What’s changing in the motor fleet market?
Authored by NIG
Demand is rising – The motor fleet market has returned to growth. September data from the Society of Motor Manufacturers and Traders (SMMT) highlights that year-to-date new company car registrations are up 7% compared to 2020, with the equivalent of two fleet and business registrations every minute in the first nine months of the year.
Significant uptick in demand for greener vehicles – 32,721 Battery electric vehicles (BEV) were registered in September – that’s almost one every minute. Plug-in hybrids and hybrid electric vehicles (HEVs) also increased their market share. We’d expect this trend to continue as greener vehicles become more affordable and companies look to reduce carbon emissions in line with the government’s target of being net-zero by 2050.
Car technology is evolving – Increasingly complex car technology is having an impact on fleet policies, with specialist experience and expensive parts often required for repairs. Advanced Driver Assistance Systems (ADAS), which can be impacted by even common repairs such as windscreen or wing mirror replacement, are increasingly popular. AI, 5G and autonomous vehicle technologies are all expected to play a key role in the future of fleet and will all require increasingly complex levels of technology and connectivity.
How is NIG responding to these changes?
We have a strong appetite for underwriting electric vehicles – in the past five years we’ve seen a 60% increase in the number of policies which include an electric vehicle and a 240% increase in the number of electric vehicles on cover.
We have no restrictions in place when it comes to writing electric fleets. However, additional terms may apply for high performance or high value vehicles.
We’re also continually adapting our policies to better meet the needs of the electric fleet market, for example, we’ve recently updated our fleet wording to include electric cables, batteries and chargers within the Accessories definition.
We’re working closely with our Auto Centres and garages across the UK to upskill and ensure that technicians are able to effectively repair and maintain electric vehicles and the growing range of new car technologies. High voltage training is now a core part of our apprentice training programme, with trainees undertaking the IMI’s Level 3 in Electric/Hybrid Vehicle System Repair and Replacement. Between January and October 2021, we’ve seen an 20% increase in high voltage vehicles repairs including BEVs, HEVs and plug-in hybrids.
To find out more talk to your usual NIG contact.
About NIG
We’ve been experts in commercial insurance for 125 years.
The National Insurance and Guarantee Corporation (NIG) is a broker only insurer; we believe in getting to know both the brokers we work with and their clients’ businesses, building trusted partnerships that last for the long-term. Our highly experienced underwriting team are focused on working with brokers to identify and understand the risks faced by UK enterprises. Together, with our risk control experts and risk management tools we develop solutions to help UK enterprises reduce and mitigate key exposures. We offer a wide range of products with flexibility to create tailored insurance cover and when clients need us, claims are dealt with quickly and fairly through a proactive claims approach.
Our trading model has been designed to reflect the differing requirements of how brokers like to trade, with regional offices, National Trading Centre, National Schemes Centre, eTrade Centre of Excellence and dedicated experts for specialist sectors.
We’re investing in new technology to make us even easier to trade with. We’re launching an online risk management resource supported by our in-house Risk Control Team and introduced online claims submissions to speed up the claims process, minimising disruption to clients’ businesses. We are also the only insurer two years running with a five-star rating for both TheHub and Software Houses, in the Insurance Times 2019 and 2020 eTrade survey.
We are dedicated to making UK enterprises more resilient.
NIG is a wholly owned subsidiary of Direct Line Insurance Group plc, providing stability and financial strength. Our policies are underwritten by U K Insurance Limited.