Cargo theft surge is tightening underwriting standards for Canadian trucking fleets

A dramatic escalation in cargo theft across Canada is forcing insurance providers to implement more rigorous underwriting standards and scrutiny for trucking operations. Data indicates that truck and trailer thefts nearly doubled in 2025, while recovery rates have plummeted as organized criminal networks shift their focus toward high-value freight. For the trucking sector, this environment necessitates a transition from treating insurance as an administrative task to a strategic operational priority focused on documented security and data-driven risk management.

Data from Équité Association and Verisk CargoNet reveals a significant surge in cargo crime, with Canadian truck thefts rising from 591 to 984 and trailer thefts increasing from 383 to 638 during the first three quarters of 2025. Total estimated losses across the U.S. and Canada jumped 60% to nearly $725 million, while the average value per theft rose 36% to $273,990. This financial impact is compounded by deteriorating recovery rates; national cargo recovery fell to 9% in 2025, and trailer recovery dropped from 64% to 44%. In Ontario alone, approximately 1,601 thefts were recorded, with a heavy concentration in the Greater Toronto Area and Peel Region.

The nature of these crimes is evolving from physical theft to sophisticated digital fraud, specifically fraudulent pickups where criminals impersonate legitimate carriers. Maria-Christina Sorbo-Mayrand of Miller Thomson and Mike Grabovica of Birdseye Security Solutions highlighted that criminal networks are now using phishing and remote access tools to harvest business credentials and compromise carrier verification systems. This systematic methodology allows organized crime groups to redirect capacity toward cargo and commercial vehicle crime, evidenced by a 72% year-on-year increase in vehicle finance fraud detected at the ports of Montreal and Halifax.

In response to the rising claims environment, insurers are demanding that carriers provide proof of active security measures rather than just the existence of technology. Underwriting now requires documentation of real-time tracking, surveillance infrastructure, and formal policies that are strictly followed by employees and subcontractors. Sorbo-Mayrand warned that carriers failing to demonstrate the active use of telematics and refrigerated monitoring data face harder placements and tighter terms. Furthermore, subcontracted loads and unauthorized double-brokering have become major sources of denied claims, prompting experts to recommend more rigorous carrier-vetting procedures and service agreements that explicitly prohibit unauthorized freight transfers.