July 24, 2020
U.S. Transportation Market Outlook
Over the past 10 years, the commercial auto industry has experienced its share of challenges that have impacted the transportation sector.
Nuclear verdicts, higher maintenance expenses, reduced freight demand and poor infrastructure, compounded by an aging workforce and driver shortage, have all led to the state of the insurance market today.
Inadequate pricing and reserving has led to premiums that have not kept up with losses for several years. In fact, insurance carriers have had underperforming combined ratios that have steadily increased since 2014.
To compensate, premium rates continue to climb, both year over year and on average, into double digits.
Operating on thin profit margins, transportation clients are continuing to look for ways to lessen losses and maintain profitability. And the beginning of 2020 was no different.
The jarring impact of COVID-19 has caused disruption across the transportation industry. Various segments have adapted and repurposed their business models, while others have been forced to halt operations.
There are still many unknowns regarding the longterm repercussions of COVID-19, as the economy, unemployment, stay-at-home orders and federal regulations will all play a role in the outlook ahead.
The transportation industry is always on the move, literally. As carriers and brokers try to forecast what will happen next, that continual movement may be the only predictable factor.
To Read More, please follow this link: U.S. Transportation Market Outlook
Source: Risk Placement Services