So we’re — this next quarter, we’ll put out our guidance for 2024. And I’m grateful that we can do that in three months, and I don’t have to do it today, because a lot could change, frankly in the next three months. Now our posture in terms of running the business is, hey, we’re going to — we’re heads-down, working hard as if nothing is going to change and nothing is going to be given to us and we’re not going to have any wind at our back. We’re just not going to wait for that to happen to try and control what we can control. But we will be prepared to move when the market — when the wind blows, we’ll be prepared. So it’s the best I could answer that right now for you, Amit.
Amit Mehrotra: Yes, that’s very fair. Thank you, wish you guys the best. Thank you.
David Jackson: Thank you.
Adam Miller: Thanks, Amit.
Operator: Your next question comes from the line of Bascome Majors from Susquehanna. Your line is open.
Bascome Majors: Yes. Going back to the insurance business and the boom-and-bust cycle you’ve managed through there. What have you learned from that both about how you would incubate a future business at Knight and grow it internally? And also just dealing with some of your small trucking competitors, as customers there, what have you learned about the market that will help you manage cyclically going forward? Thank you.
Adam Miller: Well, Bascome a few things. For one, it’s — it is difficult to find small carriers who care about safety, the way that we do and are willing to do things to change behavior such as, you know, hair follicle, drug testing, to have cameras in the vehicles that track your scoring that then indicate whether you’re a safe driver or not. It’s difficult to find a carrier who is willing to do that at a consistent level. And that’s part of the underwriting process and I think what we found is we had to be more disciplined on the compliance around some of those factors. I think we also found that you know, this is a difficult environment and so one of the first bills that may not get paid maybe the monthly insurance bill.
And so, we have to do a better job getting, you know, probably a couple of months or some larger deposit on the front end to protect ourselves from any bad debt that we may incur, should you have a carrier that doesn’t make payments appropriately. And I think we weren’t quite a bit of just how we manage claims, what the development looks like and when, when you know that and understand it and understand how different it is, then company drivers or owner-operators that operate for us, we can be more effective at how we price that business. So I think we made some — I think some missteps in terms of assuming that claims develop the same way they do with our own business and maybe price the business as effectively as we should. So we’re in the process of moving pricing up as quickly as we can.
And that affects any renewals, we’re not writing any new business now until we can really understand what the right mix of carrier is and what the underwriting qualification should be and will determine to that process, whether we think it’s a business that we can grow and develop profitably. So there’s still more that we’re working through in this process, it’s relatively new to us. And — hey, we’re again open to a lot of different approaches to make this business work if we can.
