Active Motor Fleet Insurance Quote

With the New Year upon us, most but not all insurance companies have now come out fighting for new opportunities such as the fleet insurance market, liability, small to medium enterprise (SME) risks and are looking to explore new markets.

With the atrocious conditions that insurance companies have had to contend with in the taxi insurance market; insurers with vehicle insurance know how, are looking to replace their books with what is perceived to be a more profitable market. Insurers should take note that the very reason taxi insurance became unprofitable was directly due to too many insurers fighting and scrambling for the market share, thereby forcing premiums to a simply unsustainable level. Some of the taxi insurance rates being offered were actually lower than standard car insurance rates.

Insurers, notably HSBC Insurance Company and a few other household name insurers have exited from the taxi insurance market for the time being. But will the same happen with the fleet insurance market? By pulling out of markets, insurers still have to replace these with new ones and it is suspected that fleet insurance may be one of them. This may be good news for buyers of fleet insurance products, but is it? There may be short term rewards to customers as rates, terms and premiums drop but, as the taxi insurance is finding out, the Market will catch a cold and push premiums to, what will then perceived to be draconian percentage increases to recover their losses.

New entrants to the fleet insurance game will hope to gain a share of premiums without any legacy of claims, probably unintentionally push premiums down with the hope of minimal collateral damage. A particular entrant has looked at the fleet insurance market cautiously and is probably right to do so. And what of the investment side of the collected premiums? Can this be offset against discounted or economical underwriting? It was widely presumed almost unanimously that following the Credit Crunch, insurers would have no other option other to actually start making an underwriting profit at source, which has not been the case recently. The early signs are not, apparently.

For 2010, it seems to be business as usual and a continual yo-yoing and cyclical hard and soft Market is still here to stay. Until the next crunch……

For any type of motor fleet insurance quote, contact Active’s commercial insurance department for advice or a quote. Active is the specialist fleet insurance broker for UK businesses and individuals.