The Federal Motor Carrier Safety Administration's 2010 Comprehensive Safety Analysis regulation, which rates and monitors drivers and carriers while aiming to improve commercial motor vehicle safety, goes into effect today. Among additional outcomes, this regulation from the U.S. Department of Transportation division committed to preventing commercial motor vehicle-related fatalities and injuries now makes trucking safety scores publicly available to shippers, insurance underwriters, competitors and claimant attorneys.
As part of the regulation, the FMCSA introduces a safety measurement system for carriers and drivers that uses fleet data from roadside inspections, including all safety-based violations, state-reported crashes and the federal motor carrier census. This data is applied against seven behavior analysis safety improvement categories and is made public.
Aon is assisting trucking carriers to prepare for and comply with the CSA 2010 regulation through its CSA readiness assessment. This proprietary assessment reviews and scores carriers’ current FMCSA compliance programs and highlights problem areas. Aon’s team of trucking risk experts then assists carriers to create informed strategies designed to improve safety and help maintain proper CSA 2010 scores.
“This new regulation is much tougher than previous safety ranking programs. In fact, carriers that have maintained quality scores using the previous system, SafeStat, will find themselves deficient under CSA 2010," said David Mitchell of Aon Risk Solutions' Trucking practice. “It is vital that carriers review their current compliance programs so that they understand the impact of this new regulation and can make adjustments that mitigate risk and save money in the long run.”
Poor CSA 2010 scores can lead to:
• Loss of business: Shippers can easily check carriers’ scores and may opt to send their business elsewhere.
• Adverse reactions from insurance underwriters: Underwriters have tracked safety compliance scores for years and will use CSA 2010 scores when determining coverage and pricing. Poor scores can result in less subjective discounts for a fleet as well as higher premiums.
• Rising claims settlement values: Likely affecting larger disputed claims, where a carrier is not ready to concede that its driver made an operating error, these claims may cost millions of dollars to settle.
• Difficulty recruiting drivers: Drivers are expected to use CSA 2010 scores as a deciding factor in their fleet selection.
• FMCSA intervention: The FMCSA will apply an intervention process that includes phone or written reprimands demanding action plans. More intervention is possible when a fleet has a deficient score.
“Now is the time to make certain that your company’s scores are at least 10 points better than the intervention levels for deficient performance,” said Nancy Bendickson, Aon Risk Solutions' Global Risk Consulting practice. “Aon specialists can assist carriers to develop effective fleet safety management systems that demonstrate financial and operational value.”