How Autonomous Vehicles Might Transform Trucking Insurance

Panelists (from left) Joseph Richley of Kenan Advantage Group, Jack Legler, Mike Dorfman, Clayton Cavell, and Andrew Roth discuss AVs and the future of trucking insurance. (Anneliese Mahoney/Transport Topics)

March 1, 2023 10:25 AM, EST

Impact of Autonomous Vehicles on Trucking Insurance

ORLANDO, Fla. — A recent panel of experts held on February 28 during the Technology & Maintenance Council Annual Meeting highlighted the significant implications of autonomous vehicle (AV) technology on trucking insurance.

Gradual Technology Adoption

Mike Dorfman, COO at Koffie Financial, noted that emerging technologies first appear in large fleets before gradually reaching owner-operators over a decade. He suggested that the rollout of AVs would likely follow a similar pattern and raised concerns about whether small and mid-sized carriers would face increased insurance rates as a result.

Insurance Rate Concerns

Dorfman expressed the need for careful structuring of insurance products for AVs, emphasizing that even fleets without immediate access to such technology might still experience the financial impacts associated with its adoption.

Ownership Structures and Liability

Clayton Cavell, president at Paul Hanson Partners, mirrored Dorfman’s worries, bringing up the potential disparities in how the technology affects smaller fleets. He mentioned that if truck manufacturers shift to leasing rather than selling vehicles, it could simplify liability considerations for insurers.

Data Utilization Challenges

With conventional trucking, insurance firms rely on decades of data to assess premiums; however, this is not the case with AVs, as the technology is still in its formative stages. Andrew Roth, director of insurance at Koop Technologies, explained how removing the driver from the vehicle introduces uncertainties that complicate risk assessment.

Positive Prospects for Data Collection

Despite the challenges, Roth remained optimistic, highlighting the potential to leverage the data collected by AVs. He discussed the importance of effective communication with manufacturers and a deeper understanding of vehicle design and real-world tests.

AI Responsibility in Fleet Operations

TMC Technical Director Jack Legler pointed out that as AI replaces human drivers, fleets must take responsibility for ensuring its effectiveness. He suggested that fleet maintenance could play a more crucial role in the underwriting process and the relationship between various types of liabilities.