19Insurance Business ReviewAUGUST 2025social inflation extends to auto insurance, where the impact is acutely felt.2. Litigation: Legal battles can be protracted and costly, further driving up the cost of claims.3. Repair Costs: The expense of repairing commercial vehicles, especially in accidents involving less experienced drivers, is a significant factor contributing to claims severity.4. Distracted Driving: In an age of smartphones and constant connectivity, distracted driving is a pervasive issue. It leads to an increased frequency of accidents and claims.5. Lack of Medical Advancements: The absence of substantial advancements in medical treatments can result in prolonged recovery times and higher medical costs.6. Economic Factors and Inflation: The economic climate, marked by inflation and other factors, can significantly affect the cost of claims.The Way ForwardIf the severity and frequency of claims remain elevated at pre-COVID levels, it will continue to have a negative impact on commercial auto insurance lines for U.S. carriers. To navigate these challenges successfully, a multi-pronged approach is required.First, insurance professionals must grasp the intricacies of the evolving landscape of auto claims, including social inflation, litigation funding, distracted driving, and the cost of medical care. Second, clients, individuals, and businesses must collaborate with agents and risk management professionals to institute and enforce safety measures. This includes continuous training for all drivers, not just new recruits. Telematics and safe driving practices should be integral to this training. Finally, insureds and fleet/safety managers should periodically review drivers' motor vehicle records and backgrounds. This practice not only reduces claims but also ensures a safe and accountable driving workforce.One80 Claims ExpertiseAt One80, our claims capabilities are among our greatest assets. The organization has been recognized over the past two years, garnering industry awards for our deep expertise in the Transportation industry, as well as the Marine, Environmental, Warranty, Travel, and Public Entity sectors. To that end, and in the face of labor shortages and their far-reaching implications, One80 continues to adapt, evolve, and innovate. By understanding the root causes of increased claims frequency and severity and by implementing effective risk management strategies, One80 provides a safer and more secure future for all stakeholders in the transportation and logistics industries and beyond. As seasoned drivers retire from the field, companies must recruit new talent to fill the gap
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