from Travelers and truckinfo.net
Q- How many truckers are in America?
A- 675,000 registered trucking accounts in the US according to Travelers. truckinfo.net reports almost half of that or 360,000 companies
Q- So how many trucks operate in the US?
A- Estimates are over 15 million trucks and just under 2 million of those are tractor trailers.
Q- How much is spent on Trucking Freight annually in the US?
A- $400 billion
Q- What is the average operating ratio ( profit) for trucking companies?
A- 95.2% or a profit of 4.8 cents on every dollar
That shipping companies paying truckers to haul freight just to be specific
Q- Total Amount of cargo theft in the US?
A- $30 billion
So that means that 7.5% of trucking freight payments are eaten by the shipper, the trucker, the insurance company, or the consignee. That $30 billion is passed on to shippers and truckers in higher premiums- and to the general public. A very big deal.
What would be ideal information from an underwriting context as to the values shipped so it could be understood what percentage of values is lost.
Friday, July 24, 2009
Thursday, July 23, 2009
Progressive?
Progressive Insurance Company is a very good marketing company and would like the public to think that the transportation insurance marketplace is their oyster.
Recently they did two things that created a new level of hubris.
First of all they have advertised that they are the largest writer of commercial truck policies than any other carrier. They mention policies, not operating units or radius ( they do no long haul) or classes.
Secondly, they have introduced an any auto endorsement. Here is the advertisement
" Imagine this scenario -- a customer has commercial auto insurance for his small business. Before it's time to renew his policy, he buys a new truck, forgets to notify his insurance agent about it so that the agent can update his policy. Then the customer causes an accident.
"A scenario like that could raise errors and omissions issues for independent insurance agents," said Mike Miller with Progressive's commercial auto insurance group. But, according to Miller, a new endorsement -- Any Auto Liability -- could limit the agent's exposure.
"An Any Auto Liability endorsement from Progressive can limit E&O exposure in those situations by filling the gap created when commercial auto insurance customers get new vehicles but don't update their policy until it's time to renew," Miller said"
All sounds good until you have a start up insured buy 1 unit, fail to add 10 units and show up at renewal with 11. Can you imagine the missed premium and the audit issues. It will be interesting to see
Recently they did two things that created a new level of hubris.
First of all they have advertised that they are the largest writer of commercial truck policies than any other carrier. They mention policies, not operating units or radius ( they do no long haul) or classes.
Secondly, they have introduced an any auto endorsement. Here is the advertisement
" Imagine this scenario -- a customer has commercial auto insurance for his small business. Before it's time to renew his policy, he buys a new truck, forgets to notify his insurance agent about it so that the agent can update his policy. Then the customer causes an accident.
"A scenario like that could raise errors and omissions issues for independent insurance agents," said Mike Miller with Progressive's commercial auto insurance group. But, according to Miller, a new endorsement -- Any Auto Liability -- could limit the agent's exposure.
"An Any Auto Liability endorsement from Progressive can limit E&O exposure in those situations by filling the gap created when commercial auto insurance customers get new vehicles but don't update their policy until it's time to renew," Miller said"
All sounds good until you have a start up insured buy 1 unit, fail to add 10 units and show up at renewal with 11. Can you imagine the missed premium and the audit issues. It will be interesting to see
Friday, July 17, 2009
Trucking Trends- Better Drivers and Better Equipment on the Road/ Less Severity
From Professional Safety
According to the Commercial Vehicle Saftey Alliance Roadcheck 2009, there were declines in the vehicle and driver Out of Service rates(OOS) versus last year. The numbers:
Drivers- 4.4% of drivers were OOS versus 5.3% in 2008
Equipment- 19.6% of vehicles were OOS versus 20.8% in 2008
While the differences are not huge they do show trucking is getting better and more compliant
At the same time the US DOT announced that traffic fatalities reached a record low. The fatality rate is 1.27 fatalities per 100 million vehicle miles traveled. This represents a 9% decline from the previous year
What does this mean respects trucking insurance today?
Most insurance capacity is geared for the better truckers. So as you can see trucking operations are getting better and better. So for the truckers who are able to endure in this economy, the trend is that their operation will be better
Also less severity means there is a better chance for underwriting profit so look for a continued softness and reduced pricing
According to the Commercial Vehicle Saftey Alliance Roadcheck 2009, there were declines in the vehicle and driver Out of Service rates(OOS) versus last year. The numbers:
Drivers- 4.4% of drivers were OOS versus 5.3% in 2008
Equipment- 19.6% of vehicles were OOS versus 20.8% in 2008
While the differences are not huge they do show trucking is getting better and more compliant
At the same time the US DOT announced that traffic fatalities reached a record low. The fatality rate is 1.27 fatalities per 100 million vehicle miles traveled. This represents a 9% decline from the previous year
What does this mean respects trucking insurance today?
Most insurance capacity is geared for the better truckers. So as you can see trucking operations are getting better and better. So for the truckers who are able to endure in this economy, the trend is that their operation will be better
Also less severity means there is a better chance for underwriting profit so look for a continued softness and reduced pricing
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