Photo via FreightWaves
The freight brokerage insurance market is experiencing significant upheaval, with premium costs rising by double-digit to triple-digit percentages across the sector. According to industry analysis, several converging factors are driving the sharp increases, including a notable legal verdict against CH Robinson, tightening underwriting standards, and escalating cargo theft losses. Insurers are reassessing their exposure to the freight broker segment, leading to higher costs for companies seeking coverage renewal.
Underwriters are pulling back from the market as loss ratios deteriorate, prompting some carriers to exit the space entirely or implement stricter underwriting criteria. Excess liability coverage is undergoing particular scrutiny, with insurers adjusting terms and conditions to reflect the elevated risk profile. The shift reflects broader concerns about claims frequency and severity within the broker community, as well as the impact of high-profile legal judgments on industry risk assessment.
Brokers navigating this hardened market face pressure to secure coverage before rates climb further or availability becomes constrained. The combination of underwriting discipline and supply-side constraints is reshaping the competitive landscape for freight brokers, particularly smaller operators with limited negotiating leverage. Industry participants are closely monitoring whether these conditions stabilize or whether further rate escalation lies ahead.
