Enhanced driver safety key to reducing auto liability risk: Broker

SAN DIEGO – Sustainable policies and protocols to enhance driver safety are just a few ways to reduce risk for the auto liability market, a broker said Tuesday.

“Everything in life is changing at rapid speed, why shouldn’t your protocols?” Ania Caruso, an Atlanta-based casualty practice leader and managing director at Arthur J. Gallagher & Co., said during a session at Riskworld, the Risk & Insurance Management Society Inc.’s annual conference.

Auto accidents were the second leading cause of preventable injury-related death in 2023, when 40,990 roadway fatalities occurred. Private insurers pay the majority of claims for fatal crashes, which cost nearly $4 million on average, Ms. Caruso said.

Social inflation, litigation financing, general inflation and challenging jurisdictions, dubbed “judicial hellholes,” continue to drive auto liability costs higher, she said.

The continued increase in distracted driving, marijuana use while driving, and the technological advancement of vehicles are also contributing to higher rates, Ms. Caruso said.

Risk managers can help reduce the costs of auto liability coverage by reviewing and assessing hiring practices, new employee orientation protocols, driver skill development, ongoing training, technology adoption and leadership engagement, she said.

Improving an auto casualty risk profile and seeking out coverage that addresses current and potential risks should yield lower insurance costs, she said.