Claims continue to rise
Perhaps, no one spends more time on the roads, and drives more miles, in the United States than a truck driver. Unfortunately, low unemployment is forcing transportation companies to hire less qualified drivers, who in turn are transporting goods over an aging infrastructure, which is also in need of a massive overhaul with an infrastructure investment deficit estimated to reach USD 3,36 trillion by 2040.
Since 2010, trucks have been involved in 59 percent more accidents per mile, according to data from the American Trucking Association. Moreover, deaths in trucking accidents have risen a third since 2009. Reasons include truck driver shortage, distracted or impaired drivers and aging infrastructure.
Anders Lindström, Senior Underwriter at If Insurance explains that, “against this backdrop, rates are steadily increasing as claims continue to rise in both frequency and severity. In fact, rate increases on primary auto liability have been a reality for 35 quarters in a row with increased spill over to excess/umbrella.”
Further to this, states are adopting other changes that build upon the current negative development; increases in speed limits. “An increase in the speed limit by 5 MPH provides has statistically caused an 8% increase in interstate fatalities.
Thankfully, according to the National Highway Traffic Safety Administration and CTIA, data usage nearly doubled from 2017 to 2018 with fatalities actually decreasing by 2,5%, which means the correlation between mobile data usage and vehicle fatalities has been broken.”