Road transport businesses should prepare for significant insurance premium increases this year, as accounting consultancy KPMG reports a surge in gross written premiums and in the next 12 months.
Road transport businesses should brace themselves for big rises in insurance premiums this year, the National Road Transport Association (NatRoad) warned today.
NatRoad says the latest quarterly update on the insurance sector by KPMG has revealed gross written premium surged by 10.2 percent in the 12 months to March.
Underwriting profits also rose 12.4 percent but were offset by net claims costs that were 36.5 percent higher than March last year.
“KPMG’s advice is that premiums will generally rise by at least 10 percent in the next 12 months and possibly more for small businesses,” NatRoad CEO Warren Clark says.
“Last year’s severe flooding cost Australian insurers at least $5.65 billion which makes it the costliest natural disaster in our recorded history.”
Clark says NatRoad’s advice was to shop around and speak to a broker before making rash decisions – and that is mirrored by one of its commercial partners, NTI.
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Mike Edmonds, Executive General Manager – Commercial at NTI, says cost increases will vary depending on the class of insurance and the risk.
“Increased reinsurance costs due to international and national events, combined with inflation and increased asset values, will have a natural flow on to insurance costs,” Edmonds says.
“NTI recommends seeking advice from your trusted insurance advisor to ensure you get the best advice, and the right cover, for your business.
As a NatRoad Platinum Partner, NTI provides additional insurance cover benefits to NatRoad members.