis and safety recommendations, and self-service tools for small fleets and owner-operators. It is included. Northland also helps shipping companies better evaluate new technologies and understand the cost-effectiveness of their investments.

These best practices help customers maintain drivers and reduce total operating costs over time.

How has the pandemic impacted the trucking sector?

Demand for trucking has peaked during COVID. First because home delivery became more popular, then because Supply handled his chain backlog. We have seen a record number of new start-up truck operators due to strong earnings potential as freight rates hit record highs. Usually one or two units.

Company drivers also benefited from wage increases and other benefits during that time, attracting a more diverse pool of drivers. According to the Women in Trucking Association’s 2022 Women in Trucking Index, female drivers make up nearly 14% of the industry today, up from her 10% in 2019.

Supply chain problems have delayed the delivery of many new trucks and prices have fallen from historic highs, but used truck inventories are still limited and aging. Fuel prices are rising and inflationary pressures are affecting pricing and labor force. Some smaller operators have closed due to rising costs, but many of their drivers have opted to join larger fleets.

How did insurance help mitigate this?

Insurance protects truck owners by providing coverage in the event of an accident or vehicle damage. So you can cover those expensive repair parts and labor costs and get your truck back on the road quickly. Or, if you prefer, we can help manage the rising cost of replacement trucks as long as your insurance values ​​are kept up to date. We also offer additional benefits such as roadside assistance and tow truck reimbursement to help owners cover unexpected costs due to vehicle breakdowns.

What new technologies are trucking companies using to control insurance costs?

Automated driver assistance systems (ADAS), similar to the automatic braking and lane assistance features you may experience in private vehicles, are helping trucking companies improve overall safety.

Data and analytics provided by telematics can be used to provide customized safety training and driver coaching. For example, if a vehicle collides, the telematics system can help the fleet and his manager determine the speed before the collision, whether the brakes were applied, and whether the driver took evasive maneuvers to avoid other vehicles or objects. help. This data not only identifies risky behaviors such as distracted driving and opportunities for improvement, but also helps trucking companies recognize and reward safe driving, potentially reducing preventable accidents. It also helps employees make better decisions about how they are coached.

Additionally, insurers can use telematics and camera data to more effectively defend or resolve accident claims. This significantly reduces legal costs and reduces the likelihood of large lawsuits.

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