The downward trend of insurance rates for fleets may soon be coming to an end, as competition wanes and remaining insurers push for higher premiums to make up for investment losses.
Industry experts say the days of double-digit annual rate decreases are behind us, and that carriers accustomed to receiving these reductions in recent years should brace themselves. A recent survey of insurance carriers nationwide has most analysts predicting at least “moderate rate increases” over the next year, as insurance companies test the waters regarding increased premiums.
The same survey pointed to a slow down in decreases, if not an actual increase, in a wide range of insurance coverage, including everything from accident liability to worker’s compensation and cargo coverage. That trend was even more pronounced for for firm’s which currently pay less than $250,000 in premiums annually.
The largest reason for these anticipated changes in the market is the nearly across-the-board reduction in reserves needed to cover expenses for insurance firms. This evidence is supported by a 10% decrease in policy holders’ surplus from 2007 to 2008, with commercial auto insurance making up nearly 5.5% of the total policies held.
Learn how Diligent Delivery Systems – with cost-saving solutions for personnel and transportation costs – can help your company prepare for these and other rising costs.
