Telematics puts a brake on rising trucking insurance premiums

Insurance and InsurTech Professionals Still Think Autonomous Freight This further increases the value of telematics technology.

HDVI co-founder and chief product officer Reid Spitz said:

said Reed Spitz, co-founder and chief product officer of HDVI, a telematics technology company. “regardless of [trucking] Whether semi-autonomous or fully autonomous, the need for insurance remains the same and will not go away. “

Offered by insurance companies that cover commercial trucking Telematics Discounts to help the insured deal with rising fees due to market conditions and liability. Improvements in telematics in this industry have the potential to improve insured returns by reducing risk and justifying greater discounts.

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Ian White, co-founder and CEO of Koffie Insurance

“Truck insurance is known as the insurance devil’s pitfall,” said Ian White, co-founder and CEO of Koffie Insurance, a digital MGA of trucking insurance. “Interest rates have been increasing by about 10% each year for the past decade. This basically means that brokers are not happy. Insured people are not happy, they are paying more each year and many of them are now losing money so insurance companies and insurers are largely heading for the hills. be running.”

Trucking insurance risk is based on factors such as the condition of the truck, the route of travel, and the type of goods being transported. Still, White said the most likely thing the insured will get is a drop in rate increase from 10% to 8% because of a clean safety record. His Koffie, which first launched indemnification in July 2021, primarily serves small and medium-sized transportation businesses, and also provides indemnification to businesses that were previously unable to receive indemnification. I’m here. Koffie currently operates in 15 states.

HDVI’s technology offers discounts of up to 12% for trucking vehicles that show a good safety record as evidenced by telematics data, according to Spitz.

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Donato Monaco, president of Northland Insurance.

telematics data Became a regional coin for determining trucking insurance premiums. More data will help determine premium pricing and streamline issuance policies, said Donato Monaco, president of Northland Insurance, a commercial auto and truck insurer owned by Travelers. increase.

“We now have new sources of third-party data that can help businesses and also provide opportunities for agencies to conduct research in a very targeted manner,” he said. “The automation that captures that data allows us to streamline the process. For many of our retail wholesale partners, it reduces the work associated with obtaining quotes and serving truckers in a more efficient manner. This is really beneficial for everyone, and we are also developing digital or self-service tools for our customers and agents.”

Carriers need to interpret all the data they get from telematics, explains Chris Hayes, Assistant Vice President, Workers Compensation and Transportation Risk Management at Travelers. “Driver monitoring is more difficult than most people expect,” he said. “Consultants spend most of their time working with insurers to understand that data and how to better use it. I would love to see it come true.”

Telematics coming soon prevention programAccording to Monaco, not only as a basis for rates and discounts. “The next generation will be able to provide driver feedback, adjust safety programs specific to those drivers, and actually change behavior and make our roads safer.

In addition to setting conditions and premiums on a semi-annual or annual basis, telematics enables continuous underwriting. cover whaleThe company is an AI insurtech that underwrites commercial vehicle insurance policies, according to co-founder and CEO Daniel Abrahamsen.

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Dan Abrahamsen, Co-Founder and CEO of Cover Whale, said:

Cover Whale’s event recorder records video when an event, such as an accident, is detected. It also monitors speeding and driving patterns. The company incorporates this data into its truck driver feedback. This includes ranking apps that rate driver safety compared to other apps. “Are you in the top 5%? Are you in the 50%? Are you in the bottom?” Abrahamsen said. “If you’re at the lowest level, how do you give hints that you might be able to improve?”

Telematics has also proven its worth as a defense. lawsuit As Abrahamsen and Monaco explained, judgments and settlements can certainly push up insurance premiums.

“There are events where the event recorder saves the driver,” says Abrahamsen. “In all the cases where we can show that a driver stopped, they did nothing at all and there are no cases where another driver crashed into them … and vice versa. As in, it becomes very clean for us to accept responsibility and do the right thing. It really helps set the story straight. It allows us to get claims paid out faster. And it can be a win-win.”

Northland Insurance has found that telematics and video camera recordings can also help defend against fraudulent claims, such as the circle of people who deliberately hit their trucks to claim damages ( “Operation Sideswipe” in New Orleans from 2015 to 2017). “Having a camera to disprove them is very helpful,” Monaco said.

According to Travelers Hayes, telematics programs can also be used to document the results of safety programs. “By having a policy and sticking to that policy, you can go to court and say, ‘We did our best. This is the best. This is how we stuck to it.'” He said. “It’s a good defense.”

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