Brokers’ Guide To Navigating 2023’s Unprecedented Insurance Rate Surge

Introduction
In the ever-evolving landscape of motor fleet insurance, 2023 stands out as a year marked by significant change. Insurance rates have surged, with a motor insurance market-wide increase of 53.4% over the past 12 months (as reported in the Jeffries Motor Report, August 2023). The month of July alone witnessed a 5.9% rise in average premiums, underscoring the dynamic nature of our industry.

The cause of these increases? A lethal combination of factors, including:

• Keen rates in the market in 2022, priced on covid years’ accident rates
• An increase in claims frequency in 2022, making it the worst loss performing year in a decade
• Claims cost inflation
• Reduced available insurance capacity in the market

As brokers, you’ve been at the forefront of these shifts, and it is important for you to anticipate forthcoming changes and offer proactive solutions to your clients, establishing yourselves as dependable partners for fleets.

Identifying Opportunities Amid Challenges
Here at Flock, we perceive these challenges as opportunities for brokers’ growth and innovation. While the market’s rate strength may sometimes result in difficult conversations with your clients, it also signifies an environment where strategic risk mitigation and claims management solutions can yield substantial price stabilising benefits and added value for your clients. Flock offers a range of strategic solutions, including Telematics subsidies, the utilisation of data in our Safety Insights, and our highly sought-after Safety and Claims Reviews. In the coming weeks we will dive deeper into each of these areas, giving you tools to engage with your clients on value added, price stabilising activities.

Navigating the Firming Market
Rate increases in 2023 present both challenges and opportunities as we enter the last quarter of the year. Many industry experts believe it will have reached its peak by the end of 2023, with the possibility that pricing adjustments made through the year will help the market return to profitability (EY). Brokers can expect renewal pricing in 2024 to at least remain in line with inflation for well performing clients.

What matters most is your approach in this evolving landscape. As brokers, your role is pivotal in helping your clients thrive in this dynamic insurance market. By remaining informed on the reasons rates are increasing, embracing change, and harnessing new technology and insights, you can position yourselves as trusted sources of guidance and support for the years to come.

Stay tuned for further insights and strategies on how to assist your motor fleet clients in navigating current market conditions and stabilising their insurance costs.

Additional resources on UK Motor Insurance Pricing Trends:

• Willis Towers Watson “UK Car Insurance Premiums at All Time High…” July 2023
• EY “UK Motor Insurers Report Worst Performing Year In a Decade…” June 2023
• Reinsurance News “UK Motor Insurance Premiums Increase 5.9% in July…” August 2023