On this episode of “WHAT THE TRUCK?!?”, Mr. Dooner speaks with Ashley Hammons, Executive Vice President and General Manager, Reliance Partners, about current trends in the industry and their impact on insurance rates. I will explain in detail.
Hurricane season is almost coming to an end. Although the official end is November 30th, most of the hurricane season activity occurs in September and October. There is little chance of another hurricane making landfall in the United States this year. People continue to grapple with the devastation caused by Hurricane Helen and Hurricane Milton, which struck the Southeast just two weeks apart.
Hammons said, “While the impact of a hurricane may not result in a significant increase in overall rates, there may be a gradual increase.” These increases are primarily for locations within the path of a typical hurricane. It will have an impact on the companies in which it is located. Most traditional insurance policies cover any problems, damages, and spills that occur as a result of natural disasters such as hurricanes.
Most severe damage to trucks during hurricane season can be mitigated by moving equipment out of the storm and having extra trailers and trucks on hand to ensure cargo delivery. You can do anything to avoid the risk of a claim. The important question in any situation is what is the best course of action to prevent a claim.
Unfortunately, another trend taking over the industry is cargo theft, which can have an even bigger impact on insurance premiums. According to CargoNet, cargo theft increased 14% year over year. In the third quarter of this year alone, the entire industry lost about $39 million.
Most cargo theft insurance claims are difficult to investigate, and the rise in thefts has left some insurance companies scrambling to respond as traditional insurance claims are still waiting to be investigated.
“If 35 TV trailers were stolen on a Tuesday, that would definitely raise some flags and raise some alarms. At the same time, two or three people died on the same day,” Hammonds said. Therefore, we need to triage what is most important to investigate.”
The role of carriers in this regard may become more important than ever. Because more information and a willingness to assist with claims means faster claims processing, which results in faster payments, less money tied up in claims awaiting investigation, and ultimately lower premiums. You can.
Hammonds said: Don’t rely solely on your insurance company. Storage fees continue to increase the longer the claim lasts. Prices will skyrocket, but this can be prevented with phone calls and carrier intervention. ”
According to Trucking Dive, “Average increases in commercial auto insurance premiums slowed from an average increase of 8.8% in the third quarter to a 7.3% increase in the fourth quarter.” Looking specifically at the end of last year. and. There was also an increase of 29%. Insurance is one of the largest costs for motor carriers, so anything that can alleviate this increase is welcome.
Commenting on the future of insurance rates and the key aspects to watch for 2025, Hammonds said: “Two things to note are airline-wide safety and losses according to FMCSA.Loss is always the biggest factor.At the end of the day, insurance companies monitor losses and keep losses as low as possible. We have to strive to do that, which will lead the pack when it comes to interest rates.”
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