In October, Matthew W. Daus, founder and chair of the transportation practice group at Windels Marx Lane & Mittendorf, LLP, delivered a keynote speech at the Chauffeur Driven/NLA Show near Washington, D.C about the escalating insurance crisis in the for-hire vehicle industry. He detailed contributing factors to rising rates and offered strategic solutions to stabilize and reduce long-term costs, blaming the increased frequency and severity of claim payouts, the rise in distracted driving, and the advanced technologies that have driven up repair costs for causing the spike in insurance rates this past decade.
In the short term, Daus said the industry should focus on implementing telematics programs to monitor driving behavior to help lower premiums by reducing risk and discussed the importance of educating clients to help manage risk proactively. Mid-term solutions included exploring alternative insurance models, such as captive insurance, and reforming the no-fault insurance system to reduce fraudulent claims. Long-term strategies focused on systemic changes, like advocating for tort reform to limit excessive litigation and damage awards.
Source: Windels Marx
