Whilst there are over 2million private cars in the State the insurance premium issues facing the commercial fleet sector are not dissimilar in terms of increased premia, however there is a marked difference when it comes to underwriting and preparing and presenting a fleet insurance policy quotation.
COST OF INSURANCE OVERVIEW
Whilst there are over 2million private cars in the State the insurance premium issues facing the commercial fleet sector are not dissimilar in terms of increased premia, however there is a marked difference when it comes to underwriting and preparing and presenting a fleet insurance policy quotation. Risk management factor should be considered and more pronounced for a fleet policy. It is therefore very important to separate private motor insurance issues from the commercial insurance issues in order to have a more focused review of the commercial motor insurance landscape. The issues faced by commercial fleet operators must be understood to enable a fairer and more sustainable underwriting criterion to be implemented nationwide. It is important to develop a culture whereby the client (fleet operator) understands the criteria for getting the best possible insurance premium and the insurer (both broker and insurance company) are actively engaged in delivering the best possible price for their client. Whilst reference to 44 insurance companies and 5 Lloyds syndicates providing motor insurance on the Irish Market as of November 2017, this is not the case for commercial motor insurance. This space is dominated by Broker arrangements with a small number of insurance companies.
The cost of Insurance and the continual upward spiral of premiums are adding to the pressure on small to medium businesses to stay viable. The cost of insurance represents a material risk to fleet operators in the Haulage and own account sector where margins are tight and the slightest increase in premium can have a major impact on profitability.
- FTA Ireland are pro-active in raising the issues of the cost of insurance and have participated in the Government led Cost of Insurance committees. FTA Ireland are challenging insurance companies to recognise and reward good preforming businesses with competitive and sustainable insurance premiums.
- Tips for our members negotiating insurance renewal:
- Learn negotiate on your insurance policy renewals
- Prepare well in advance – get help if necessary
- Recognise that you must put your best foot forward and present your business as a good risk
- The more information and evidence you have to back up your claims that you do ‘everything right’ the more credibility you will have
- Know your claims experience!
- Be honest.
- Take action on all issues / incidents even if these do not result in an accident – prevention is better than the cure!
- Review the 9 principles of prevention and ask – are we taking these into account in our day to day business at all levels of the organisation including transport?
FTA IRELAND COST OF INSURANCE SURVEY 2018
Just under 70% of respondents have confirmed that their commercial motor insurance premiums have increase in 2018. Approximately 14% of respondents have seen their premium decrease in 2018 with the same proportion seeing no change.