Two topics have been dominating the conversation across California’s trucking industry in recent months: California Air Resources Board (CARB) regulations and California Assembly Bill 5 (AB5). As these laws take effect, trucking company owners and drivers are working to understand the laws’ impact on daily operations and their insurance programs (source 2).

The trucking industry continues to bounce back from the 2020 pandemic, but the recovery hasn’t been all smooth sailing. According to the American Transportation Research Institute’s (ATRI) 2022 survey, 2021 was the costliest year on record for the trucking industry, and the trend was expected to continue with 2022 (source 1).

Motor carriers have traditionally been paper-based businesses with bills of lading, inspection reports, delivery receipts, and other necessary operational documents kept in tangible files. As more trucking businesses go digital, they are entering a new world of improved efficiency that also comes with larger data volume and increased cyber risk.

Commercial trucking often serves as a trusted barometer for the U.S. economy. In 2020, America’s truckers carried 10.23 billion tons of freight and generated $732.3 billion in revenue (source 1).

It’s no secret that the excess trucking insurance landscape has been rocky in recent years. Pricing for commercial auto insurance began rising near the end of 2011 and increased for 40 consecutive quarters. A recent history of harsh vertical judgments also seriously hampered the sector. Over the last ten years, commercial auto underwriters recorded more than $22 billion in losses (source 4). However, after several years of keeping pace with or surpassing primary carrier increases, the excess trucking market is starting to show some stability.