Last month, Leeds-based commercial insurance broker Gauntlet Group
posted a record income of £28 million – a 34% rise year-on-year attributed to growth in its motor fleet account, which spans bus and coach, haulage, and general motor fleet business.
The impressive results, which are for the year ending March 31, were described as “extremely satisfying,” by the group’s MD. But while it managed to carve out a successful year of business, the firm has revealed the extent of the impact of Ogden, and says there are more rate increases to come.
The personal injury discount rate change, which sparked uproar in the industry, is another blow for fleet operators in what is already a challenging market, Ian McCarron, director and head of Gauntlet’s motor fleet and commercial insurance divisions, told
Insurance Business.
“The Ogden Rate amendment has impacted on our business largely through its effect on the many transport operators that Gauntlet has as clients,” he explained. “Operators have continued to see premium increases at renewal over the last few years, as well as IPT rate increases, which will have doubled from 6% to 12% since November 2015.”
Premium rates continue to be “under pressure,” he said, with increasing claims costs for both injury and damage, given the technical specifications of newer vehicles. “Moving forwards, we will continue to see rating increases as a result of Ogden, and this will become even more significant as motor insurers review their re-insurance programmes.”
Recent terrorist attacks have impacted the firm too, as the self-drive hire insurance market has come under the spotlight.
“We are likely to see insurers less hungry to work in certain industry sectors, or even withdraw from them,” McCarron said of the lasting impact of the events.
But despite the challenges, there is a silver lining for Gauntlet.
“We are used to managing risk and negotiating the most competitive arrangements for our clients,” McCarron commented. “The Ogden Rate amendment re-emphasises the need for clients to use the services of a good quality motor fleet insurance broker, focusing on all aspects of managing the risk and not just risk transfer, in the form of insurance. For Gauntlet, it’s business as usual, as we look to work with clients who favour long-term sustainable advice and control.”
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