Tag Archives: commercial auto insurance

Milliman launches AccuRate Fleet at InsureTech Connect 2020, introducing new telematics-based risk score for commercial auto insurers, MGAs, and start-ups

Milliman today announced a new innovation in the insurtech space: AccuRate Fleet, a telematics-based risk score created with Azuga, Inc. to help improve commercial auto insurer profitability.

Milliman teamed up with Azuga, a leading provider of connected vehicle and fleet technology, to study how fleet driving behavior coupled with actual accident data can lead to predictive models for commercial auto insurers. Using 1.5 billion miles of Azuga commercial auto driving data and 5,700 accident reports, Milliman modeled the indicators of crash frequency and created a risk index to help insurers, managing general agents (MGAs), and start-ups in the commercial auto space price risk better.

“Commercial auto insurers have faced years of worsening combined ratios, and with this product we strongly feel that we can guide insurers to assess and price risk more accurately,” said Peggy Brinkmann, a principal at Milliman and codeveloper of AccuRate Fleet. “There’s an opportunity here for those in the commercial auto space to use existing and widely accepted technology and optimize their risk pools quickly.”

“Commercial auto has become an increasingly challenging market for building a profitable customer base and insurers can’t simply keep raising rates,” said Ananth Rani, cofounder and CEO of Azuga. “Azuga Fleet telematics has demonstrated significant reductions in accident frequency and severity at scale. The AccuRate Fleet score from Milliman further cements our leadership in delivering results both to the insured fleets and now the insurance carriers.”

To read more about AccuRate Fleet, click here.

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Autonomous trucking is coming – commercial insurers must prepare

The freight volume that trucks move around the United States has increased annually since the global financial crisis. Evolving business dynamics, however, including a shortage of available commercial truck drivers, has forced companies to search for new solutions to fill needed positions and increase capacity.

One viable solution is autonomous trucking technology, which can help streamline transportation logistics and meet demand. As the momentum behind autonomous trucking technology grows, insurance companies and reinsurers of self-insured fleets must begin formulating approaches to commercial autonomous vehicle (AV) technology.

In this article, Milliman actuary Andrew Groth explores the steps insurers should use to investigate the feasibility of offering new products for a developing autonomous trucking industry. He also examines the impact of autonomous trucking on their current books of business.

COVID-19 pandemic may reroute commercial auto trends for insurers

There is a trickle-down effect of the COVID-19 pandemic that permeates almost all aspects of life. In March, the Federal Motor Carrier Safety Administration issued an emergency declaration to suspend long-haul trucking hours of service regulations that have been in place since the 1930s. The goal of this unprecedented declaration: to allow cargo distribution networks to operate as efficiently as possible during these times of rapidly changing directives from federal and local governments.

While regulations for commercial trucking have been eased, other drivers have either been mandated to stay off the road or have fewer reasons to leave their homes. The net effect of that seesaw is crucial to the safety of truckers in the coming months and subsequently will be of interest to commercial auto insurers. In this article, Milliman’s Paul Anderson and Andrew Groth discuss COVID-19’s potential impact on the commercial auto insurance industry.