Marsh says the Australian transport and logistics market remains challenging for insureds as rates continue to rise, driven by higher accident frequency and increased repairs costs.

Other factors pushing up premiums include driver shortages and supply chain disruptions.

“A shortage of drivers in the face of increased demand for commercial fleets has, at times, led to companies lowering driver applicant standards,” Marsh said.

“This approach can potentially increase risks, contribute to higher claims frequency and severity, and compromise road safety in general.”

The broker says insurers have been offering higher deductibles to alleviate premium increases and, at the same time, maintaining a cautious approach at renewal time.

Insureds that can demonstrate strong risk management may save on premiums.

“This includes documented safety practices, driver training/safety programs and effective fleet maintenance,” Marsh said.

Using risk mitigation technology such as dashcams may also help reduce premiums.

“The business case for technology continues to strengthen as insurers recognise its value in reducing risk, with operators investing in such technologies better positioned to achieve more favourable outcomes at insurance renewal or at the time of a claim,” Marsh said.

“Overall, starting early, demonstrating risk reduction, maintaining transparency and communication with insurers, as well as maintaining a clean claims history, will enable insureds to navigate the evolving insurance market effectively and be best positioned to achieve favourable renewal results.”