Commercial motor insurance: How brokers can offer stability in the face of inflation


DCL help brokers navigate inflation in the commercial motor insurance market.

With the Bank of England warning inflation might reach 10% within months and interest rates rising, it is anticipated that this, along with other world events, will continue causing problems for the commercial motor insurance market.

As demand for the supply and distribution of materials across the globe rises, this inevitably pushes up prices and can cause significant disruption within supply chains. Obtaining vehicle parts and hire cars are no exception and, as a result, vehicle repair and claims costs have risen drastically, which could ultimately affect clients’ future premiums.

DCL, partnering with brokers, can help tackle the above issues head on and provide a more optimistic outlook for clients. While inflation itself isn't fixed or predictable, there are a few things brokers can do to try and maintain some stability when looking after their clients and to ensure that you retain (and win) business during these turbulent times.

Opportunity from adversity

Commercial motor insurance is complex and as a result, brokers can have a tough time making sure all the correct information is received by their clients. However, everyone can empathise with a business owner’s plight at the moment. So, facing up to the realities of the current economic situation, anticipating and discussing how things could potentially develop, provides an opportunity to offer alternative solutions, find new ways to help your client and ultimately, build a more solid working relationship.

For example, when the prospect of cheaper but possibly unsuitable quotes arises, brokers should continue to initiate conversations about what going down this route might mean in the long run for the client. The implications of looking to save money can result in cover being diminished and that's going to cost in other ways...

Have the right products on your roster

Having had frank conversations with clients, you’re going to want to provide tangible and sustainable solutions. Our fixed premium product, T20, for example, ensures that when a client adopts this route, they protect themselves against any upcoming market pressures and will help you compete at the outset!

Helpful benefits of our T20 product for policyholders and brokers alike include:

  • Guaranteed premium stability for 3 years through a predetermined rating structure.
  • The fact that brokers save time and money in years 2 and 3, with no market exercise.
  • Premiums adjust automatically based on individual fleet performance.
  • The product allows for effective forecasting of insurance costs over 3 years.
  • Annual premium reductions of 20% can be achieved.
  • Rating discounts are available due to the unique structure of the matrix.

To offer maximum flexibility and continued support for you and your clients, at DCL, we provide ANY licensed driver on the majority of quotes we offer. And, to further combat claims inflation, your clients can choose to repair their vehicles within our large repair network which, on average, costs 40% less and sees vehicles back on the road 3 days sooner.

Don’t underestimate your value!

While there is the worry that more money-conscious clients will be looking for the cheapest rate, we know that this is not necessarily going to get them the best cover. Especially if they have particularly individual or specific requirements, as is often the case in the world of commercial motor insurance.

The value brokers provide their clients by offering educated guidance, market insight, and supplying access to the most suitable policies and protection, can’t go unrecognised. Now’s the time to emphasise that.

To continue to support your clients during this challenging time, ensure DCL feature in your market exercise or that you request a T20 quote from your wholesale broker.

For further information about the T20 product, visit our website.

Authored by Direct Commerical


About DCL

Established in 2002, Direct Commercial Ltd (DCL) is a market leading Insurance Underwriter specialising in Commercial Motor for the UK and Ireland.

DCL's proven track record in the Commercial Motor market combined with the backing and security of some of the world's highest rated insurers provides the market with a selection of premier, all-inclusive Motor Fleet products.

If you are a FCA registered Insurance Broker and you would like to take advantage of any of our offerings please do not hesitate to contact us via our website or email us directly at


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