Road transport businesses should brace themselves for big rises in insurance premiums this year, the National Road Transport Association warned today.
NatRoad says the latest quarterly update on the insurance sector by KPMG has revealed gross written premium surged by 10.2 per cent in the 12 months to March.
Underwriting profits also rose 12.4 per cent but were offset by net claims costs that were 36.5 per cent higher than March last year.
“KPMG’s advice is that premiums will generally rise by at least 10 per cent in the next 12 months and possibly more for small businesses,” said NatRoad CEO Warren Clark.
“Last year’s severe flooding cost Australian insurers at least $5.65 billion which makes it the costliest natural disaster in our recorded history.”
Clark said NatRoad’s advice was to shop around and speak to a broker before making rash decisions – and that is mirrored by one of its commercial partners, NTI.
Mike Edmonds, Executive General Manager – Commercial at NTI, said cost increases will vary depending on the class of insurance and the risk.
“Increased reinsurance costs due to international and national events, combined with inflation and increased asset values, will have a natural flow on to insurance costs,” he said.
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