The changing landscape of Transport Insurance - by Steven Thomas
The changing landscape of Transport Insurance
The risks and losses in the transport industry can be massive, bringing devastation and financial trauma to individuals, families and businesses. Add to this evolving environment the rapidly changing technology and the shifting face of the workforce, and you can appreciate that risk reduction is a serious priority. It's due to all these changes that the government has taken a renewed interest in safety, specifically focussing on the risks drivers face every day on the road. The introduction of electronic logging devices (ELD) to limit driver's hours is a good example of this increased oversight and regulation.
What does this changing landscape mean?
Improved technology has helped to finetune driver risk profiles and increase driver safety. For example, technology has allowed better data to be collected via telematics, which is used to enhance driver risk profiles. At the same time however, rather than decreasing due to better data, premiums and claims have both risen. This situation may have something to do with increased driver distractions, where texting while driving and using audio-visual systems has led to increased fatalities and major accidents. So whilst improved technology can have its benefits, it can also create additional problems. Another very noticeable change within the transport industry is the increased diversity and specialisation, adding to the complexity of tailoring policies to an individual or company's exact needs. From small family run businesses to long haul carriers, risk profiles can change dramatically between drivers. These increasingly unique risk profiles might help to accurately tailor policies for individuals and companies, but they also require an in-depth understanding of the industry, and greater input and effort from providers. Regulatory changes are also having a significant impact on the industry. These are mainly aimed at increasing driver safety by increased monitoring of driver behaviour on the road (for example the ELDs mentioned earlier). Then there are the new HVNL laws that have been amended in Australia to increase driver safety, increase the chain of responsibility and place due diligence obligations on executives within the transport hiring company.
What drivers need to know to reduce their risks
Whilst drivers face many challenges on the road, taking out an insurance policy to protect against any financial losses. Staying up to date with any regulatory changes in the industry and ensuring that their policies provide sufficient cover is essential to reducing their risks. Avoiding driver distraction, a known cause of accidents on the road is also another strategy that can benefit drivers enormously to reduce their overall risks. It's also important to realise that all providers are not the same and their policies may differ in significant ways. Cost is not an adequate gauge of the eventual value of a driver's insurance policy within the transport industry. To provide adequate cover, providers consider a driver's current risk profile, as this determines the type of insurance required and the premiums that need to be paid. Opting for cheaper premiums and less cover, isn't the most sensible approach when trying to reduce financial risks in this industry. To speak to an insurance specialist about your transport insurance requirements, find your local adviser today. General Advice Warning This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.