World Insurance Associates LLC has acquired the business of Royalty Insurance Services, a Van Nuys, Calif.-based agency specializing in commercial trucking coverage.
The transaction was completed on Jan. 1. Financial terms were not disclosed.
Royalty Insurance Services has operated for more than two decades, offering insurance products tailored to the needs of trucking businesses, including both long-haul and local operations.
Oganes Sepuhyan, president of Royalty Insurance Services, said the agency focuses on personalized insurance solutions, working closely with clients to tailor coverage to their operational needs.
World CEO and co-founder Rich Eknoian welcomed Royalty to the firm and said the agency is recognized within the trucking sector for its experienced staff and commitment to serving clients.
Since its inception in 2011, World Insurance Associates has completed over 200 acquisitions. In 2024, the Top 50 brokerage completed 36 acquisitions.
This figure represents a decrease from previous years, reflecting a broader trend in the insurance M&A market, which saw a 10% decline in total deals compared to 2023.
World’s expansion into the trucking segment is in-line with several emerging trends projected for 2025.
That said, in 2024, trucking companies faced an average insurance premium increase of 12.5%, contributing to an overall 6% rise in operational costs. This surge was primarily driven by escalating vehicle repair expenses and heightened litigation risks.
For the current year, GEICO's entry into the commercial trucking insurance market is anticipated to introduce more competitive and realistic premiums for owner-operators and small motor carriers. This development is expected to alleviate some financial pressures within the industry.
The adoption of telematics and data-driven insurance models is also on the rise. By leveraging real-time data on vehicle performance and driver behavior, insurers can offer usage-based policies, potentially leading to reduced premiums for safe driving practices.
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