There is no doubt that the commercial motor market has hardened and brokers will be presenting premium increases to clients.
The following tips will help in preparing your renewal report or client visit.
- Early communication - don’t be delivering surprise bad news only a week or two before due date.
- Year on year comparisons - make sure the client knows what the per unit premium cost or % rate for the last few years (ideally 5) has been - it had to go up at some stage!
- Understand any change in the make of vehicles in the fleet. Are expensive to fix European brands becoming much more prevalent in your client’s fleet for example?
- The sniff tests? - how much should you really pay to insure a $50,000 Ute or $100,000 Rigid Truck? It’s a lot more than $750 & $1500.
- Should check quotes be obtained, even if the premium is coming off a very low expiring base?
- Offer alternatives - options with different excesses may be worth considering.
- The client’s Loss History is the key driver of premiums and analysis of current data for the last few policy years is crucial. Remember to factor in yearly fleet number size when considering loss trends.
- Understand what external factors are pushing up premiums across the board, that your client will have to share -
- Weather events - floods, cyclone, fires
- More congested roads
- Large infrastructure exposures – such as tunnel accidents
- Safer, yet- more expensive technology in vehicles
- Replacement of, instead of repairing vehicle components
Also see this link to Broking commercial motor in a hardening market
Now more than ever the Fleetsure offering of consistent accessible expertise is of value to you and your client.
Pick up the phone to our underwriters now!