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.
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.
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.
To learn more about how insurtech is transforming claims management in the trucking industry, listen to this Critical Point episode featuring Nina and Christine Fleming.
In this episode of Critical Point, Milliman’s Christine Fleming and Nina Plail discuss how insurtech is transforming claims management in the trucking industry for both companies and consumers.
To listen to the entire podcast, click here.