Cost of Insurance

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.