Commercial motor insurance in the United Kingdom is making significant strides, according to a recent survey, yet brokers are signalling a clear appetite for more adaptable and innovative solutions from insurers.
The latest Broker Barometer from Direct Commercial Limited (DCL) had shed light on the evolving landscape of this key sector. The findings reveal a mixed but generally positive sentiment among brokers regarding the current product offerings. Nearly half - 46% - expressed satisfaction with the variety of commercial motor products available. However, a notable 42% adopted a neutral stance, suggesting room for growth, while 12% explicitly stated a need for clear improvements.
When queried about desirable additional features or cover options, brokers frequently cited comprehensive fleet policies, noted by 64% of respondents. Policies leveraging camera and telematics technology were also a priority for 40%. Emerging considerations included enhanced legal protection and cyber risk coverage for connected vehicles.
Flexibility remains a critical element in brokers’ placement decisions. The ability to make mid-term adjustments to policies was rated as either “business critical” or “important” by 81% of brokers. This emphasizes the need for insurance solutions to align with the dynamic operational requirements of commercial fleets.
Joe Hantson, deputy CEO of Direct Commercial, affirmed these findings, stating, “This feedback reinforces what we consistently hear from our broker partners: they value products that can adapt to the realities of operating a fleet.”
The survey’s results paint a picture of a commercial motor insurance market in transition, with brokers acting as a vital conduit for feedback, pushing for innovations that align with the ever-changing needs of commercial fleet operators. This drive for adaptive policies aligns with broader developments in the global commercial vehicles market. The market, valued at approximately $950 billion in 2024, is projected to reach $1.5 trillion by 2034, exhibiting a compound annual growth rate (CAGR) of 4.8%, according to a report from Exactitude Consultancy.
Major forces, including increasing urbanisation, the rapid expansion of e-commerce, and evolving environmental regulations, are reshaping how goods and services are transported worldwide. The interconnected nature of these segments means that innovations, such as the push for electrification and digital transformation in fleet management, influence the entire ecosystem, demanding more flexible support services like insurance.
What are your thoughts on the latest findings? Share your insights below.
