“If a carrier can’t afford premiums on a $2 million insurance policy ... should be ... trucking"

Discussion in 'Other News' started by Doealex, May 16, 2021.

  1. Doealex

    Doealex Medium Load Member

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    Your industry is constantly lobbying state and federal governments for more regulations and higher fees while minimizing your risks and maximizing your profits. Most of your arguments are arbitrary (55 mph highway speed limits) at best and predatory (informing government authorities if/when policyholder discontinues his/her policy) at worst. With all due respect, do you really expect us to bow down and agree with all of your arguments here?
     
    Last edited: May 18, 2021
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  3. ZVar

    ZVar Road Train Member

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    There isn't much difference in his industry regards to lobbying except I guess the insurance industry has better lobbyists. Maybe because tey have more data, maybe because they know how to talk to the lawmakers better. In either case, OOIDA, ATA, and various other groups do the same thing. Only we are hampered by ATA usually fighting OOIDA, and OOIDA fighting against more accurate ways to log (their fight against ELD's) and not fighting for more sensible HOS.
     
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  4. Slowpoke KW

    Slowpoke KW Road Train Member

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    Fixed that for ya
     
  5. calnca

    calnca Medium Load Member

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    First off, since when did making a profit become a crime? Our shareholders REQUIRE us to produce a profit....if we didn't they wouldn't make their investment, and increase our capital to allow us to write more insurance. Underwriting wise, the industry as a whole makes 2-3% "underwriting profit"....which isn't much really.......what do you think Apple, Microsoft or Amazons profit margin is?

    No offense, but you clearly don't know what you are talking about. The Insurance Industry is not regulated at the Federal level, only the State level. Do we lobby at the federal level for highway safety etc yes, but rates/premiums and underwriting are all regulated at the state level.

    I've never seen a state DOI that isn't a "Consumer Advocacy" group, made up of bleeding heart liberals, so the hoops we have to go through to make changes for rate filings is a uphill battle.

    If you really want to educate yourself, contact any state DOI and ask for a copy of the rate filing for any insurance company. Through the FOI Act you can get copies no sweat....then you can see what we have to go through to get rate relief. For an example it took us over 10 years to get CA to finally agree to a rate revision.

    I like your comment about "predatory" behavior......if we don't advise the FMCSA when your policy cancels THEY make us responsible even if the policy IS cancelled, so of course we are going to advise them....we don't want to have to pay your losses without the benefit of premium.

    Please try to make comments based on facts and not "your feelings" on a matter.
     
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  6. Doealex

    Doealex Medium Load Member

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    You don't have to educate me on your business and industry, and not bragging here but I took some undergraduate classes covering insurance business before I got my MBA 20 years ago. My concern is the more complicated is commercial insurance the more loopholes you leave in case there's a payout. Other words, it seems like your policyholders need to be lawyers or need to consult a lawyer to get all the details reviewed. Of course, that changes if you know a knowledgeable agent on a personal level.
    Do you realize that a lot of trucking companies had to close their doors after they got hammered with insane rate increases on their renewal after 9/11?
    Who do you think is going to pay for all the commercial losses from last year's nationwide commercial properties' damages caused not by the trucking industry?
     
    Last edited: May 19, 2021
  7. calnca

    calnca Medium Load Member

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    Well I've had a graduate degree in insurance....actually doing it for 52 years....which like anything, is REAL, as compared to what they teach in the lib factories, masquerading as colleges now days.

    Why do you think those "insane rate increases" happened? It's because of losses......when losses and expense exceed income (premium), you have to increase rates or go out of business. The beauty of the free market system is that there are numerous carriers if you don't like what you have......interestingly our rates/premiums are pretty comparable to Progressive's....mainly because as two of the largest writers of trucking our loss experience with the non mega fleet business is similar....so our rates are similar.

    So quit putting brain dead drivers behind the wheel, increase training (our experience for new CDL drivers is insanely bad....so we seldom do them anymore), root out the bad ones and IF that has an impact on losses we will minimize the future increases. But you have to understand with the coming inflation and the attorneys continuing to seek nuclear verdicts, rates WILL continue to rise.
     
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  8. xsetra

    xsetra Road Train Member

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    Federal Motor Carrier and Safety Administration.
    It has Federal in it's name and it's purpose, FMCSA requires all carriers to have a minimum amount of coverage.
    How is this not a Federal enforced regulation?
    There are many more Federal and State regulations Insurance companies have to follow.

    The reason for a business is to make a profit. I don't think the company I have insurance with has to ask any state or federal agency to increase my premium each year. Matter of fact mine was reduced the last couple years. If my premium can be reduced or stay the same, with $1 million coverage, $200,000 cargo. Total annual premium under $7g. Where is the need to require me to increase the coverage to $2 million.
    I say leave the insurance minimums where they are. Can I afford an increase, yes I can. This cost will be passed on to the consumer eventually.

    You mention the underwriting profit. What about the profit that is made from the Billions of dollars in premiums that are invested to the benefit of the Insurance company. What is the % profit that accounts for.

    Don't misunderstand me, Profit is necessary to stay alive. I don't think minimums should be increased, definitely should not be tied directly to inflation.
    I feel there should be a cap on awards given to insurance claims. Most accidents are just accidents. Not many drivers are intentional about getting in an accident. Poor judgement, poor decision yes. Not intentional.
     
  9. xsetra

    xsetra Road Train Member

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    Most of these brain dead drivers (my guess) are employed by the mega fleets. That's why they have electronic automatic everything in their trucks. (My guess) its' cheaper to pay for the truck than it is to train someone "how to drive". By that I mean how to operate a truck on a professional level. NOT just point the wheel down the road.
    I read a story the other day how many of the new drivers have problems with simple math. Sad to see the dumbing down of the American work force.
     
  10. Doealex

    Doealex Medium Load Member

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    You didn't answer my questions; why do you have to combine all of your commercial policies to calculate the risks of the trucking industry? Trucking industry has nothing to do with commercial properties.
    Is this why your industry pushing for 2 million liability down our throats?
    As for your concerns regarding hiring inexperienced drivers, I don't have drivers for over 5 years now, I only work with experienced drivers (like myself). And thank you for your input on this thread - I got an answer for the original topic. Megas are pushing for 2 million coverage because they have to hire anybody with pulse to drive their trucks. And experienced owner operators have to pay for the risks associated with Megas reckless and unsustainable business model.
    And to someone who posted here that all Megas are self insured you're dead wrong. I know for a fact that they have to get multiple insurance carriers to cover their policies; and some of the risks they have to self-insure. Megas investors don't like to cover those risks; hence is all these lobbyings to increase the liability for everyone in the industry.
    P.S. Reagan said it best: "“Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”. So the more you lobby the government the bigger it gets, and we know the bigger the government the smaller it's citizens.
     
    Last edited: May 19, 2021
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  11. God prefers Diesels

    God prefers Diesels Road Train Member

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    We basically need tort reform, but for insurance. Ambulance chasers shouldn't exist.
     
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