Market conditions for motor fleet insurance remain consistent with our July update. We observe some consolidation here with major general insurers acquiring insurance divisions from member owned organisations. In time this may have the impact of removing competition and putting pressure on rates for domestic and small commercial fleet arrangements.
Heavy motor and large fleet insurance market
Policyholders qualifying for fleet insurance (10+ units) with low claims activity continue to benefit from relatively stable pricing, with rate reductions available for the strongest performing risks.
Policyholders with adverse claims history are experiencing premium increases; however, insurers are increasingly willing to negotiate and adjust policy structures to mitigate the impact of these premium rises.
Despite easing supply chain conditions and reduced accident frequency driven by technological advancements, claims severity remains elevated. This is largely attributable to high repair costs and extended downtime.
Vehicle technology and risk dynamics
The growing prevalence of electrified powertrains, which power electric and hybrid vehicles, is contributing to increased vehicle weights. The average new vehicle weight is projected to exceed 2,080kg by 2026. This greater mass alters accident dynamics, resulting in more severe impacts even at lower speeds.
Risk management tools
In our last update, we highlighted a number of risk management measures that policyholders should consider to reduce claims activity and severity. We continue to observe the positive impact on loss trends and claims outcomes that the following measures offer:
- GPS tracking to ensure drivers remain on route and to assist with locating stolen vehicles.
- Camera monitoring to assist with recovery of costs from third parties.
- Driver fatigue and distraction management systems to mitigate safety risks.
- Telematics, enhancing fleet efficiency and operational insights.
- Comprehensive driver management – including recruitment, assessment, induction and training. Specific guidance on driver health and safety obligations can be found here.
To assist in expediting the claims process and achieving the maximum policy benefit, policyholders should consider:
- Third party valuation – ensuring fair claims settlements by accurately assessing vehicle value.
- Financial loss protection – which provides funding for temporary replacement vehicle hire during repair periods. See our article here.
Continue reading our full range of market updates:
- Insurance Market Overview: January 2026
- Claims
- Workers Compensation
- Corporate and Multinational Risk
- Construction, Property and Development
- Financial Lines
