What's Happening?
The American Transportation Research Institute (ATRI) has launched a new research initiative aimed at addressing the rising costs of commercial auto insurance and exploring risk management strategies within
the trucking industry. This research will analyze insurance coverage trends from 2021 to 2024, focusing on the use of safety technology and alternative insurance arrangements, such as self-insurance or captives. ATRI is inviting motor carriers across the United States to participate in this study, ensuring that all submitted data remains confidential. Participants will receive a customized report that compares their total cost of risk with anonymized peer data. According to Josh Hankins, Senior Vice President of Safety and Security at J.B. Hunt, the trucking industry is currently facing a 'perfect insurance storm,' with rising premiums and reduced coverage increasing exposure to catastrophic litigation.
Why It's Important?
This research is significant as it addresses a critical financial challenge facing the trucking industry: the escalating cost of insurance. Rising insurance premiums can significantly impact the operational costs of trucking companies, potentially leading to reduced coverage and increased vulnerability to legal claims. By providing insights into effective risk management strategies, ATRI's research could help trucking companies better navigate these financial pressures. The findings may also influence policy decisions and encourage the adoption of safety technologies that could mitigate risks and lower insurance costs. Ultimately, this research could lead to more sustainable insurance practices within the industry, benefiting both trucking companies and their clients.
What's Next?
Motor carriers interested in participating in the research can complete the survey online or via PDF, with a submission deadline set for December 19. The results of this research could prompt further discussions among industry stakeholders, including insurance providers, policymakers, and trucking companies, about how to address the challenges of rising insurance costs. Depending on the findings, there may be calls for regulatory changes or incentives to adopt safety technologies that could reduce risk and insurance expenses. The trucking industry will likely be watching closely to see how these insights can be applied to improve financial stability and operational safety.
