Usage Based Trucker Insurance
Usage-based Insurance (UBI) was popularized in the personal auto insurance market nearly a decade ago when a few large insurers offered customers discounts for installing GPS-type devices in their vehicles. In more recent years, large, self-insured commercial truck fleets have partnered with reinsurers to build pricing models partially based on the predictive power of telematics data. Unfortunately, small and mid-sized fleets continue to face the challenges of a hardening commercial truck insurance market and pricing models that have not changed dramatically in more than a decade. Given the large year-over-year increases in insurance pricing, something has to change to allow commercial truckers to remain profitable.
Seeing an opportunity, some startups in the commercial truck industry are working to harness the power of smart cameras and the powerful data they collect to build a new pricing platform. Smart cameras not only protect fleets from fraudulent claims, but they also detect many behaviours that lead to crashes. These include speeding, hard braking, following too closely, sudden lane changes, and more. The amount of these incidents are powerful predictors of crashes that lead to large claims. Furthermore, this data can be used to train drivers that consistently have issues, as well as reward the safest drivers. Many commercial trucking insurance professionals believe that telematics-based insurance pricing is going to be the wave of the future.
With skyrocketing commercial truck pricing, the team at The Daniel & Henry Company is always seeking cost-cutting measures for our clients. Stay tuned for exciting news regarding telematics-based insurance for fleets sized 10 – 50 units. To learn more, call us today at 1-877-406-5915 or email us at ClaytonD@danielandhenry.com