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

Page 1
Page 1

In Depth: Haulage - a market in flux

In Depth: Haulage - a market in flux - Page 2

In Depth: Haulage - a market in flux - Page 3

In Depth: Haulage - a market in flux - Page 4

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.”

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@postonline.co.uk or view our subscription options here: http://subscriptions.postonline.co.uk/subscribe

You are currently unable to copy this content. Please contact info@postonline.co.uk to find out more.

Q&A: Aviva’s Ryan Birbeck and Michael Yabantu

Aviva’s Michael Yabantu, managing director of mid-market, and Ryan Birbeck, broker and client development director, sit down with Insurance Post to talk about the internal changes Aviva has made to make access easier for brokers, what product lines it hopes to explore over the next 12 months, and why the London Market is a “key area” for growth in 2024.

Price of tower block insurance finally slashed

Insurance premiums for leaseholders waiting for combustible material to be removed from their blocks of flats could plummet by up to two thirds following the launch of the Association of British Insurers’ Fire Safety Reinsurance Scheme today (13 March), according to Axa.

You need to sign in to use this feature. If you don’t have an Insurance Post account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here