Sponsored content: Harry Weeks, senior account handler at Howden, discusses what he’s been seeing in the motor trade insurance space
1. What are the main challenges hitting the commercial motor trade market right now, especially for SMEs?
Fraud within the motor trade industry is always a prominent issue, but in this tough financial climate it’s more rife than ever.
Organised crime groups are targeting SME businesses and selling them vehicles that are not legally theirs to be sold.
These criminals are aware that it can take a week or so for vehicle check systems to be updated, meaning the dealer – despite doing everything they can – may still get caught out, leaving them out of pocket.
Axa’s seen more claims submitted for wrongful conversion in the last three years than they have in the previous ten years combined.
This is why, when it comes to used vehicle sales, we strongly recommend there’s robust cover already in place to protect from the cost of this car crime.
2. How has Howden updated its Road Runner Plus product to support motor trade professionals and help mitigate some of the challenges these clients face?
The Road Runner Plus product has grown with the market over the last 12/15 months, offering new features and benefits that are designed to make the product more desirable for brokers and their clients.
The flexibility of including cover for ‘any employee for business use’ enables the business owner not to be restricted to their limited named drivers, allowing them to operate business more efficiently while providing a smoother service for their customers.
We know that, even for the most experienced and well-connected brokers, securing fair motor trade policies for clients can be a tricky task in this current climate, but those traders you work with that have prior experience, subject to criteria, can be quoted under the Road Runner Plus product.
3. Which motor trade market trends should brokers and their clients be looking out for in the second half of 2024?
With electric vehicles continuing to flood the market and with brands producing EV’s that are suitable for a wide range of budgets, we’re expecting to see this trickle down into the used car market.
We’re beginning to see new business’s specialising in used electric vehicles, consisting of both battery electric vehicles and plug-in hybrids.
Going hand-in-hand with the used EV market, we’re also expecting to see a ‘new generation’ of vehicle technicians exploiting this gap in the market, who specialise in the repair and servicing of the ever-growing market for electric vehicles.
