The commercial insurance landscape is constantly evolving, shaped by technological advancements, regulatory shifts and global events. As we ramp up into 2024, we want to remind insurers of a few key shifts that occurred in the industry in 2023 that will continue to impact business. In this blog post, we will explore three major auto insurance trends that commercial insurers should keep top of mind going into 2024 and highlight a few essential resources from SambaSafety to help you navigate these changes.
READ NOW | What’s New at SambaSafety: Insurance Enhancements Made in 2023
Get Familiar with These Three Auto Insurance Trends
1. Telematics Adoption Growing Among Commercial Insurers
SambaSafety conducted an industry-wide survey in collaboration with The National Alliance for Insurance Education and Research and reported on the results in the fall. The findings of the survey provide a helpful snapshot of where the commercial insurance industry stands regarding its engagement with new data insights and telematics adoption. The primary findings highlight the growth in adoption of telematics data and insights among commercial insurers with one third of survey respondents indicating that they were planning to offer UBI products within the next one to two years. It will be important for carriers to establish a point of view on telematics and begin building out plans for how this new data can help their businesses. Be sure to read the report for deeper insight into where the industry stands with telematics and newer data sources.
2. Nuclear Verdicts Are On The Rise
We have seen countless nuclear verdict outcomes for commercial carriers in the past couple of years. The frequency and settlement amounts are increasing at a tremendous pace, and it’s important to prepare and protect the industry from this growing threat. With tight margins and a hardening market for commercial insurance, too many nuclear verdicts in the future could bring the industry to a halt. In our white paper on the topic, we share some actions that insurers can take to guard themselves against the growing phenomenon.
3. Proposed FMCSA Safety Measurement System (SMS) Changes
The FMCSA proposed a number of significant, unexpected changes earlier in the year that will begin to take effect in 2024 (official date has not been published). Among these proposed changes are major shifts in how the SMS categories are identified – changing BASICS to simply “safety categories”. We recently hosted an on-demand webinar where industry leaders discuss the changes in detail, providing guidance to help your regulated commercial clients prepare before these changes go into effect. Click here to watch the replay.
A Year of Growth for SambaSafety
The SambaSafety team prides itself on staying at the cutting edge of the commercial insurance industry and our enhancements over 2023 reflect this commitment. In the past year, we have invested deeply to advance our telematics, driver risk assessment, training and monitoring capabilities. We also expanded our integrations footprint to cover over half of connected commercial vehicles on the road, making it easier than ever for our partners to get their UBI programs implemented across their book of business.
Stay On Top of This Year’s Auto Insurance Trends
The commercial insurance industry underwent transformative changes in 2023, driven by technological advancements and the shifts will continue to accelerate in 2024. To navigate this dynamic landscape successfully, insurers must embrace insurance technology, like telematics and alternative data. By staying ahead of these trends, commercial insurers can not only mitigate risks but also position themselves as leaders in an industry that continues to evolve. SambaSafety’s solutions could be the answer you’re looking for — click the link below to see the major changes we’re making to better support insurers.
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