The COVID-19 outbreak has rolled out transport insurance markets as the truck continues to drive prices higher in the sector, according to a report released on Tuesday by Risk Placement Services.
"COVID-19's damages have disrupted the worldwide transportation industry. Various segments have adapted and repurposed their business models, while others have been forced to halt operations," said the report from the managing agent / head of insurance and the wholesale insurance broker.
Years of underperformance combined conditions have forced insurance companies to pass on double-digit increases in premium rates, with rates rising by 10% to 15% compared to the year since 201
"As the commercial car insurance industry continues to struggle with a myriad of challenges that have affected premium rates over the past decade, plus the effects of the current pandemic, the current warming of the market is expected to continue in the second half of 2020," RPS said.
As part of the response to the impact of coronavirus, insurance companies have reduced premiums, deleted units and waived a monthly minimum reporting for mileage, receipts or units, it said.
This comes before a commercial autosecond tor that has been struggling for years to achieve profitability, it said.
"Insufficient pricing and provisions have led to premiums that have not kept up with losses for several years," the report said, adding that "insurance companies have had underperformance combined conditions that have increased steadily since 2014."
for which data is provided, 2018, showed a combined ratio of 112.9%, up from 111.0% in 2017 and 110.4% in 2016, the report said.
Trucking continues to see challenges against this background.
" Trucking is a difficult business for insurance companies, "said Mike Mitchell, area president of RPS's transportation practice, Southeast region, in the report." Truckers are on the move every day, so exposure is always there. "
Even companies that have not experienced losses are affected by interest rate hikes, the report adds.
Truck markets significantly affect the overall commercial sector, the report said.
"While the commercial car market is affected by a number of different classes "of business, the truck industry is contributing to the continuous increase in premiums and affecting prices more than anyone else," said RPS.  The truck faces a number of challenges in addition to the constant exposure of being on the road every day, including an aging workforce and driver shortages, the report said.
More insurance and risk management news about the coronavirus crisis  here .