Did you know?
According to the Marsh Global Insurance Market Index, global commercial insurance prices rose by 6% in the third quarter of 2022
Insurance pricing in the third quarter of 2022 in the US increased 5%
Rising prices are affecting everyone, businesses and consumers, regardless of what industry or goods one is trying to purchase. Unfortunately, the insurance you need to protect your business, employees and fleet is not exempt either.
Below we discuss three factors that are contributing to the increase in insurance pricing for you to keep in mind.
3 reasons insurance rates are increasing:
- Inflation: As our economy sees an increase in inflation, the price of insurance premiums are likely to increase as well. Materials used to produce new vehicles are becoming more expensive; chip shortages are affecting the automotive industry’s ability to produce new vehicles – leading to low vehicle inventory; and labor shortages are all major reasons that impact our economy and your insurance premiums.
- Supply chain challenges: Supply chain issues continue to have a trickledown effect on all industries and the insurance and transportation segments are no exception. If your insured vehicle is involved in a crash, it now takes longer to repair or replace the vehicle and costs more for the insurer to pay the claims, meaning they have to adjust their rates to increase premiums to fill the gap.
- Modernization of today’s fleet: Vehicles today are very different – and more complex—than vehicles 5, 10 and 15 years ago. Automobile companies are more dependent on sourcing the materials and resources to develop these high-tech vehicles, which are also feeling the impacts of supply chain challenges (sourcing materials) and the increase in costs of materials and goods (inflation).
What you can do as a DSP owner:
- Review your quotes: As you receive quotes, either from the Marsh DSP Insurance program or an alternative carrier, be sure you are reading the fine details and that the coverage is what you are required to carry as an Amazon DSP, not all quotes are an apples to apples comparison. As Amazon’s Value Added Services (VAS) partner, Marsh ensures the program quotes meet the requirements in order to keep you compliant with Amazon and to protect your business, fleet and employees.
- Increase your emphasis on safety: As a DSP owner, it is crucial to stress the importance of safety to your employees before, during and after they are delivering packages. Increasing your businesses' safety practices could result in lower claim frequency, which may help you avoid an increase in your insurance pricing.
- Access your DSP performance dashboard: Our teams have developed the performance dashboard that is personalized to your DSP business and provides actionable insights for you to review based on YOUR insurance. Log in today >
Have additional questions?
We know insurance can be confusing at times. If you have any questions, or want to talk to a member of your regional account team about pricing and upcoming renewals, feel free to contact a member of the team today.
Interested in learning more about the Global Insurance Market Index? This is Marsh’s proprietary research of the global commercial insurance pricing change which provides insights on the world’s major insurance markets. Click here to learn more.