In the trucking industry, there has been greater reliance on shipping items across U.S. roadways, which has significantly increased demand and miles driven. As smaller companies grow to meet this demand, though, their claims departments have often struggled to maintain consistent incurred loss-per-mile-driven results. And the trucking industry has long been subject to escalating claims costs by claimants who see these companies as a “deep pocket.” These claim trends complicate profit and loss (P&L) projections, and some claims departments that in the past silently delivered adequate results have now become a black eye on the P&L. The good news is that there are options available to combat this deterioration of results.
As leadership teams struggle with managing this challenge, several insurtech opportunities offer promise. New advances in technology coupled with claims optimization approaches bring the promise of reduced incurred loss costs, streamlined efficiency, and increased profitability. Trucking companies that have experienced growth over the last few years face several challenges at once: optimizing claims departments, scaling for growth, and integrating technology enhancements to control losses.
As the industry evolves and trucking companies integrate new technology into their claims systems, savings can be realized on both the indemnity payment and expense payment side of the equation. In this article, Milliman consultant Nina Plail explores how the trucking industry is using new technology to stay ahead.