In Depth: Haulage - a market in flux

haulage

  • The cost of larger claims is challenging for haulage space
  • Double figure rate increases becoming the norm at renewal
  • With a considerable number of drivers employed in Europe, Brexit referendum likely to impact haulage industry 

In Depth: Haulage - a market in flux

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In Depth: Haulage - a market in flux

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The haulage industry poses many challenges to insurers, including a high volume of claims and a competitive rating environment.

But for those who are willing to face the risks and understand the market, it is an attractive and growing space to be involved in.

On 29 March, Unicorn Underwriting became the latest entrant to the haulage insurance market.

US-based insurance distributor Amwins Group and Berkshire International Insurance entered into a partnership to target the motor fleet business via the London-based managing general agent.

Unicorn said it will initially focus on areas such as passenger and road transport industries based in the UK, it is understood haulage will be among the commercial fleet business it will write.

However, Unicorn’s emergence onto the scene is by no means an indication of an easy market to be in for insurers.

Hardening attitudes
Steve Green, director of Anthony Jones Insurance Brokers, points out signs of toughening up: “Attitudes appear to be hardening and what we see are premiums rising again after reductions or at least stability in prices as insurers look to improve profitability and reflect rising accident rates.”

He added combined operating ratios are “deteriorating” within the commercial motor class and the frequency and cost of motor claims on the rise on more crowded roads.

“When claims inflation exceeds rate increases then you know that premiums are heading up. These are the two main reasons why insurers are reluctant to be as enthusiastic,” Green said.

Axa Insurance technical director David Williams, said: “There are some massive claims in haulage, which is why risk management is so important.

“The industry inevitably produces bodily injury claims, which can be quite expensive, both from a motor perspective but also from employers’ and public liability classes.”

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