Insurance Market Update: Motor Fleet and Plant & Equiptment
Q2, 2024
Motor Fleet
Insurer rates are being driven by past policy performances and insurers will review loss performance as far back as 10 years in the current era.
Transport companies with a history of poor claims will invariably face rate increases, or imposed excess conditions, such as Aggregate Deductible/s or higher each and every loss to return profit back to the insurer.
The value of the increase can vary but could be as high as 30 per cent, depending on the specific risk profile and fleet size.
Additional factors such as social inflation, supply chain disruptions, surging vehicle maintenance and repair costs continue to put pressure on insurer pricing. Well performing fleets with vehicle numbers over 50 remain extremely competitive in the market.
Dash cams are significantly impacting motor fleet companies by providing clear, objective evidence in the event of accidents or disputes. This technology helps reduce fraudulent claims, accelerates the claims process, and often results in lower insurance premiums as insurers recognize the reduced risk. Additionally, dash cam footage can be used for driver training, improving safety and further mitigating the likelihood of future claims.
Contractors Plant and Equipment
The Australian insurance market still has a strong appetite, especially for well-managed mobile equipment fleets. There is ample capacity, broad coverage, and preferred rates. Equipment such as cranes and machinery used underground command higher rates, and limited insurer options are available.
However, the return of capacity from Lloyds of London has gradually made pricing more competitive. Investment in risk management remains a priority for policyholders and allows underwriters greater flexibility when determining premiums.
Bailey Reed
Bailey’s expertise includes personal lines, landlord insurance, commercial motor, fleet insurance, and mobile plant and equipment coverage - managing insurance portfolios for clients in freight transport, excavation, and civil construction.
Motor Fleet
Insurer rates are being driven by past policy performances and insurers will review loss performance as far back as 10 years in the current era.
Transport companies with a history of poor claims will invariably face rate increases, or imposed excess conditions, such as Aggregate Deductible/s or higher each and every loss to return profit back to the insurer.
The value of the increase can vary but could be as high as 30 per cent, depending on the specific risk profile and fleet size.
Additional factors such as social inflation, supply chain disruptions, surging vehicle maintenance and repair costs continue to put pressure on insurer pricing. Well performing fleets with vehicle numbers over 50 remain extremely competitive in the market.
Dash cams are significantly impacting motor fleet companies by providing clear, objective evidence in the event of accidents or disputes. This technology helps reduce fraudulent claims, accelerates the claims process, and often results in lower insurance premiums as insurers recognize the reduced risk. Additionally, dash cam footage can be used for driver training, improving safety and further mitigating the likelihood of future claims.
Contractors Plant and Equipment
The Australian insurance market still has a strong appetite, especially for well-managed mobile equipment fleets. There is ample capacity, broad coverage, and preferred rates. Equipment such as cranes and machinery used underground command higher rates, and limited insurer options are available.
However, the return of capacity from Lloyds of London has gradually made pricing more competitive. Investment in risk management remains a priority for policyholders and allows underwriters greater flexibility when determining premiums.
Bailey Reed
Bailey’s expertise includes personal lines, landlord insurance, commercial motor, fleet insurance, and mobile plant and equipment coverage - managing insurance portfolios for clients in freight transport, excavation, and civil construction.
Motor Fleet
Insurer rates are being driven by past policy performances and insurers will review loss performance as far back as 10 years in the current era.
Transport companies with a history of poor claims will invariably face rate increases, or imposed excess conditions, such as Aggregate Deductible/s or higher each and every loss to return profit back to the insurer.
The value of the increase can vary but could be as high as 30 per cent, depending on the specific risk profile and fleet size.
Additional factors such as social inflation, supply chain disruptions, surging vehicle maintenance and repair costs continue to put pressure on insurer pricing. Well performing fleets with vehicle numbers over 50 remain extremely competitive in the market.
Dash cams are significantly impacting motor fleet companies by providing clear, objective evidence in the event of accidents or disputes. This technology helps reduce fraudulent claims, accelerates the claims process, and often results in lower insurance premiums as insurers recognize the reduced risk. Additionally, dash cam footage can be used for driver training, improving safety and further mitigating the likelihood of future claims.
Contractors Plant and Equipment
The Australian insurance market still has a strong appetite, especially for well-managed mobile equipment fleets. There is ample capacity, broad coverage, and preferred rates. Equipment such as cranes and machinery used underground command higher rates, and limited insurer options are available.
However, the return of capacity from Lloyds of London has gradually made pricing more competitive. Investment in risk management remains a priority for policyholders and allows underwriters greater flexibility when determining premiums.
Bailey Reed
Bailey’s expertise includes personal lines, landlord insurance, commercial motor, fleet insurance, and mobile plant and equipment coverage - managing insurance portfolios for clients in freight transport, excavation, and civil construction.
