Transportation insurance is going through a transformational phase, especially in the trucking and commercial vehicle sector. Speaking to International BaccalaureateExpanding into niche sectors provides opportunities, said Drew Easton, executive vice president and branch president at Amwins National Transportation Underwriters (ANTU).

“Just look at those grey trucks that drive around your neighborhood delivering packages,” Easton explained. “We’re also seeing the radius of traditional long-haul carriers shrink.”

Amwins leverages its specialization in different divisions—benefits, brokerage, programs, and underwriting—to create specialized programs and capabilities within even broader categories. Easton himself runs an environmental transportation program for hazardous and non-hazardous goods carriers, which is actually a specialized specialty within ANTU’s larger transportation specialty.

ANTU, or as Easton jokingly calls it, “Ain’t U?” represents a strategic merger of Amwins’ capabilities and those of the former National Truck Underwriting Managers (NTUM). The merger has strengthened its position with retail and market partners, unifying its brand under the Amwins ANTU banner.

Focus on the field

Easton said the industry’s focus on specialization is linked to the ability International BaccalaureateAs markets become more niche, the homogeneous exposure created becomes attractive to insurers, enhancing recognition of expertise and facilitating access to unique capabilities.

“We’ve really focused on creating proprietary relationships for products,” Easton added, aiming to offer something exclusive to partners, a trend that competitors are increasingly emulating.

Technological advances and the use of data are also reshaping transportation insurance. The industry, which has traditionally been a late adopter of technology, is now embracing advanced data analytics.

“We have this huge amount of data, but we have a challenge in digesting it,” Easton admitted. However, thanks to modern tools and sophisticated data analysis, the industry is developing predictive models and moving from retrospective loss assessment to future exposure and pricing models.

According to Easton, digital transformation in insurance is ubiquitous. Road haulage companies share operational data, such as location, speed and extreme braking, which insurers use to assess risk quality. This data sharing drives better operational control and predictive insights.

“The data we collect through this medium can be very predictive,” Easton explained, emphasizing the industry’s shift toward real-time data. The data can also help create opportunities. For example, a quick search of an agency management system could reveal hundreds of unsubmitted applications, highlighting the need to build capacity for specific new areas.

The importance of guidance

Speaking about the challenges facing the IPO, Easton said: International Baccalaureate Concerns about rising prices and the severity of litigation and claims continue to plague practitioners – underscoring the importance of mentoring and development for new entrants to the industry.

“We expect more of these new people (claims, retail and underwriting staff) to come in,” he added. “Team leaders, like myself, are there to mentor and guide. But I think we may be missing opportunities.”

In the old days, insurance companies offered sophisticated educational opportunities, including claims and underwriting schools. Formal education provided a deep understanding of the risk transfer process and a comprehensive knowledge of coverage and models. Partnering with a subject matter expert or niche player often provided specialized expertise that would take a career, in the absence of “traditional” training.

There is also a growing need for more comprehensive communication in today’s broker-client relationships. As Easton points out, “Answering the phone, responding to emails, and providing referrals are essential but often overlooked aspects of good service.”

“I think we tend to take service for granted,” he said. International Baccalaureate“I can’t tell you how many times people are surprised that their call has been answered by someone. That’s what we strive for. We’re certainly not the solution to everything, but we will answer the phone and provide guidance. We will respond to that email and get you where you want to be.” At ANTU, they are ready to help.

Challenges in the field of transport insurance

The frequency and severity of claims are also notable challenges. Easton noted that while the number of severe claims has increased, the actual severity has not necessarily changed. In fact, the financial claims associated with these claims have risen dramatically. Factors such as litigation funding and ballooning medical expenses are driving up costs. Still, Easton remains optimistic, pointing to gradual changes in tort reform and legal regulations aimed at curbing these trends.

“We’ve seen some changes,” he said. “We’ve seen some changes in the parties to the case with tort reform and laws that try to put reasonable controls on liability and litigation. In some cases, people have to disclose that there is a third party that is providing litigation funding. I think that’s where I’m optimistic — that we as an industry have to lead the way to a more reasonable position on tort liability here in North America. (That means) we can get back to what insurance used to be — where the many pay for the losses of the few. Now, unfortunately, we need a lot more of the ‘many’ to pay for these losses because they’ve become somewhat overvalued.”