Over 80% of brokers worried about capacity levels in commercial motor

Brokers are worried about a lack of capacity in the commercial motor market despite most believing the sector will grow in the coming year, according Direct Commercial Limited (DCL).

Figures published by the managing general agent (MGA) yesterday (26 September 2023) showed that 75% of brokers saw an increase in commercial motor business in the last year, while 90% felt confident of growth continuing into 2024.

However, the data also showed that 83% of brokers felt there were not enough specialists or insurers offering capacity for haulage, waste disposal and courier journeys within the sector.

Firms also revealed they were worried about an increase in claims, driver shortages and proliferation of risk, DCL added.

Joe Hantson, deputy chief executive of DCL, said: “While the outstanding level of broker resilience is clearly demonstrated by their confidence and business performance, we must all continue to focus on incremental improvements to manage the challenges we all face.”

Relationships

DCL obtained the figures using its broker barometer, which surveyed 123 UK brokers operating in the commercial motor market.

Data from the survey also showed that most brokers felt that having good relationships was key to helping overcome challenges within the sector.

For example, brokers felt it was either business critical (14%) or very important (46%) for their firm to have effective relationships between brokers, their insurers and MGAs and client policyholders to ensure good management and mitigate claims costs.

“Enthusiasm for the commercial motor market is welcome but expertise in such a challenging environment is an absolute must,” Hantson said.

“To that end, we always seek strong relationships with brokers and their policyholders in the form of our quarterly claims meetings.

“It allows brokers and policyholders to benefit from our experience, as we work together to reduce their incurred costs and improve efficiency.”