US: Trucking firms embracing technology to cut insurance costs

04.06.2017

US: Trucking firms embracing technology to cut insurance costs
Wall Street Journal (The) - United States, 04 Jun 2017, online:-
The commercial auto insurance sector in the US recorded pre-tax losses of USD 716mn (EUR 634.67mn) in 2016 as costs rose to almost USD 112 for every USD 100 premium they collected, according to Conning. Trucking companies have been hiring inexperienced drivers to fill vacancies post-recession and this caused more accidents that drove up the amount of claims. As a result, insurers have either exited the business or raise premiums by up to 30% per year. However, insurers are also pushing for these transportation companies to adopt sometimes-invasive technology that can help lower claims such as cameras in the cabs and a smartphone app that block use while driving.
US-based Estes Services installed Cellcontrol on phones of its 112 technicians as a way to avoid cancellation of its insurance coverage and to avoid future rate hikes. US-based Beitler Trucking had set up onboard cameras that will record a video seconds before and after a triggering event like slammed brakes. In exchange, its insurer, Zurich's North America unit, slashed its insurance bill. US-based AIG also ran a pilot program with a rental car company to assess driving skills of its customers by offering prizes for safe-driving techniques.
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