The commercial auto insurance market was valued at approximately $40.45 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 8.38%, potentially reaching $90.41 billion by 2033, according to Spherical Insights. And the global 2024 cargo transportation insurance segment is projected to grow from $54.72 billion in 2023 to $57.06 billion in 2024, reflecting a compound annual growth rate (CAGR) of 4.3%.
Navigating this complex landscape requires a delicate balance of strategy, partnerships, and foresight – and a dash of innovation. Harish Kapur (pictured), CEO of Across America Insurance Services has been at the forefront of tackling this challenge – especially in a market strained by soaring costs and regulatory intricacies.
“Reinsurance costs have skyrocketed,” Kapur told IB. “It’s hard to get reinsurance because trucking is a segment that reinsurers have lost a lot of money on. Even if you’ve had positive results over the years, reinsurers haven’t, and that’s what drives their decisions.”
The impact of these rising costs ripples through the entire insurance chain. Reinsurers push carriers to charge more, which ultimately affects brokers and the insureds. Truckers, in particular, are feeling the pinch.
“During COVID, truckers made a lot of money. Post-COVID, they were still doing well, but the last year and a half has been different—they’re struggling now,” Kapur said. “Our reinsurers are pushing us to charge more and then [pass] it on to the insureds or end users – and it’s been challenging.”
Across America Insurance has responded to these challenges with a structured and selective approach.
“We have a strong bench of reinsurers that have been on our panel for the last five years,” Kapur said. This consistency is complemented by their robust underwriting practices and in-house claims department, which Kapur sees as a cornerstone of their competitive edge.
“We’re very selective about who we work with,” he said. “We have less than 75 agents nationwide. Many MGAs work with 500 to 600 agencies, but we focus on a small, dedicated group that understands trucking and values our relationship.”
This focus on quality over quantity is reflected in their agent vetting process. As Kapur told IB, it begins with a thought-out process of planning.
“There’s a lot of due diligence we conduct before appointing an agency. They have to know trucking, and we don’t want to just be a spreadsheet in their portfolio,” Kapur said. “We’re creating value for our agents, not just giving them a price. They want to keep that value because they know if they don’t align with us, we won’t hesitate to part ways.”
Internally, the company has embraced technology to optimize operations without losing its people-oriented focus.
“We invest a lot of time in our people and let them run the show,” Kapur said, adding that automation handles the redundant tasks, freeing staff to concentrate on underwriting and claims management. “It’s not AI – it’s automation that runs the system and keeps our people sharp.”
And Kapur isn’t alone. Research from Binariks finds the global AI in the insurance market was valued at a staggering $4.59 billion in 2022 and is projected to reach approximately $79.86 billion by 2032. For insurers themselves, RDT’s recent Tech Poll revealed that 61% of firms are currently utilising generative AI, with 52% of Insurtech professionals expressing confidence that AI is being used in a beneficial way by both customers and brokers.
At Across America Insurance Services, their claims department is another crucial element of their strategy.
“Claims profit and loss matter more than underwriting,” Kapur said, pointing to the financial pitfalls of mishandled claims. “A lawyer can charge $250 just to adjust a claim, and that’s your money being drained. We handle claims in-house to avoid unnecessary legal costs and settle quickly if we’re responsible.”
Strategic partnerships further bolster their position. Collaborating with entities like Incline Americas has opened doors to new opportunities, particularly in markets requiring flexibility and innovation.
“Incline Americas brought us onto their E&S platform, making us their first MGA for trucking,” Kapur said. “They’re newer and eager to expand, which aligns with our goals. It's just a very good [partnership] – [it’s] not just [about the] numbers. I always say that business is done with people who share your values- and when you can offer something significant, it stops being just a transaction and becomes a true partnership.”
Looking towards the industry at large, Kapur doesn’t believe the market will soften soon.
“In nine years on the carrier side, it’s only gotten tougher,” he said. “Judicial inefficiencies and nuclear verdicts are inflating costs, and many carriers are scared to fight frivolous claims. At some point, carriers have to stand their ground, even if it means losing occasionally.”
And, while innovation in technology is often touted as a solution, Kapur tempered expectations, particularly around telematics.
“Telematics is overrated in trucking because of the high driver turnover,” he said. “Sixty percent of the driver pool changes by the time a policy renews, making telematics data unreliable for underwriting.”
Instead, Across America Insurance has focused on practical tools like dashcams.
“We’ve implemented forward and rear-facing dashcams, and we’re now testing side-view cameras. These have been game-changers in defending against false claims,” he said. “In one case, side-view footage made a plaintiff’s attorney drop the case entirely. At the end of the day, investing in our people and maintaining strong partnerships keep us ahead.”
