Insurance Expense (%) (INSURE)

FreightWaves Customer SuccessTCA Benchmarking Indices

What is it?

This index expresses the total insurance expense related to the delivery of a load on a percentage of revenue basis. The data components of this index, reported by carriers, include Physical Damage Insurance (premium and deductibles), Cargo Insurance (premium and deductibles) and Liability Insurance (premium and deductibles). Insurance expense also includes any self-insured accident/driver damage. The expense is calculated relative to total revenue (linehaul and accessorial revenue). The carriers reporting the data for this index are participants in Truckload Carriers Association’s TPP program.

Formula: [insurance expense / (Linehaul revenue + accessorial revenue)] * 100

Who is interested?

Anyone that has an interest in freight movement patterns. i.e. Shippers, freight brokers, fleet managers, executives in a transportation company, owner operators.

What does it tell me?

In aggregate, this measure is a lagging indicator of carrier safety performance, and the availability/capacity of insurance companies and coverage within the for-hire trucking space. A large percentage of carriers included in the reporting dataset self-insure a portion or all of the risk associated with the coverages disclosed above.