At SambaSafety, we believe in the power of data-driven insights to foster positive change. Our 2024 Driver Risk Report: Key Trends Shaping Automotive Mobility marks a significant step in our mission to enhance driver safety and performance. The report leverages extensive first-party data from motor vehicle records (MVRs), court records, telematics and Compliance, Safety, Accountability (CSA) insights, as well as trusted third-party sources, to provide a comprehensive view of automotive mobility trends shaping the industry.
The narratives that unfold from our findings underscore the need for collaboration among insurers, employers and government bodies. By working together to understand these trends and implement effective strategies, we can better navigate the complexities of profitability, hiring, retention and regulatory compliance in 2024 and beyond.
Auto insurance has been a significant driver of inflation, with costs rising 45.8% since December 2021. Four primary factors contribute to this trend:
Auto insurance claims have increased by 14% since 2020, with a 36% jump in severity. To manage the higher costs, insurers are raising premiums and tightening underwriting standards.
Nuclear verdicts, or jury awards over $10 million, are becoming more common, prompting discussions about increasing minimum liability requirements for interstate motor carriers from $750,000 to as much as $5 million.
Advanced safety technologies in vehicles are driving up purchase and repair costs, with average repairable claims expected to reach $5,500 in 2024.
Increased smartphone use has led to a rise in distracted driving, with 3,308 fatalities in 2022 and higher claim probabilities for certain behaviors.
To combat these challenges, our report highlights the importance of collaboration between insurers, brokers and fleets to improve stability, safety and profitability in a challenging market.
Learn more by exploring our blog:
“4 Auto Insurance Trends Uncovered in Our 2024 Driver Risk Report”
Companies face critical issues in driver recruitment and retention, prompting a reevaluation of strategies. Key trends highlighted in the report include:
Labor shortages are a major concern, with 65% of human resources (HR) professionals identifying it as a top challenge. Many companies are turning to contractors and gig workers, introducing new risks that must be managed within risk and safety programs.
With nearly four million baby boomers retiring annually and low unemployment rates, competition for drivers is intense. Organizations are focusing on upskilling and reskilling younger generations to fill knowledge gaps, particularly in transportation, where many workers are over 45.
A resolution urging the U.S. Congress to lift restrictions for holders of Commercial Driver's Licenses (CDLs) who are 18 to 20 years old also received Senate approval in June 2024. The measure seeks to allow these drivers to transport goods across state lines, expanding the pool of qualified drivers.
Due to the scarcity of qualified candidates, many companies are prioritizing developing and retaining their current workforce. This increases the need for sustainable risk management and targeted driver training strategies.
With all of this in mind, the need for training younger generations entering the workforce is more critical than ever. With so many baby boomers retiring and a frightening increase in distracted driving, these younger drivers must be confident, well-prepared and knowledgeable behind the wheel.
Our study analyzed over 40 million MVRs used for employment and insurance purposes from 2020 to 2023. The report reveals how driving risks vary with age, offering a foundation for developing more targeted training programs based on violations and behaviors related to each range.
To explore these findings and better understand the importance of targeted training programs, read our blog:
“The State of Driver Recruitment and Retention in 2024”
Understanding key trends influencing driver risk and compliance is crucial for organizations facing a stricter regulatory environment in 2024. Related findings highlighted in the report include:
The Federal Motor Carrier Safety Administration (FMCSA) proposed revisions to the Safety Measurement System (SMS) that aim to better identify carriers needing urgent oversight and help motor carriers foster safer driving habits.
As we mentioned above, a resolution to reduce the minimum age for interstate CMV drivers from 21 to 18 was recently approved by the Senate. While this aims to address driver shortages, we are closely monitoring the resulting safety and compliance implications.
Cities like Los Angeles, Philadelphia and Denver are focusing law enforcement on serious safety violations (e.g., running red lights, reckless driving) rather than minor infractions (e.g., expired tags) to allocate resources more effectively and enhance public safety.
Our analysis of data from over 1,000 monitored CMV accounts from 2022 to 2023 revealed that vehicle maintenance violations accounted for 59.1% of all violations. Top violations included inoperable required lamps, tire issues, brake adjustments and registration/license plate violations. Other top violations fell into the Unsafe Driving category, accounting for 12.77%.
These insights highlight the need for more proactive compliance and risk management to ensure fleets and their drivers adhere to evolving FMCSA safety regulations.
To dive deeper into these findings, check out our blog:
“Navigating FMCSA Safety Regulations and Violation Trends in 2024”
By exploring automotive mobility trends, we aim to provide auto insurers and employers with the information they need to successfully navigate the complexities of driver risk, inflation and compliance in 2024 and beyond.
Ready to learn more? Watch our on-demand webinar to dive deeper into these trends and discover actionable strategies your team can implement to combat them!