The courier industry is notoriously challenging to insure, and with online shopping becoming a part of many UK consumer’s everyday life, the demand for couriers is rapidly increasing.
Miles Smith’s motor broking team have provided the following details on the courier industry, the common risks faced by couriers, how cameras and telematics can counteract these risks, and the importance of placing courier risks with the right insurer.
The courier industry in numbers
The delivery of parcels and other specialist courier services accounts for the majority of the post and courier industry revenue.
- Industry revenue currently sits at £22bn per annum
- Revenue is projected to grow 0.4% in 2017
- The UK post and courier industry currently employs around 260,000 people.
- There are currently around 16, 000 businesses making up the industry.
Statistics taken from: https://www.ibisworld.co.uk/market-research/postal-courier-activities.html
These statistics demonstrate the demand for, and importance that, the courier industry has in the UK economy.
Risks faced by courier companies
Individuals who drive more than 80% of their annual mileage on work related journeys have 50% more injury accidents than similar drivers who do no work related mileage. (DfT Road Research Report No. 51)
The majority of a courier’s working day is spent on the road; therefore there is an obvious correlation between the time spent on the road and the frequency of damage to their vehicle, themselves or someone else.
Couriers are under different pressures to longer-distance haulage drivers, as their delivery routes change daily, so they are often driving down unknown roads to deliver to domestic properties.
One of the key factors that can lead to a decrease in driving standards is the pressure faced to make a certain number of deliveries per day, often within a fixed time period.
Cameras, telematics and couriers
Installing a camera on a courier’s vehicle is no longer seen as a small outgoing that could bring down their premium; it is now often seen as a requirement from insurers to provide a courier quote.
Installing a camera into a courier’s vehicle increases the speed accidents can be reported to the fleet manager and in turn, the insurer. However, one of the problems facing insurers is the late reporting of minor incidents which, if reported promptly, could be quickly dealt with. When the incident is then subsequently notified by a 3rd party, the cost of the claim can escalate considerably. Therefore, the installation of cameras and telematics allows fleet managers to keep a track of all of their vehicles, and enables them to monitor their driver’s speed, braking power and any erratic driving, so that they are immediately made aware if any of their drivers have been involved in an accident.
Miles Smith and the courier industry
Following recent events within the motor market, it is vital that courier insurance is placed with a trusted and reliable insurer. Miles Smith London Market Broking has a unique courier scheme, underwritten by leading A-rated London Market fleet insurers.