Premium increases of up to 20% are on the cards as insurers seek to recoup their losses and return to profitability, according to Chris Reynolds, managing director of BSM Fleet Training. He warned that fleets will have an 'expensive shock' when they renew their policies if they have failed to implement risk management strategies. 'Faced with the option of an unacceptable loss ratio, insurers will reduce their claims exposure through shedding badly performing fleets by implementing punitive increases at renewal,' said Reynolds.
Mark Davy, fleet underwriter with Commercial General Union, confirmed that premium increases were averaging 10% to 15% throughout the industry. 'The signs are that most companies are increasing premiums on risks that are average or poor, and where nothing is being done to improve the risk profile,' he said.
The solution is to implement fleet-wide risk management strategies, according to Philip Lister, Royal & SunAlliance's national commercial motor manager. 'Fleets must try to improve their risk control measures and reduce their accident frequency through driver training and better risk management,' he said.