Insurance premiums may calm in 2023, providing carriers some relief
After years of insurance premium hikes, carriers may see some light at the end of the tunnel in 2023. However, insurance companies are continuing to face economic issues, the same as most other companies… it’s unclear whether increases can be avoided forever. President of Hub International’s transportation services division, Michael Birge, has noted that for five years, commercial auto insurance has risen in the double digits, consecutively.
Some claim that better technology and artificial intelligence integration can be thanked for the slowing insurance premium hikes. Advanced technologies such as telematics, sensors, and predictive analytics can help trucking carriers improve safety on the roads, reducing the number of accidents and claims, and ultimately lowering insurance premiums. AI and machine learning can help identify and prevent fraudulent claims, reducing the number of losses for insurance companies and ultimately lowering premiums for trucking carriers. Advanced technologies can help insurance companies more accurately assess the risk associated with trucking carriers, allowing them to offer more tailored coverage. Additionally, AI-powered claims systems can help speed up the claims process, reducing the cost of claims administration.
A proposed bill, dubbed the Fair Compensation for Truck Crash Victims Act, could significantly impact the trucking industry by raising the minimum liability insurance from $750,000 to $5 million—a hefty 566% increase.