SAN DIEGO – Permanent policies and protocols to increase driver safety are some of the ways to reduce risk for the auto liability market, a broker said Tuesday.
“Everything in life is changing at a rapid pace, why shouldn’t your protocols change?” Atlanta-based casualty practice leader and Arthur J. Ania Caruso, managing director of Gallagher & Company, said during a session at RiskWorld, the annual conference of the Risk & Insurance Management Society Inc.
Auto accidents were the second leading cause of injury-related deaths in 2023, with 40,990 road deaths. Ms. Caruso said private insurers pay most of the claims from fatal crashes, which cost an average of about $4 million.
Social inflation, litigation financing, general inflation and challenging jurisdictions, he called “judicial hell,” are driving up auto liability costs, he said.
Ms. Caruso said the continued increase in distracted driving, marijuana use while driving and technological advancements in vehicles are also contributing to the higher rates.
He said risk managers can help reduce the cost of auto liability coverage by reviewing and evaluating hiring practices, new employee orientation protocols, driver skills development, ongoing training, technology adoption and leadership engagement.
Improving the auto casualty risk profile and seeking coverage that addresses current and potential risks should reduce insurance costs, he said.
