Truckload Driver Turnover Data and Insurance Ramifications

Data from the American Trucking Associations shows the following information relative to driver turnover in the truckload sector:

*75% of drivers left their trucking company of employment for fleets with revenues of $30 million or more ( up from 39% last year)

*50% of drivers left their trucking company of employment for fleets with revenues of less than $30 million ( up from 35% last year)

The driver market is tightening and industry experts feel it will get worse.

Turnover is being triggered by companies removing unwanted drivers and drivers who want to find a new fleet.

Smaller fleets increased their ranks by 15.2% but lost 12.7% of their drivers for a net gain of 2.5%. This is better than large fleets due to shorter lengths of haul.

What is the biggest deal is that 50% of new hires leave their employer within 180 days of hiring so it is the new hires that are assisting the churn.

What does this mean relative to insurance?

1) In the underwriting process, insurance companies look at date of hire and assign debits/ credits and pass/ fail relative to driver turnover.

2) CSA has more drivers being scrutinized by trucking companies, insurance companies, brokers, and shippers. There is a " fix it" mentality that an insurance company wants to see if there are alerts in the 4 BASICs driver scores

3) Look for insurance companies to debit pricing based on poor driver retention. That is higher driver turnover = higher insurance premiums.