Impact felt with ferocity throughout the transportation marketplace
The insurance marketplace has been sending signals that an intense market is coming. Many articles, including my own, have been waving the flag in an effort to forewarn those in the transportation industry that another hard market is imminent and to pay attention to detail. Some took heed to the warnings while others sneered in disbelief.
For some who never invested in safety and compliance the echoes of “it’s too late” became a bitter reality.
The new year in its infancy has already seen insurance premiums forcing carriers out of business due to their past claims history. Unappealing loss history will make the decision process easy for insurance providers not offer renewal terms. With transportation insures trying to correct their poor loss ratio, there is no one volleying to write bad business. Each Insurer is seeking to write good business as new business.
The “safe” carriers in this category (blemished claims history, lack of adherence to safety and compliance) who have been granted terms have felt the financial blow on the insurance premiums as well as terms that were once lenient. Examples of higher deductibles, aggregates on cargo premiums, implementing theft restrictions on cargo and yes, even excluding drivers from being insurable have familiarized themselves once again.
Insurers have captured an abundance of data in their computer systems over the years. Be wary to all the fleets who are “adopting” those whose insurance lapsed because of terms not being offered. Cancellation or non-renewal happened for a reason. Don’t inherit problems unless you can fix them.
For those fleets that renew at the latter part of this year, get the game plan in play if you have not done so already. Once again, have your insurance renewal information available to your Broker well in advance of renewal date. One Insurer needs a minimum of 45 days lead time to compete on NON fleet accounts. This is a sign of the times that safety and compliance and a tight ship is needed to weather the storm ahead.
*First appeared in the March 2018 issue of Ontario Trucking
Linda started her career in the insurance industry in 1979 and gravitated toward the niche market of transportation insurance in 1986. Linda has been active in the transportation community since her beginnings and is a Board Member with the Durham Region Transportation Association. Since 2006, Linda has been contributing relevant industry articles in Ontario Trucking monthly periodicals