The commercial auto market has sung the same old song for too long. Claims continue growing in frequency and severity.
Despite this, the road ahead offers glimmers of hope for fleets as well as the carriers and brokers that insure them. Dashcams and other in-cab technologies are giving companies the tools they need to assess driver behavior. AI, meanwhile, is helping carriers resolve claims faster and write risks with greater accuracy.
Data-driven defense
Plaintiffs' attorneys recognize most interstate, for-hire motor carriers are well-insured, making fleets a target for legal action. As outsized jury awards become more common, transportation companies and insurers are inclined to settle rather than risk a lengthy, costly court battle.
Newer API-connected systems, however, are flipping the script by linking Electronic Logging Devices (ELDs), dashcams and telemetric devices. These integrations give fleets and carriers objective, time-stamped evidence that will hold up in court.
When an accident happens, integrated systems provide a vehicle's exact GPS location, speed, brake application, RPMs and even the G-force of an impact, along with video footage of the crash and the driver's behavior. Armed with this information, carriers can make better decisions about whether to litigate or settle. Fleets, meanwhile, can also use on-board technology to continuously monitor driver behavior and design targeted training programs to reduce the risk of accidents.
AI-enabled efficiency
Even with stronger evidence in hand from on-board technology, carriers face another challenge: processing claims quickly and accurately.
The bottleneck often starts with underwriting. Traditionally, underwriters act like bouncers at the front door of a popular nightclub. They check your ID (assess a client's risk) and choose whether to allow entry (write the policy).
The problem is this: Even the best bouncer can only manage one door. Wildly talented underwriters or claims professionals can process only five to 10 accounts a day. They simply don't have time for ongoing risk management and claims handling. That's where AI can bridge the gap.
Across America Insurance Solutions created an AI-enabled ecosystem to support underwriting workflows and decision-making. The platform helps underwriters process and analyze information more efficiently, improving speed and consistency while allowing teams to focus on higher-level risk evaluation and strategy. On the claims side, All American Claims Services (AACS) uses AI-supported tools to help process estimates, photos, demand packages and storage bills. The system can also generate counteroffers based on the facts of a case and outline what will be paid and why based on supporting data. Claims professionals remain involved throughout the process and are ultimately responsible for judgment, oversight and strategy.
Next steps for fleets
Technology is a powerful tool for mitigating commercial auto risks, but it's not an all-in-one solution. Transportation company leaders should also take these other important steps to protect their fleets.
1. Attract and retain the best drivers. Hire only qualified drivers, and teach them that success is about safety, not about delivering a load in the shortest amount of time. Conduct routine and robust driver training focused on preventing the most common causes of accidents, such as distracted driving and speeding.
2. Choose an insurance partner wisely. Ask colleagues and friends for recommendations. Assess potential insurers not by price, but by the strength of their program and the value they deliver. Inquire about an insurer's loss ratio and ask how they will handle a claim.
3. Work with your insurer as a team. Keep insurers updated about scheduled and unscheduled vehicles and drivers to ensure full coverage and cooperate with adjusters when accidents happen so claims can be settled promptly.
Fleets and carriers that continue to invest in people and technology can bring stability back to the market.
