Fleet Insurance a sign of the times

Isis Insurance a specialist HGV and fleet insurance broker has noticed a recent article in the industry magazine Insurance Times which highlights some of the issues facing the fleet insurance market.

The article points out that last year’s Department of Transport vehicle licensing statistics showed that the number of company owned cars fell by almost 4.5% while new registrations plunged 21%. The effect of the economic crisis along with the recently announced increase in VAT from next January is likely to ensure that the decline in size of commercial fleets continues.

This comes at a time when most insurers agree that insurance premium rates in the fleet insurance market need to increase to cover ever increasing claims costs.  Claims cost inflation has soared in the past 5 years far outstripping rate rises.

Data monitor estimates that claims inflation is running at around 6% across fleet and commercial insurance, although some insurers suggest it is in double figures, whilst premium rates have increased no more than low single figures.

Bodily injury claims are continuing to rise, and credit hire now accounts for around 10% of premium payments, whereas it used to be no more 2%. There are also a number of upcoming pressures on the sector, such as the recently implemented Ministry of Justice reforms.

The most recent FSA returns show commercial market had combined operating ratios of 110% in 2009.. meaning for every £1 taken in premium £1.10 was paid in costs.

With increased pressure on premium rates choosing a specialist HGV fleet insurance broker like Isis Insurance can help clients to obtain competitive rates from a number of insurance companies. We will search the market for the best premium offer from a number of insurers and look to obtain the best cover and terms available.

In these uncertain times arranging HGV Fleet insurance through Isis Insurance could be a great way to save money and improve your cover.

This entry was posted on Friday, July 30th, 2010 at 11:50 am and is filed under Fleet Insurance, HGV (Haulage/Truck). You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.