Jake Poulter, Assistant Director at Burns & Wilcox Global Solutions
The specialist capabilities of the Lloyd’s and London markets are increasingly being called upon to meet the evolving needs of the North American transportation industry. Truck values now break the $1m price point, theft is soaring and autonomous trucks require innovative insurance solutions.
Rising unit values in truck insurance
Advancing technology has made truck tractor units (the front part of a semi-truck) far more sophisticated – and their value has risen accordingly. At the top end of the market, they can come with a price tag of more than $1m. Tow trucks also come with significant values that can range from $60,000 up to $750,000. This means they likewise require specialist policies.
We’ve seen the demand for higher value cover first-hand. In fact, it played a significant part in our move to negotiate and secure a $1m+ limit on our auto physical damage proposition, up from the previous limit of $250,000. Although it was always possible to syndicate cover for larger risks, the new single-vehicle limit reflects the trend towards higher values.
It is worth noting that while increased sophistication does come at a cost, it is not all bad news for underwriters. The technology also improves the vehicles’ safety performance and thus reduces the risk they represent.
London market offers greater flexibility
Finding competitive insurance for such high-value vehicles – whether as single units or as part of a fleet – can be difficult in North American domestic markets, where insurers have shown limited appetite for such exposures. This has driven many operators to place policies in London, where underwriters have demonstrated greater capacity to tailor solutions to complex transportation risks.
For example, in London it is possible to negotiate auto physical damage accounts that allow the insured to earn up to 25% in return premiums. This is an attractive proposition that creates a powerful incentive for operators to actively implement robust risk-management practices and improve their risk’s performance.
London underwriters have also demonstrated flexibility in their ability to provide a range of dynamic deductible structures and options that are rarely available in North American markets.
These structures are also being used to enable London to compete on distressed accounts adding another dimension to its flexibility.
Market pressures
A major challenge for both operators and underwriters remains the shortage of truck drivers. Figures from the American Trucking Associations show that in 2024, numbers were down by almost 30,000.[1] This issue is compounded by the influx of inexperienced drivers into the industry. Meanwhile, the high value of cargo – whether that be petroleum, retail goods or high-end vehicles – means there is significant risk of a single accident resulting in a large loss.
This is not a challenge to which there is an immediate solution because it takes time for drivers to gain the experience that ultimately makes them better risks. But the specialist nature of the expertise in London means it is well-positioned to develop targeted insurance solutions.
Growing cargo values increase theft risk
The same pattern is evident in the cargo sector, where rising values are making it more difficult for hauliers to secure cover. A widely publicised theft last year – involving two trucks carrying 24,000 bottles of tequila worth $1m[2]– illustrates both the increasing appeal of cargo to criminals and the need for higher limits in the motor-truck cargo market.
The threat of theft shows little sign of abating. The American Trucking Associations cites data from Verisk CargoNet,[3] which recorded a 27% surge in cargo theft in 2024. The organisation estimates there will be a further jump of 22% in 2025. Rising values and increased prevalence of theft have prompted the London Market to develop a number of excess motor-truck cargo products.
Future growth in US transportation
Another growing area of ultra-specialist cover is the provision of insurance for autonomous vehicles, including trucks and other means of transport such as taxis. As pilot programmes and real-world deployment of autonomous transport projects expand, data and understanding around the exact nature of these exposures are improving. This is still an immature area of the insurance market, but one that is set for significant growth, with a number of new propositions becoming available in the coming years.
The Lloyd’s and London insurance markets have a pedigree that dates back hundreds of years, and over the decades they have repeatedly demonstrated their ability to innovate and provide new insurance solutions that cater for the needs of fast-evolving markets. This is true of the US transportation sector. With specialist capacity and genuine flexibility, Lloyd’s and the London market are well positioned to underwrite and help manage the high-value, tech-driven risks increasingly placed with UK underwriters.
[1] Economics and Industry Data, American Trucking Associations https://www.trucking.org/economics-and-industry-data
2 How thieves stole 24,000 bottles of Guy Fieri’s tequila in a highway heist How thieves stole 24,000 bottles of Guy Fieri’s tequila in a highway heist – CBS News
3 Cargo Theft Isn’t a Trucking Problem. It’s a National Crisis, American Trucking Associations