Trucking Insurance Faces Crossroads With AI and Litigation
Rising Nuclear Verdicts and Emerging Tech Reshape Policies
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For several years, Transport Topics has provided insight from industry leaders about the pain points of trucking insurance. During that time, with fleets facing rising litigation from nuclear verdicts and industry disruption from new technology like artificial intelligence, the industry now stands at a crossroads.
So, in this year’s special report, we want to look at how these factors are colliding and what it means for carriers, insurers and the courts.
It’s not hyperbole to say that verdicts reaching into the tens of millions against carriers while regulators and insurers are trying to make sense of AI’s role are currently creating a seismic shift in the way that insurance policies are developed and nurtured.
Even with the news about the Texas Supreme Court’s reversal of a $100 million verdict against Werner Enterprises earlier this year, the overall legal environment still tilts against trucking. The toll of the nuclear verdict has driven premium rates higher while insurers are pulling back coverage limits, forcing fleets into higher deductibles. Even worse, smaller operators are feeling the most pain. As a result, safety investments such as ADAS and cameras along with better hiring practices serve as green flags for insurers to even consider coverage.
In addition, AI and telematics data are transforming risk assessment and claims, even if the pace is slowed by regulation and insurer caution. For instance, some newer firms are pushing an “AI-first” approach, using real-time fleet data such as ELDs and dashcams to price policies based on actual risk, while traditional players are using it more conservatively as a support tool to help their teams work more efficiently.
RELATED:Trucking Industry Still Facing Soaring Insurance Costs
These challenges may be sobering, but they also present opportunities. With the hardening of insurance policy writing, there is plenty of innovation to be discovered. However, the big question will be how fleets will successfully adapt to the new future. We hope this special report offers a roadmap for where insurance in trucking is headed next.
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