Poor underwriting results tighten the trucking market | Rig Hauler

Poor underwriting results tighten the trucking market

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Poor underwriting results tighten the trucking market Photo Credit: sharkman

Trucking is the backbone of the nation's economy. Annually, 70.6 of all domestic freight is moved by trucks and this generates $676 billion of the total transportation revenue. Despite playing such a strong role, many trucking firms are not as profitable as one would expect and most of them struggle to stay in business. One of the reasons for this imbalance is due to the high costs of labor, equipment, fuel, and other factors.
When it comes to insurance, trucking firms have to face increasing premiums. This can be attributed to the wide range of vehicles in the industry and owing to the fact that it is a high-risk industry. Often, different groups in the trucking industry deal with different insurance rates. For instance, a small fleet consisting of around ten trucks and a mid-size fleet consisting of 10-100 trucks will be managed by two different insurance companies. Most of the small fleets and new businesses in the industry have to deal with competitive insurance rates and this makes it harder for them to survive. At present, the truck market seems to be tightening due to the lack of underwriting results.
Experts hope that the new electronic logging device (ELD) mandate will be effective in regulating Hours of Service (HoS) rules and will help to secure the insurance market. Complying with the existing regulations will help to improve truckers' risk profiles thereby increasing their options when looking for coverage.

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