Regulatory scrutiny of commercial driver training and a wave of insurance brokerage dealmaking are converging on the trucking sector, with a federal review putting thousands of CDL programs at risk while multiple firms expand transportation-focused insurance capabilities through acquisitions and partnerships.
DOT review puts CDL training programs under pressure
Nearly 44% of the 16,000 truck-driving programs listed nationwide could be forced to close if they lose students after a U.S. Department of Transportation review found potential noncompliance with federal requirements. The potential shake-up signals significant risk to driver-training capacity and carrier recruiting pipelines if large numbers of programs lose accreditation.
The heightened scrutiny comes amid stepped-up enforcement across the industry. Over the past two years, DOT roadside inspections recorded more than 7,000 drug violations.
Some fleets are already feeling strain tied to compliance concerns. “As a result many of [our] drivers … are just afraid to go to some of these other states where they might get harassed,” said Dave Atwal, owner of Diamond Transportation in Lodi, California. He added that the company has reassigned some drivers to in-state routes but has lost more than 40 drivers who either left the job or were unable to renew their licenses despite years of safe driving.
Insurance consolidation accelerates in transportation
- The Baldwin Group said it will acquire rival insurance broker CAC Group in a $1.03 billion cash-and-stock deal, adding to an active period of mergers as competition intensifies for scale and specialty expertise.
- EPIC announced an expansion of its Transportation & Logistics practice connected to Sentry Transportation’s direct-writing operation, reflecting continued investment in trucking-focused risk advisory and placement capabilities.
- Afore Insurance Services, a consolidated acquisition platform for independent insurance agencies, reported more than 50 agency acquisitions and over 20 offices nationwide.
- In Hawaii, Atlas Insurance Agency, Pyramid Insurance Centre, and IC International collectively represent a leading brokerage presence, providing insurance solutions to businesses and individuals statewide with niche specializations in municipality, transportation, and hospitality.
- An acquisition of 3DI will bring its nine-person team into Partners&, establishing the group’s presence as a Lloyd’s broker for the first time and expanding complex risk and specialty placement capabilities.
Valuations for brokerages remain elevated, particularly for firms with strong growth, specialty practices, and cross-sell potential. With a shrinking pool of targets, prices may trend higher for agencies that fit the profiles favored by large regionals, public brokers, and private equity-backed platforms.
Embedded insurance and shipper tech
Redkik, an embedded software insurance platform, announced a strategic deal with Cargors, a transport-tech platform designed to give shippers more direct control over road freight. The collaboration aims to streamline freight procurement while enabling on-demand cargo insurance at the transaction level.
Industry calls for coordinated solutions
Trade groups and carrier leaders are urging closer coordination among public and private stakeholders as compliance and market shifts unfold. “These common sense reforms are supported by trucking leaders from across America – from the East Coast to the West Coast, from the South to the Upper Midwest,” said Rebecca Oyler, president of the Pennsylvania Motor Truck Association and a member of the TAEC Task Force. “We are calling on the appropriate government agencies and all supply chain partners, from shippers and brokers to insurance companies and trucking fleets, to come together to focus on solutions to these problems.”
As the DOT review advances and insurance consolidation continues, carriers, brokers, and shippers face a fluid operating environment shaped by training capacity, safety enforcement, and evolving risk-transfer options.