Harness technology to improve operations and curb inflation.
Learn about transportation market trends
and insurance rate changes for 2023.
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Transportation
HUB 2023 Outlook
What's covered...
Setting the Scene
What to Expect in 2023
Make a Plan
About HUB
Profitability
Vitality
Resiliency
Technology
Take care of your drivers
Assume more risk
Meet the Experts
HUB Transportation
Setting the Scene
Accelerating costs, driver shortages will test transportation industry.
Rising prices are pressuring trucking fleets, but investing in driver recruitment and retention, technology and cyber defense can reduce risks and position carriers to maintain profitability and resilience.
What to Expect in 2023
Low unemployment and a significant number of drivers nearing retirement will continue the driver shortage. Rising prices for gas, vehicles and replacement parts will add to the challenges facing fleets. However, technological advances will help improve logistics, recruitment and retention and keep drivers safer on the road.
Make a Plan
Download our 2023 Transportation Outlook and Insurance Market Rate Report to see what to expect in the coming year.
Download Report
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Be Prepared
Assume more risk.
Fleet carriers competing for qualified drivers can set themselves apart from competitors by supporting the health, safety and wellbeing of their workers. HUB Drive Contractor Benefits connects independently contracted drivers with a benefits program designed exclusively for them.
Emphasize safety.
Be transparent with your broker.
Take care of your drivers.
Take care of your drivers.
Taking a higher deductible is just one way to reduce premiums and improve experience rating by reducing claims frequency. Ask your HUB broker about other options such as captive solutions, self-insurance and risk retention groups.
Assume more risk.
Make safety a tenet of the organization. Train and onboard drivers to understand expectations and embrace telematics as a re-training tool. Take advantage of technology platforms to glean how your fleet’s driving behavior compares with peers and help guide continuing driver education.
Emphasize safety.
Emphasize safety.
Be transparent with your broker.
Take care of your drivers.
Assume more risk.
Be transparent with your broker.
Let your broker know what changes you’ve made to the business, so there are no surprises at renewal time. Share telematics with your broker, who can leverage your score to lower insurance costs. Review exposures and insurance needs at least 90 days prior to policy renewal, so your broker can identify the best options.
Take care of your drivers.
Assume more risk.
Be transparent with your broker.
Emphasize safety.
Meet the Experts
Practice Leader
Transportation Practice
Michael Birge
Linkedin Profile
Chief Sales Officer
David Berno
Transportation Practice
Linkedin Profile
Chief Strategy Officer
Lisa Paul
Transportation Practice
Linkedin Profile
Chief Marketing Officer
Tim Horgan
Transportation Practice
Linkedin Profile
Transportation
When you partner with us, you’re at the center of a vast network of experts who will help you reach your goals. For more information on how to manage your insurance costs, reduce your risk and take care of your employees, talk to a HUB transportation insurance specialist.
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insurance rates or even slight rate reductions in 2023, helping to offset rising operations costs and improve profitability. But transportation firms with below-average driving scores and high incident frequency will face pricing challenges, with rates rising at least 5% to 10% and increased deductibles.
Rising costs will
put the brakes
on profits.
Nearly every line item on a fleet carrier’s budget increased in 2022, straining profitability. Vehicle insurance increased 7.4%. The price of a new vehicle escalated 10.4%, and used vehicle prices surged 6.6%, making it extremely difficult to upgrade a fleet.
Gas prices more than doubled between June 2021 and June 2022. Though carriers felt a reprieve in the fall of 2022, the ongoing war between Russia and Ukraine makes it unlikely that energy prices will fall back to 2021 levels soon.
In addition, supply chain delays and the high cost of replacement parts present additional challenges for fleets, delaying equipment repair.
However, fleets with best-in-class risk management programs and excellent driving records backed up by data have reason for optimism: they are likely to secure favorable
2. U.S. Bureau of Labor Statistics, “Consumer Price Index unchanged over the month, up 8.5 percent over the year, in July 2022,” August 15, 2022.
Technology
Resiliency
Vitality
Profitability
Technology
Resiliency
Vitality
Profitability
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only ensure drivers have access to a minimum level of coverage, but also can include personalized benefits that deliver quality employee experiences (QEX) that increase driver retention, such as health savings plans, retirement options and wellness programs.
With nearly 44% of long-haul drivers reporting struggles with depression and more than a quarter abusing drugs, a benefits program that includes health and wellness resources can support drivers and mitigate the big-ticket risks and lawsuits associated with driver drug use.
Investing in
drivers will spur recruitment and retention.
The industry-wide driver shortage will remain a significant issue in 2023. Currently, the transportation industry is short 80,000 drivers — a figure projected to rise to 160,000 by 2030.
Some companies are substantially raising pay and offering signing bonuses. Walmart announced that it would pay private fleet truckers up to $110,000 their first year. Others are competing by offering improved education and training, innovative health and wellness benefits, and incentive programs. Carriers are also emphasizing a strong company culture to help drivers create work-life balance and feel connected to the organization.
For the many fleets that rely on independent contractors, innovative technology platforms can help connect drivers and their families to self-funded health insurance. Such options not
5. American Trucking Associations, “Industry Short 80,000 Drivers Today, May Be Short 160,000 by 2030,” October 25, 2021.
Technology
Resiliency
Vitality
Profitability
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information, claims adjusters can investigate incidents quickly, helping protect drivers when they are not at fault, prevent claims from going to litigation and speed up adjudication and settlement.
Technology can also enhance a fleet’s overall risk profile by creating an opportunity for continuing driver education and retraining. Regular reviews of driver telematic data can help correct improper behaviors and reduce accidents. And sharing the data with insurers can help transportation companies obtain the best coverage and rates.
Reduce accidents and lawsuits by driving technology and training.
The cost of insurance for fleets per mile driven has increased 47% over the last 10 years, with rising costs for maintenance and repair and an uptick in litigation contributing to higher premiums. With a number of drivers on the verge of retirement and inexperienced drivers entering the workforce, premium costs could climb even higher.
The surge in “nuclear verdicts” — jury verdicts of $10 million or more — is adding to the industry’s burdens. An escalating number of lawsuits targeting commercial fleets are being financed by private equity firms, which can extend the length of litigation and reduce the likelihood of settlement. This problem is likely to worsen in 2023 and beyond.
However, the rise of in-cab telematics and driver and rear-facing cameras may aid driver training and help reduce claims. With technology able to record and almost instantly deliver accident
8. Supply Chain News “Supply Chain News: Impact of Rising Insurance Costs for Truckers,” February 22, 2022.
Technology
Resiliency
Vitality
Profitability
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down a vehicle, endangering the driver and others. In fact, a bad actor can hijack logistics, monitoring systems, telematics and more through a single vehicle’s access point.
Fleet carriers can mitigate these risks by implementing a minimum of multifactor authentication (MFA) and endpoint detection and response. Updating cyber security plans, reducing access to sensitive information and training drivers on how to recognize cyber scams are essential defenses against cybercrime.
Technology will boost safety, but cyber controls are essential.
For several years, fleet operators have embraced technology to improve safety, efficiency and vehicle performance, while demonstrating a good risk profile to insurers.
Technology is helping cut costs: For instance, route management software and diagnostic monitoring equipment are optimizing delivery planning and reducing repair costs. Electronic control units and logging devices can improve vehicle security and record driver behavior, thereby enabling insurers to reward safe drivers with reduced insurance pricing.
But with innovation comes risk. Transportation was the seventh-most targeted industry by hackers in 2021, with ransomware a significant threat. Cybercriminals who breach digital
in-cab systems can access fleet data and shut
10. CCJ Digital, “Cybersecurity tips fleets can use against modern-day pirates,” August 12, 2022.
HUB transportation specialists will work with you to develop a tailored strategy that will protect your bottom line, support your workforce and build resiliency for 2023.
Here are some initial considerations:
HUB transportation specialists will work with you to develop a tailored strategy that will protect your bottom line, support your workforce and build resiliency for 2023.
Here are some initial considerations:
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Be prepared.
Talk to a HUB advisor today.
Contact Us
Be prepared.
Talk to a HUB advisor today.
Contact Us
Be prepared.
Talk to a HUB advisor today.
Contact Us
HUB
HUB
HUB
Risk Advisor
Scott Fouts
Transportation Practice
Linkedin Profile
Risk Advisor
Chris Eastly
Transportation Practice
Linkedin Profile
Expert
Rebecca Larson
Transportation Practice
Linkedin Profile
Risk Advisor
Scott Fouts
Transportation Practice
Linkedin Profile
Risk Advisor
Chris Eastly
Transportation Practice
Linkedin Profile
Rebecca Larson
Expert
Transportation Practice
Linkedin Profile
Scott Fouts
Risk Advisor
Transportation Practice
Linkedin Profile
Chris Eastly
Risk Advisor
Transportation Practice
Linkedin Profile
Emphasize safety
Be transparent with your broker
1. American Transportation Research Institute, “An Analysis of the Operational Costs of Trucking: 2022 Update,” August 2022.
3. U.S. Energy Information Administration, U.S. All Grades All Formulations Retail Gasoline Prices, September 26, 2022.
4. Yahoo Finance, “Don’t expect gas prices to go much lower,” September 16, 2022.
6. CNBC, “Why driving big rig trucks is a job fewer Americans dream about doing,” July 5, 2022.
7. American Addition Centers, “Drug & Alcohol Rehab for Truck Drivers,” September 7, 2022.
2
3
4
5
6
7
8
9
9. American Trucking Research Institute, The Impact of Small Verdicts and Settlements on the Trucking Industry, November 17, 2021.
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11
11. FreightWaves, “6 lessons learned about cybersecurity and freight in 2021,” January 2, 2022.
2. The U.S. Bureau of Labor Statistics, “Consumer Price Index unchanged over the month, up 8.5 percent over the year, in July 2022,” August 15, 2022.
2. The U.S. Bureau of Labor Statistics, “Consumer Price Index unchanged over the month, up 8.5 percent over the year, in July 2022,” August 15, 2022.
4
5
5. American Trucking Associations, “Industry Short 80,000 Drivers Today, May Be Short 160,000 by 2030,” October 25, 2021.
5. American Trucking Associations, “Industry Short 80,000 Drivers Today, May Be Short 160,000 by 2030,” October 25, 2021.
6
7
8
9
8. Supply Chain News “Supply Chain News: Impact of Rising Insurance Costs for Truckers,” February 22, 2022.
10
11
10. CCJ Digital, “Cybersecurity tips fleets can use against modern-day pirates,” August 12, 2022.
Practice Leader
Transportation Practice
Michael Birge
Linkedin Profile
David Berno
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Lisa Paul
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Tim Horgan
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Rebecca Larson
Expert
Transportation Practice
Linkedin Profile
Scott Fouts
Risk Advisor
Transportation Practice
Linkedin Profile
Chris Eastly
Risk Advisor
Transportation Practice
Linkedin Profile
Practice Leader
Transportation Practice
Michael Birge
Linkedin Profile
David Berno
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Lisa Paul
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Tim Horgan
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Rebecca Larson
Expert
Transportation Practice
Linkedin Profile
Scott Fouts
Risk Advisor
Transportation Practice
Linkedin Profile
Chris Eastly
Risk Advisor
Transportation Practice
Linkedin Profile
Practice Leader
Transportation Practice
Michael Birge
Linkedin Profile
David Berno
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Lisa Paul
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Tim Horgan
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Rebecca Larson
Expert
Transportation Practice
Linkedin Profile
Scott Fouts
Risk Advisor
Transportation Practice
Linkedin Profile
Chris Eastly
Risk Advisor
Transportation Practice
Linkedin Profile
Practice Leader
Transportation Practice
Michael Birge
Linkedin Profile
David Berno
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Lisa Paul
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Tim Horgan
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Rebecca Larson
Expert
Transportation Practice
Linkedin Profile
Scott Fouts
Risk Advisor
Transportation Practice
Linkedin Profile
Chris Eastly
Risk Advisor
Transportation Practice
Linkedin Profile
Practice Leader
Transportation Practice
Michael Birge
Linkedin Profile
David Berno
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Lisa Paul
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Tim Horgan
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Rebecca Larson
Expert
Transportation Practice
Linkedin Profile
Scott Fouts
Risk Advisor
Transportation Practice
Linkedin Profile
Chris Eastly
Risk Advisor
Transportation Practice
Linkedin Profile
Practice Leader
Transportation Practice
Michael Birge
Linkedin Profile
David Berno
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Lisa Paul
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Tim Horgan
Chief Marketing Officer
Transportation Practice
Linkedin Profile
Rebecca Larson
Expert
Transportation Practice
Linkedin Profile
Scott Fouts
Risk Advisor
Transportation Practice
Linkedin Profile
Chris Eastly
Risk Advisor
Transportation Practice
Linkedin Profile
2. The U.S. Bureau of Labor Statistics, “Consumer Price Index unchanged over the month, up 8.5 percent over the year, in July 2022,” August 15, 2022.
2. The U.S. Bureau of Labor Statistics, “Consumer Price Index unchanged over the month, up 8.5 percent over the year, in July 2022,” August 15, 2022.
5
6
7
5. American Trucking Associations, “Industry Short 80,000 Drivers Today, May Be Short 160,000 by 2030,” October 25, 2021.
5. American Trucking Associations, “Industry Short 80,000 Drivers Today, May Be Short 160,000 by 2030,” October 25, 2021.
8
9
8. Supply Chain News “Supply Chain News: Impact of Rising Insurance Costs for Truckers,” February 22, 2022.
10
11
10. CCJ Digital, “Cybersecurity tips fleets can use against modern-day pirates,” August 12, 2022.
80,000
160,000
2030
2023
Current and
projected transportation industry driver shortage
Expert
Rebecca Larson
Transportation Practice
Linkedin Profile
Practice Leader
Michael Birge
Transportation Practice
Linkedin Profile
Chief Sales Officer
David Berno
Transportation Practice
Linkedin Profile
Chief Strategy Officer
Lisa Paul
Transportation Practice
Linkedin Profile
Risk Advisor
Scott Fouts
Transportation Practice
Linkedin Profile
Expert
Rebecca Larson
Transportation Practice
Linkedin Profile
Risk Advisor
Chris Eastly
Transportation Practice
Linkedin Profile
Practice Leader
Michael Birge
Transportation Practice
Linkedin Profile
Chief Sales Officer
David Berno
Transportation Practice
Linkedin Profile
Chief Strategy Officer
Lisa Paul
Transportation Practice
Linkedin Profile
Chief Marketing Officer
Tim Horgan
Transportation Practice
Linkedin Profile
Expert
Rebecca Larson
Transportation Practice
Linkedin Profile
Risk Advisor
Scott Fouts
Transportation Practice
Linkedin Profile
Risk Advisor
Chris Eastly
Transportation Practice
Linkedin Profile
Practice Leader
Michael Birge
Transportation Practice
Linkedin Profile
Chief Sales Officer
David Berno
Transportation Practice
Linkedin Profile
Chief Strategy Officer
Lisa Paul
Transportation Practice
Linkedin Profile
Chief Marketing Officer
Tim Horgan
Transportation Practice
Linkedin Profile
Expert
Rebecca Larson
Transportation Practice
Linkedin Profile
Risk Advisor
Scott Fouts
Transportation Practice
Linkedin Profile
Risk Advisor
Chris Eastly
Transportation Practice
Linkedin Profile
Practice Leader
Michael Birge
Transportation Practice
Linkedin Profile
Chief Sales Officer
David Berno
Transportation Practice
Linkedin Profile
Chief Strategy Officer
Lisa Paul
Transportation Practice
Linkedin Profile
Chief Marketing Officer
Tim Horgan
Transportation Practice
Linkedin Profile
Expert
Rebecca Larson
Transportation Practice
Linkedin Profile
Risk Advisor
Scott Fouts
Transportation Practice
Linkedin Profile
Risk Advisor
Chris Eastly
Transportation Practice
Linkedin Profile
2023
Drivers
The cost of trucking
in 2021 increased to its highest level in 15 years, coming in at
$1.855
per mile.
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