Premiums for this policy class continue to be driven by fleet size and claims performance. Additional factors such as social inflation, supply chain disruptions, surging vehicle maintenance and repair costs continue to put pressure on insurer pricing.
Advancements in vehicle technology and artificial intelligence (AI) has also attributed to the rise of insurer claim costs with demand for automotive parts adding to global supply chain shortages. Policyholders with deteriorating claims performance should expect to see rate increases up to ten per cent, depending on the type of risk and fleet size. Electing a higher retention or excess structure could alleviate premiums however policyholders considering this option must be prepared and internally resourced to fund and manage claims under insurer deductible.
Appropriate risk management controls should be implemented to assist with mitigating claims as vehicle accidents can expose your business to liability risks, legal expenses, delay costs, and decreased productivity. Strategies which may curb the risk of driver incidents and unlock insurance premium savings include the implementation telematics, driver safety training and educational programmes and the establishment of a driver standard qualification system to vet driver qualifications and ensure drivers have appropriate experience with no violations or unfavourable driving records.
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July 2024 Market Update Overview
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Workplace Risk
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Transaction (M&A) and Contingent Risks
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