Commercial Auto Trends to Watch in 2019
Each year, a variety of market forces have a direct impact on insurance prices for commercial fleets. To gain a better understanding of what’s going on in the industry and how certain factors will affect your insurance rates, it’s important to examine some of the biggest trends:
Because underwriters will be looking closely at safety and compliance standards, thorough risk mitigation practices will be key for businesses looking to lower their rates.
Jury rewards — which often exceed $10 million or more — will continue to drive transportation insurance losses.
Organizations with unfavorable loss ratios and CSA alerts should expect to see significant rate increases — some as high as 15 percent. As a result, hiring and retaining quality drivers has never been more important.
Adding to the market pressure, the growing U.S. economy has put more drivers on the road than ever before, and, as a result, auto liability claims have steadily increased in both frequency and severity. What’s more, the rising cost of medical care has led to significantly higher claims, and increased premiums aren’t enough for insurers to overcome their loss costs.
To help manage your risks and keep your rates in check, regularly train commercial drivers on compliance and safety concerns. Strong risk mitigation practices will be key for organizations looking to reduce their rates. In addition, it’s important to work with risk specialists and your insurance broker to assess your exposures. For more information or for more resources on training and risk mitigation best practices, contact us today!