Central Analysis Bureau (CAB)

What is the Central Analysis Bureau (CAB)?

The Central Analysis Bureau (CAB) is a third-party organization that collects, analyzes, and distributes data on motor carriers operating in the United States. CAB’s platform provides insurers, brokers, and other industry stakeholders with detailed insights into a trucking company’s operations, safety performance, and compliance history.

CAB is not a regulatory body; instead, it compiles data from various sources, including the Federal Motor Carrier Safety Administration (FMCSA), and presents it in an easily digestible format. Insurers rely heavily on CAB reports to determine the risks associated with insuring a trucking company.

 
CAB Regulations and Data Sources
CAB itself does not issue regulations but compiles data from regulatory agencies like the FMCSA. The data it provides is based on compliance with federal and state trucking regulations.

Key Data Sources Used by CAB:
FMCSA Data: Safety and Fitness Electronic Records (SAFER):Includes information on inspections, crashes, and violations.

Compliance, Safety, Accountability (CSA) Scores:CAB integrates CSA scores, which measure a carrier’s safety performance in areas like unsafe driving, hours-of-service compliance, and vehicle maintenance.

Safety Measurement System (SMS):Tracks violations and safety-related events to identify high-risk carriers.

Department of Transportation (DOT) Records: Includes DOT registration details, operating authority, and compliance with federal regulations.

Inspection and Violation Data: CAB aggregates inspection results, including out-of-service violations, to evaluate a carrier’s operational safety.

Crash Data: Includes crash reports and severity, which are critical in assessing risk.

Insurance Filings: CAB monitors filings for proof of insurance, including Form BMC-91 or BMC-91X, which are required by the FMCSA.
 
CAB’s Role in Trucking Insurance
CAB provides insurers with a CAB Report, which is a comprehensive risk assessment tool used to evaluate trucking companies. This report significantly impacts insurance underwriting and pricing.

Key Components of a CAB Report:
BASIC Scores: Derived from the FMCSA’s CSA program, these scores evaluate a carrier’s safety performance in seven categories:Unsafe Driving
Hours-of-Service (HOS) Compliance
Driver Fitness
Controlled Substances/Alcohol
Vehicle Maintenance
Hazardous Materials Compliance
Crash Indicator
Poor BASIC scores indicate higher risk and lead to higher insurance premiums.

Inspection History: The report includes details on roadside inspections, violations, and out-of-service rates. High out-of-service rates signal poor maintenance or operational practices, increasing premiums.

Crash History: Insurers assess the frequency and severity of crashes. A history of preventable crashes results in higher insurance costs.

Carrier Profile: Includes operational details like fleet size, geographic scope, and type of cargo hauled. High-risk operations (e.g., long-haul trucking, hazardous materials) lead to increased premiums.

Safety Trends: CAB analyzes trends over time, such as whether a carrier’s safety performance is improving or deteriorating. Consistent improvement can help lower premiums.

Driver Data: Includes information on driver violations and compliance. A fleet with inexperienced or high-risk drivers will face higher premiums.
 
How CAB Affects Trucking Insurance Prices
Risk Assessment: Insurers use CAB reports to evaluate the risk of insuring a trucking company. Higher risk, as indicated by poor safety scores, frequent violations, or crash history, results in higher premiums.

Premium Determination: CAB data is a critical factor in underwriting decisions. Insurers use it to set premiums based on the likelihood of claims:Low-Risk Carriers: Clean safety records, low out-of-service rates, and no recent crashes lead to lower premiums.
High-Risk Carriers: Poor safety performance, frequent violations, and crash history lead to higher premiums or denial of coverage.

Policy Terms: CAB data influences not just premiums but also policy terms, such as deductibles, coverage limits, and exclusions. High-risk carriers may face stricter terms or higher deductibles.

Carrier Reputation: Shippers and brokers also use CAB reports to evaluate carriers. Poor CAB scores can limit business opportunities, indirectly impacting a carrier’s revenue and ability to afford insurance.
 
How Truckers Can Improve Their CAB Scores and Lower Insurance Costs Focus on Safety: Implement a robust safety program to reduce violations and crashes.
Conduct regular safety training for drivers, emphasizing compliance with FMCSA regulations.

Maintain Vehicles: Perform routine maintenance to ensure vehicles pass inspections and avoid out-of-service violations.

Monitor CSA Scores: Regularly review CSA scores and address areas of concern. Focus on improving BASIC categories where scores are high.

Hire Qualified Drivers: Employ experienced drivers with clean records. Conduct thorough background checks and provide ongoing training.

Invest in Technology: Use telematics and electronic logging devices (ELDs) to monitor driver behavior, track HOS compliance, and improve safety.

Review CAB Reports: Obtain your CAB report and review it for accuracy. Dispute any incorrect data with the FMCSA to ensure your scores reflect your actual performance.

Reduce Crash Frequency: Investigate and address the root causes of crashes. Implement policies to prevent common issues like distracted driving or fatigue.

Work with a Safety Consultant: Partner with a safety consultant to identify risk areas and develop strategies to improve compliance and safety performance.

Communicate with Insurers: Share improvement plans with insurers to demonstrate your commitment to safety. This can help negotiate better rates.
 
Key Takeaways
CAB reports are a critical tool for insurers to assess risk and set trucking insurance premiums.
Factors like safety scores, inspection history, and crash data directly influence insurance costs.
Trucking companies can lower their premiums by improving safety performance, maintaining compliance, and addressing issues highlighted in CAB reports.
Proactive measures, such as hiring qualified drivers, maintaining vehicles, and using technology, can improve CAB scores and reduce insurance costs.
By understanding how CAB data impacts insurance pricing and taking steps to improve performance, trucking companies can secure more affordable insurance and build a stronger reputation in the industry.