Government Transport Policy set to increase Car Insurance Rates
The British Government although to be applauded in some social areas, seems to have totally got things wrong with it's policies towards infrastructure, and those policy relationships with transportation, movement of goods and people and subsequent business development and economic growth.
Anybody who has been stuck in a gridlocked traffic jam on the M25 while trying to get to a work meeting...will know exactly what I mean.
Yeah and they don't exactly provide roadside toilets (latrines to you guys over there), and what with all the closed circuit TV cameras covering every bush....!
Now I'm not one of those who would like to see less cars on the road, in fact, like J Clarkson I'd like to see more - on a lot more, better built roads and motorways.
And I'm certainly not advocating that you vote for Cameron and his policy less party!
The man would have us all on pushbikes!
But the latest announcement of UK Government transportation policy in mid week, borders on economic and social lunacy and demonstrates that the mandarins in Whitehall have little understanding of causality and it's consequences, and it logically follows that their plans, if they actually have any, lack any inherent vision.
What am I talking about?
Why? the stupid decision to slap a minimum £22 tax on every seat on most domestic flights within the UK!
In some places like Cornwall this is in addition to an Airport development tax that all departing passengers must pay. With all the additional charges like parking or taxis the combined effect will obviously be to push traffic back onto the roads, increasing risk and ultimately Your
car insurance premiums.
It's not like it's easy to travel domestically anyway, with the ridiculous security checks and the threat of fifth columnists, you can't even get a decent cup of tea or have a smoke in the modern departure lounge that mostly resembles a scene from Phillip K Dick's BladeRunner.
If you restrict the movement of people and goods you are restricting economic growth!
There are some exceptions to the ludicrous tax! if you live in the Outer Hebrides you won't have to pay the tax. This is obviously an area where the Scottish run UK Government wants to see some development!
Labels: car insurance, Road risks, Transportation Insurance, UK government
Risk Management - Transport Sector heading in the right direction?
Transport Sector heading in the right direction?By Insurance Blogger Kris Oldfield
Call it a credit crunch, an economic downturn or just a plain old recession the current financial situation is impacting in some form or another upon just about every single one of us and in many cases we having to adapt to survive. A recent survey by Marsh has highlighted the changes in attitude and strategy that are moving through the transportation and haulage insurance sector with nearly three quarters of Europe’s leading transportation firms set to review their approach to risk management in the near-term.
Freight Forwarders and Hauliers Insurance at risk?
With just over half the respondents admitting that the Transportation sector had been hit harder than others the general mood is one of caution. Tellingly the research also shows that more than 80% of those questioned felt that Risk Management was of a much higher priority amongst senior management at their organisations since the economic downturn.
However despite the overwhelming majority of respondents seeing the need for re-assessing their risk management strategies, the research suggests that there is not necessarily a reduction in risk appetite as one may assume. The amount of respondents who felt that their board had become more risk adverse was equally matched by those who saw no change in their risk appetite (40%). Interestingly there was also a sizeable faction (14%) who believe that their organisations have actually increased their risk appetite as they look to prosper, by boldly maximising the opportunities created by their competitors caution during the downturn.
Unsurprisingly the biggest concerns in the sector are customer debt and in the near-term, credit risk. Nearly two thirds of the respondents stated that customer debt was their most significant concern with many citing the increased risk of credit lines and delayed or non payment as some of the key challenges they face. Over a quarter of all respondents also admitted that credit risk was a concern for their organization and one in six admitted that their company was either ‘fairly’ or ‘significantly’ affected by the reduced levels of trade credit available at present.
Mark Pollard, head of industry practices for Europe, the Middle East and Africa at Marsh, commented that it was unsurprising that the European Transportation sector felt that it had been hit particularly hard by the recession as the industries primary function is the delivery of goods and passengers – demand for which historically has been shown to decline in periods of recession.
However in addition to this Pollard added that the fact that firms have been able to use the recession as a springboard to make essential reviews to their approach to risk management and improve upon their existing resilience was “extremely encouraging”.
With nearly a third of those surveyed confirming that they anticipate increasing their risk management spend, the signs seem to indicate that Pollard may well be correct – especially as this comes at a time when many other areas of business are being subjected to ruthless budget reviews and cost cutting measures. In fact less than 10% of Transportation companies have indicated that they believe that they will be reducing the expenditure of their risk management budgets, a statistic that seems a clear indicator of the direction in which the sector is now heading.
--------------------------------------------------------------------------------------------
InsuranceBlogger is not surprised that Risk Management in the Transport sector is thriving despite the recession. The recession itself has led to an increase in
haulier cargo insurance and
marine cargo insurance claims through piracy and modern day Dick Turpin highwaymen.
The old adage 'it fell off the back of a lorry' appears to never has been as true, as the rise in cargo and goods in transit theft continues despite major Police offensives. InsuranceBlogger believes that the 'black economy' is the main driving force behind this as consumer spending polarises to the 'boot sale' economy. Watch this space for a detailed look at risks to the haulage industry!
Labels: commercial insurance, Courier Insurance, credit crunch, Freight Forwarders insurance, Hauliers Insurance, Marine Cargo insurance, Risk Management, Shipping Insurance, Transportation Insurance
