Fleet operators in complex sectors continue to face challenges securing competitive insurance cover as mainstream insurers remain cautious around higher risk fleet exposures. That’s according to new research, which found haulage operators, waste fleets, and hazardous goods carriage businesses are increasingly relying on specialist insurers.
Based on polling of brokers across the commercial motor insurance market, waste, hazardous goods, and recycling fleets were identified as the hardest segment to place due to limited market appetite, with 71% of brokers citing this as the main challenge.
Specialist insurers are helping operators secure cover where mainstream insurers are less willing to provide terms. More than seven-in-10 brokers surveyed said specialist insurers, known as managing general agents (MGAs), had either sometimes or often provided the only viable quote available for a niche commercial motor risk during the past six months.
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This trend is driven by the fact that specialist MGAs can offer greater underwriting flexibility, sector knowledge, and operational understanding than larger composite insurers focused across multiple lines of business. Direct Commercial notes that specialist MGAs are becoming critical providers within the commercial motor sector due to their dedicated focus on haulage risks.
According to the research, challenges still exist in parts of the commercial motor market, particularly in sectors with higher claims severity or more complex operational risks. Joe Hantson, deputy CEO at Direct Commercial, explained that the research highlights the importance of specialist MGAs in helping brokers and fleet operators secure viable cover where mainstream appetite may be more limited.
The findings also reflect how claims severity, repair inflation, and operational complexity continue to put pressure on large, composite insurer appetite across parts of the fleet market. As a result, specialist insurers are playing a growing role in keeping difficult or specialist fleets insured and operational.
It’s clear that the commercial motor insurance market is undergoing significant changes, with specialist insurers stepping in to fill the gap left by mainstream insurers. This shift is likely driven by the need for more tailored and flexible insurance solutions that can accommodate the unique risks and challenges faced by fleet operators in complex sectors.
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They are well-positioned to provide these tailored solutions, thanks to their dedicated focus on fleet and haulage risks. By offering greater underwriting flexibility, sector knowledge, and operational understanding, specialist MGAs can help fleet operators secure the cover they need to operate effectively.
The commercial motor insurance market continues to evolve. Specialist insurers will play an increasingly important role in providing insurance solutions for high-risk fleets. With their ability to offer tailored and flexible solutions, specialist MGAs are helping to fill the gap left by mainstream insurers and keep difficult or specialist fleets insured and operational.
Specialist MGAs are critical.
