Insurance & Risk Management

Strategic cargo theft leaves drivers, brokers liable for massive losses

Cargo theft by fraud is a growing freight industry issue and has resulted in a massive increase in cargo loss claims in recent years.

Craig Leinauer, Director of Inland Marine claims at Travelers Insurance, says that strategic theft is an alarming new trend.

While straight theft (the physical taking of the truck and trailer or cargo from where it’s parked) remains the number one method for cargo theft, it’s strategic theft (the use of trickery or deception) that has seen the biggest increases...

https://www.freightwaves.com/news/strategic-cargo-theft-leaves-drivers-brokers-liable-for-massive-losses

Telematics on the rise in trucking insurance underwriting

Trucking insurance premiums have increased roughly 5% year over year across the board for the past few years. Despite carriers’ attempts to reduce premiums, rates are still increasing, mostly due to the fact that trucking insurance market has not been profitable for 10 of the past 11 years.

Some of the main factors causing insurance companies to lose money are the rise in cargo theft and nuclear verdicts, which have pushed insurers to increase premiums, making coverage costs a larger burden for...

https://www.freightwaves.com/news/telematics-on-the-rise-in-trucking-insurance-underwriting

Insurance based on reported miles per month offers flexibility to carriers

Insurance premiums are one of the top five costs for motor carriers, and carriers’ premiums traditionally are the same every month regardless of how many miles they drive. But that doesn’t have to be the case.

Reporting-style insurance is just that: insurance based on what is reported. Premiums are calculated based on actual usage metrics (e.g., mileage or revenue) rather than estimated or static numbers. This ensures that carriers only pay for the coverage they need, which can be cost-effective...

https://www.freightwaves.com/news/insurance-based-on-reported-miles-per-month-offers-flexibility-to-carriers

There’s no substitute for the right cross-border insurance

In 2023, the U.S.’s top trading partner was Mexico. That trend is continuing well into 2024, with the increased volume resulting in growing pains that have been thrust front and center on both sides of the border.

Some of the common challenges with cross-border freight are visibility, track and trace operations, cargo theft, safety, insurance coverage, and wait times at the border.

According to BSI Consulting, Mexico is now the highest-risk country in the world for cargo truck hijacking. Data...

https://www.freightwaves.com/news/theres-no-substitute-for-the-right-cross-border-insurance

The end of the freight recession and impacts for 2025

On this episode on WHAT THE TRUCK?!?, Dooner sits down with Thom Albrecht, Chief Revenue Officer at Reliance Partners, to break down the possible end of the freight recession and what the trucking market will look like in 2025. 

On a previous episode, Albrecht predicted a March 2025 end of the freight recession and a turning point in the market. Gone would be the days of carriers barely running at a profit and just trying to get by.

In a follow-up interview with Dooner after some new data came...

https://www.freightwaves.com/news/the-end-of-the-freight-recession-and-impacts-for-2025

What is cargo insurance and why does it matter?

Recent trucking market conditions have made it harder for carriers to turn profits as carrier costs continue to rise, but rates are not following the same trend. Some carriers have had to take freight at a loss to keep trucks running.

When it comes to major expenses for carriers, the top four are fuel costs, truck/trailer lease payments, repair and maintenance, and insurance premiums. According to an American Transportation Research Institute survey that looked at 2023 costs compared to 2022...

https://www.freightwaves.com/news/what-is-cargo-insurance-and-why-does-it-matter

What impacts insurance rates?

On this episode on WHAT THE TRUCK?!? Dooner sits down with Ashley Hammonds, executive vice president and general manager at Reliance Partners to break down some of the current trends in the industry and its impact on insurance rates. 

Hurricane season has almost come to a close. The official end is Nov. 30, however most of the activity for hurricane season happens in September and October. There is little expectation for another hurricane to make landfall in the U.S. for the rest of the year....

https://www.freightwaves.com/news/what-impacts-insurance-rates

Winter weather safety measures to take now

As the days grow shorter and temperatures drop, the challenges faced by truckers on the road increase exponentially. Ensuring that drivers are fully prepared for winter conditions is paramount, and starting in the fall is a good first step.

According to the Federal Highway Administration, “Over 70 percent of the nation’s roads are located in snowy regions, which receive more than five inches of average snowfall annually. Nearly 70% of the U.S. population lives in these snowy regions. Each year,...

https://www.freightwaves.com/news/winter-weather-safety-measures-to-take-now

Breaking down new CDL regulations from the Drug & Alcohol Clearinghouse

The Federal Motor Carrier Safety Administration proposed a rule back on April 28, 2020, titled “Controlled Substances and Alcohol Testing: State Driver’s Licensing Agency Non-Issuance/Downgrade of Commercial Driver’s License.”

Now approved, the rule is scheduled to take effect Nov. 18. It prohibits state driver licensing agencies from issuing, renewing, transferring or upgrading a CDL or commercial learner’s permit (CLP) for any driver banned from operating a commercial motor vehicle.

Essentially...

https://www.freightwaves.com/news/breaking-down-new-cdl-regulations-from-the-drug-alcohol-clearinghouse

Solving the freight industry’s underinsurance crisis

Freight insurance is a 300-year-old industry that has often been slow to evolve. This is particularly evident in today’s rapidly changing digital landscape, where proper protection has not kept pace with the technological and sociological changes of the 21st century supply chain.

With more than 60% of freight under- or uninsured, the underinsurance crisis is a symptom of the fact that standard insurance practices cannot adequately protect stakeholders in the demanding environment of modern...

https://www.freightwaves.com/news/solving-the-freight-industrys-underinsurance-crisis

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