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How Brokers Can Help Motor Fleet Managers Stabilise Their Insurance Costs in 2024

How Brokers Can Help Motor Fleet Managers Stabilise Their Insurance Costs in 2024

We’re in no doubt that motor fleet insurance premium increases are an all too familiar story when speaking to customers with fleets.

Several factors have contributed to these continual increases:

  • Fleet Utilisation: Timely reporting expedites repairs and maintenance. It ensures vehicles are on the road faster and can contribute to fleet productivity.
  • Post-Brexit Trade: The complications of import and export, especially since 80% of car parts are imported from Europe, have exacerbated the cost pressures.
  • Lack of Replacement Vehicles: With the prices of new and used vehicles soaring, courtesy car costs have followed suit, further driving up the average costs associated with claims.
  • Prolonged Pandemic Effects: The COVID lockdowns, particularly in China, have led to significant delays in parts supply, affecting nearly half of the repair work.
  • Global Conflicts: Events such as the war in Ukraine have disrupted the supply chain for crucial manufacturing components like neon for semiconductors.
  • Economic Factors: The depreciation of the pound and rising energy prices have added additional layers of cost to the repair process.
  • Fraud: An increase in both first and third party fraud has also been observed, reflecting the broader economic challenges.
  • Rising Costs of Injury & Care: With legal guidelines and manpower shortages, the costs associated with injuries and care have also seen a rise.

In anticipation of a projected 12% inflation rate over the coming two years, it becomes crucial for fleets and brokers to collaborate with an insurance provider capable of offering effective strategies to manage insurance expenses.

Actionable Tips for Brokers to Help Customers Reduce Fleet Premiums in 2024

Brokers play a critical role in helping fleets stabilise insurance costs. Here’s how you can help clients minimise further premium increases in 2024.

1. Guide Clients to access our Digital Portal: Show your clients how to effectively use Flock’s digital portal for managing their insurance policies, ensuring they can easily handle policy administration.

2. Promote Personalised Safety Insights: Encourage your clients to engage in Flock’s personalised Safety Insights to spot trends and identify poor drivers.

3. Monitor and Address Poor Driving: Advise fleet managers to regularly monitor driving behaviours through telematics and the Flock Portal. This enables timely interventions to prevent performance deterioration.

4. Highlight the additional benefits of Flock’s Product: Explain Flock’s unique approach, emphasising premium rebates for fleet safety, real-time access to fleet statistics, and streamlined digital policy management.

5. Encourage Participation in Safety and Claims Insight Sessions: Actively recommend Flock’s insight sessions to your clients to support them with managing their risk.

6. Highlight the impact of Time to Report and the tools to keep this down: inform clients of the impact that Time to Report has on claims costs and longer-term premium. Work with fleet managers on ensuring drivers always report incidents and provide them the tools to do so.

7. Regularly Review Fleet Claims Performance Data: Use Flock’s Claims Insights to assist clients in reviewing their claims performance to help drive longer-term premium stability.

By following these steps, you’ll be well positioned to help your clients leverage Flock’s innovative approach to fleet insurance, ultimately leading to safer fleets and more stable premiums.

Running a fleet has never been more expensive. Keep an eye out for the next part of our price stabilisation series where we look more closely at the power of reporting incidents promptly, and how this can help to sustain premiums.

If you’re a broker and don’t already trade with Flock please click here.