As 2025 unfolds, the trucking industry is being shaped by a convergence of trends that reflect both ongoing challenges and transformative opportunities. These five key developments are not just shaping the present but also redefining the future of trucking, offering insights into how fleets and insurance agents can adapt to an evolving landscape.
1. Rising costs mitigated by the push for telematics-powered insurance
Fleet insurance costs have been climbing steadily, with rates increasing by an average of 9.28% in 2024. This trend has been fueled by inflationary pressures, nuclear verdicts, and an increasingly litigious environment where commercial vehicle accidents are targeted for legal exploitation. Traditional insurance models often group fleets into broad risk categories, leading to rate hikes that don’t always reflect a fleet’s actual safety performance.
Telematics-based underwriting is transforming the industry by using real-time data to assess risk more accurately. Metrics such as speed, braking patterns, and hours of service (HOS) allow insurers to offer fairer pricing. For example, fleets with strong safety records can qualify for discounts, while higher-risk profiles are incentivized to improve. This trend is redefining how risk is assessed and priced, creating opportunities for fleets to control costs through improved safety.
According to our Co-founder and CEO, Rushil Goel: “Insurance rates are going up, but telematics-driven underwriting allows fleets to take advantage of their driving behavior. If you even get 10% safer, your costs stay flat or even go down.”
2. Growing adoption of in-cab cameras
Video telematics is becoming a cornerstone of modern fleet operations, with its adoption expected to grow at a compound annual growth rate (CAGR) of 19.0% in North America, reaching 11.7 million installed systems by 2028. These systems, which include dashcams and side cameras, provide critical insights into driver behavior and operational safety.
Nirvana is seeing approximately 70% of our fleet customers already have cameras installed. These tools prevent accidents, provide a single source of truth for claims, and help coach drivers toward safer behavior.
The data captured by video telematics enables fleets to identify high-risk behaviors, such as hard braking or tailgating, and address them through targeted coaching. Insurance carriers are leveraging this technology to enhance underwriting accuracy and expedite claims processing. By reducing liability and streamlining operations, video telematics is driving significant operational improvements across the industry.
3. The expanding role of AI in insurance
Artificial intelligence is emerging as a transformative force in the trucking industry, with applications ranging from risk assessment and dynamic pricing to claims handling and safety interventions. By automating data analysis, AI enables fleets to identify trends, streamline processes, and focus resources on high-impact areas.
We are committed to delivering an exceptional claims experience to our customers. In 2024, we made significant advancements to fulfill this commitment, which we will be building upon in 2025. Our Director of Claims, Mario Brown-Westbrook mentions: “We’re using AI to help with claims handling and safety recommendations in real time. It enables faster claims resolution and improves underwriting decisions.” By combining cutting-edge telematics technology with the expertise of in-house claims professionals specializing in trucking, we’ve turned the Nirvana Claims experience into the highest level of service in the industry.
We’ve streamlined the claims reporting process to make it as convenient as possible. Claims can now be reported in three ways (online-2x faster!, by email, or by phone) and are handled quickly and efficiently with a guaranteed response within 48 business hours. This improvement has resulted in resolution times that are 5x faster!
To keep customers informed, we now provide weekly email updates (sent straight to their email inbox) on the status of any of their open claims. Additionally, both customers and their agent can check claim statuses at any time via the Safety Intelligence Platform or by phone–our in-house claims experts are ready to help at any time.
As fleets increasingly adopt AI-driven tools, they’re seeing benefits in both cost reduction and operational efficiency. For insurance agents, these technologies represent an opportunity to offer more advanced and competitive solutions, positioning their customers for resilience in a rapidly evolving industry.
4. The rise of usage-based insurance (UBI)
Usage-based insurance (UBI) is rapidly gaining traction as fleets seek more flexible pricing models. Instead of fixed monthly premiums, UBI aligns insurance costs directly with fleet activity, charging based on miles driven. This model is especially appealing in a market characterized by fluctuating freight demand and tight margins.
The global UBI market is projected to reach $309.5 billion by 2032, with a CAGR of 20.85%. Small and mid-sized fleets, which often operate on tight budgets, are finding this model particularly valuable. By eliminating costs when trucks are idle, UBI offers a variable expense structure that aligns with revenue.
Rushil explains: “With spot rates down and profitability strained, paying only for the miles you drive is incredibly compelling. This approach allows fleets to treat insurance as a variable cost and adapt to market conditions.”
UBI is not just about cost savings—it’s a reflection of how insurance products are evolving to meet the specific needs of fleets in a dynamic industry.
5. Impact of evolving compliance regulations
Regulatory changes remain a constant factor influencing the trucking industry. A refresh of the Electronic Logging Device (ELD) mandate is anticipated in mid-2025, potentially expanding compliance requirements and introducing new tracking criteria. The ELD mandate, designed to prevent driver fatigue by monitoring hours of service, is likely to evolve to address broader safety and operational concerns.
Our Co-founder & Head of Insurance, Alex Carges advises: “Fleets should prepare now by evaluating their systems. Being proactive about compliance helps avoid disruptions and ensures smooth operations.”
As regulations become more stringent, maintaining up-to-date systems and processes will be essential. Fleets that anticipate these changes and adapt early will position themselves for success, while agents who stay informed can help their customers navigate compliance with minimal disruption.
Transforming challenges into opportunities with the right partner
As the trends in the insurance industry continue to evolve, fleets need more than an insurance carrier—they need an insurance partner committed to their success.
Insurers that embrace modern technologies, usage-based pricing, speedy telematics powered claims resolutions, and artificial intelligence driven safety insights are uniquely positioned to help fleets navigate the trucking demands of 2025.
For insurance agents, these innovative solutions represent a chance to differentiate themselves in a competitive market. By offering insurance products that address cost, savings, and safety, agents can strengthen relationships with their clients while helping them adapt to a modern commercial insurance landscape.
To learn more about telematics-powered fleet insurance, visit: nirvanatech.com
As 2025 unfolds, the trucking industry is being shaped by a convergence of trends that reflect both ongoing challenges and transformative opportunities. These five key developments are not just shaping the present but also redefining the future of trucking, offering insights into how fleets and insurance agents can adapt to an evolving landscape.
1. Rising costs mitigated by the push for telematics-powered insurance
Fleet insurance costs have been climbing steadily, with rates increasing by an average of 9.28% in 2024. This trend has been fueled by inflationary pressures, nuclear verdicts, and an increasingly litigious environment where commercial vehicle accidents are targeted for legal exploitation. Traditional insurance models often group fleets into broad risk categories, leading to rate hikes that don’t always reflect a fleet’s actual safety performance.
Telematics-based underwriting is transforming the industry by using real-time data to assess risk more accurately. Metrics such as speed, braking patterns, and hours of service (HOS) allow insurers to offer fairer pricing. For example, fleets with strong safety records can qualify for discounts, while higher-risk profiles are incentivized to improve. This trend is redefining how risk is assessed and priced, creating opportunities for fleets to control costs through improved safety.
According to our Co-founder and CEO, Rushil Goel: “Insurance rates are going up, but telematics-driven underwriting allows fleets to take advantage of their driving behavior. If you even get 10% safer, your costs stay flat or even go down.”
2. Growing adoption of in-cab cameras
Video telematics is becoming a cornerstone of modern fleet operations, with its adoption expected to grow at a compound annual growth rate (CAGR) of 19.0% in North America, reaching 11.7 million installed systems by 2028. These systems, which include dashcams and side cameras, provide critical insights into driver behavior and operational safety.
Nirvana is seeing approximately 70% of our fleet customers already have cameras installed. These tools prevent accidents, provide a single source of truth for claims, and help coach drivers toward safer behavior.
The data captured by video telematics enables fleets to identify high-risk behaviors, such as hard braking or tailgating, and address them through targeted coaching. Insurance carriers are leveraging this technology to enhance underwriting accuracy and expedite claims processing. By reducing liability and streamlining operations, video telematics is driving significant operational improvements across the industry.
3. The expanding role of AI in insurance
Artificial intelligence is emerging as a transformative force in the trucking industry, with applications ranging from risk assessment and dynamic pricing to claims handling and safety interventions. By automating data analysis, AI enables fleets to identify trends, streamline processes, and focus resources on high-impact areas.
We are committed to delivering an exceptional claims experience to our customers. In 2024, we made significant advancements to fulfill this commitment, which we will be building upon in 2025. Our Director of Claims, Mario Brown-Westbrook mentions: “We’re using AI to help with claims handling and safety recommendations in real time. It enables faster claims resolution and improves underwriting decisions.” By combining cutting-edge telematics technology with the expertise of in-house claims professionals specializing in trucking, we’ve turned the Nirvana Claims experience into the highest level of service in the industry.
We’ve streamlined the claims reporting process to make it as convenient as possible. Claims can now be reported in three ways (online-2x faster!, by email, or by phone) and are handled quickly and efficiently with a guaranteed response within 48 business hours. This improvement has resulted in resolution times that are 5x faster!
To keep customers informed, we now provide weekly email updates (sent straight to their email inbox) on the status of any of their open claims. Additionally, both customers and their agent can check claim statuses at any time via the Safety Intelligence Platform or by phone–our in-house claims experts are ready to help at any time.
As fleets increasingly adopt AI-driven tools, they’re seeing benefits in both cost reduction and operational efficiency. For insurance agents, these technologies represent an opportunity to offer more advanced and competitive solutions, positioning their customers for resilience in a rapidly evolving industry.
4. The rise of usage-based insurance (UBI)
Usage-based insurance (UBI) is rapidly gaining traction as fleets seek more flexible pricing models. Instead of fixed monthly premiums, UBI aligns insurance costs directly with fleet activity, charging based on miles driven. This model is especially appealing in a market characterized by fluctuating freight demand and tight margins.
The global UBI market is projected to reach $309.5 billion by 2032, with a CAGR of 20.85%. Small and mid-sized fleets, which often operate on tight budgets, are finding this model particularly valuable. By eliminating costs when trucks are idle, UBI offers a variable expense structure that aligns with revenue.
Rushil explains: “With spot rates down and profitability strained, paying only for the miles you drive is incredibly compelling. This approach allows fleets to treat insurance as a variable cost and adapt to market conditions.”
UBI is not just about cost savings—it’s a reflection of how insurance products are evolving to meet the specific needs of fleets in a dynamic industry.
5. Impact of evolving compliance regulations
Regulatory changes remain a constant factor influencing the trucking industry. A refresh of the Electronic Logging Device (ELD) mandate is anticipated in mid-2025, potentially expanding compliance requirements and introducing new tracking criteria. The ELD mandate, designed to prevent driver fatigue by monitoring hours of service, is likely to evolve to address broader safety and operational concerns.
Our Co-founder & Head of Insurance, Alex Carges advises: “Fleets should prepare now by evaluating their systems. Being proactive about compliance helps avoid disruptions and ensures smooth operations.”
As regulations become more stringent, maintaining up-to-date systems and processes will be essential. Fleets that anticipate these changes and adapt early will position themselves for success, while agents who stay informed can help their customers navigate compliance with minimal disruption.
Transforming challenges into opportunities with the right partner
As the trends in the insurance industry continue to evolve, fleets need more than an insurance carrier—they need an insurance partner committed to their success.
Insurers that embrace modern technologies, usage-based pricing, speedy telematics powered claims resolutions, and artificial intelligence driven safety insights are uniquely positioned to help fleets navigate the trucking demands of 2025.
For insurance agents, these innovative solutions represent a chance to differentiate themselves in a competitive market. By offering insurance products that address cost, savings, and safety, agents can strengthen relationships with their clients while helping them adapt to a modern commercial insurance landscape.
To learn more about telematics-powered fleet insurance, visit: nirvanatech.com
