As trucking companies are keenly aware, the trucking insurance industry has been experiencing a hard market for over a decade, characterized by rising premiums, reduced capacity, and stricter underwriting standards. However, 2025 brings some good news and opportunities—for some.

What’s Happening With Rates Right Now?

After years of a hard market that featured many carriers readjusting their underwriting strategies, we are beginning to see the positive impact of the Compliance, Safety, Accountability (CSA) program and the Electronic Logging Device (ELD) mandate. These systems provide unprecedented access to real-time and historical data, enabling carriers to differentiate between safety-conscious trucking companies and those with higher risk profiles.

As a result, the spectrum of rates in the trucking insurance market will likely continue to broaden. As the market becomes more data-driven, underwriters are analyzing risk profiles more thoroughly than ever, making the gap between optimal and suboptimal rates increasingly pronounced.

In other words, insurance carriers have more data than ever before to reward safety-conscious companies and penalize higher-risk operations.

🟢 Green Lights: What Underwriters Want to See

1. • Strong CSA Scores: Clean, consistent compliance records demonstrate your commitment to safety and regulatory standards. Companies with excellent CSA scores stand out to underwriters and are often rewarded with lower premiums.
   • Cameras & Telematics: Companies leveraging technology like dashcams and telematics grab an underwriter’s attention immediately. The benefits of cameras, especially in preventing and defending claims, cannot be overstated. Telematics systems that monitor driver behavior further enhance your safety profile.
   • Structured Safety Programs: Underwriters value trucking companies with clear, documented safety policies, regular training sessions, and consistent accountability for drivers. A no-exceptions enforcement policy shows a culture of safety and responsibility, which translates to reduced risk. Additionally, these programs are invaluable in the event you find yourself in litigation.

 

Exploring Program Structures for Your Operations

Customizing your insurance program structure is a strategic way to achieve cost efficiencies and ensure alignment with your business model. Here are some common program structures to consider:

• • Mileage-Based Programs: Ideal for operations with predictable routes and mileage. Premiums are calculated based on total miles driven, making this a great option for companies focused on reducing unnecessary travel.

• • Sales-Based Programs: Suitable for businesses where revenues fluctuate with hauling volumes. Premiums adjust based on annual sales figures, offering flexibility during slower periods.

• • Composite Rating Structures: This approach pools exposure across multiple factors such as mileage, number of trucks, and drivers. It simplifies the premium calculation process, especially for fleets with varying operational metrics.

• • Self-Insured Retention (SIR): A self-insured retention structure allows companies to assume a portion of their risk, offering potential cost savings and greater control over claims management. This is ideal for larger, financially stable fleets with strong risk management practices.

• • Captive Insurance Programs: Captives provide a customized risk-financing solution, enabling companies to pool their risks and gain more control over premiums and claims. They are a great fit for companies looking to stabilize costs, improve cash flow, and potentially share in underwriting profits. Captives also foster collaboration among like-minded companies to reduce overall risk and improve safety.

 

Final Thoughts

2025 presents an opportunity for trucking companies to improve their current insurance program by leveraging favorable market trends. This also creates an opportunity to review whether there are program structures that better align with your operations. By focusing on what underwriters want to see and exploring tailored program structures, you can secure optimized rates.

If you’re interested in my help, just drop me a line.