Insurer appetite exists for business fleets with low accident frequency and positive claims history. To achieve best renewal outcomes, it is vital for businesses with large fleets to implement effective risk management controls such as driver training and assessment programmes. The application of assisted driving technologies and telematics hardware such as sensors and cameras can also serve to evaluate and improve driver behaviour and safety.
Claims inflation, global supply chain disruptions coupled with increased repair and spare parts costs, continue to impact this class of insurance. Electric/hybrid vehicle sales have become increasingly prevalent in recent years however, battery replacement and modern technology services are often more expensive than gas-driven motor units which can pose challenges for insurers due to costly repairs, as well as exposures to increased fire risk from damaged batteries.
New technologies found in vehicles can also have potential exposure related to cyber malware and third-party property damage. As a result, we are observing an uptick of insurers adding Electronic Data Exclusions to commercial motor vehicle renewals.
When assessing and pricing risk, insurers’ rating will remain stable for those businesses with well-performing fleets. Some policyholders may be eligible and rewarded with a partial premium rebate (‘Claims Experience Discount’) in recognition of a positive claim period. Poor-performing risks can expect to see modest increases to renewal terms and, in some cases, modified deductible/retention structures.
Continue reading our full range of market updates here:
January 2024 Market Update Overview
For more in depth market updates by product class, profession and industry, please see our individual reports below:
General Insurance
Financial Lines
Construction
