Annually Recognized Title: Direct Commercial Ltd Wins Most Prestigious Award by MGA
Direct Commercial Limited (DCL), a specialist commercial motor insurer, has released its latest Broker Barometer, revealing key challenges in the broker experience across insurers, insurtechs, and MGAs in the commercial motor sector.
The survey highlights the slow transition to electric and hybrid vehicles, particularly in heavy goods vehicle (HGV) fleets. Only 13% of brokers believe their commercial motor clients are adapting well to electric or hybrid vehicles, while 44% say fleets are adapting poorly or not at all.
The main barriers to adoption include limited vehicle availability, mileage constraints, and a lack of charging infrastructure. While there is some progress with light commercial vehicles (LCVs), electric vans still form a small proportion of total fleets and involve higher maintenance and repair costs.
Brokers report that commercial motor operators, especially small and medium-sized enterprises (SMEs), face practical challenges in managing new technology and cost implications, unlike larger public sector or utility companies with more resources to manage charging logistics.
DCL emphasizes the crucial role of brokers in supporting clients through operational, financial, and regulatory changes, ensuring insurance solutions match the current realities of fleet technology rather than future market expectations. The insurer aims to help brokers manage costs, resilience, and compliance in the evolving commercial motor sector.
The survey also reveals a need for brokers to support clients navigating sustainability regulations and the changing risk landscape. A mere 9% of brokers consider operators somewhat prepared for sustainability regulations, and 25% say they are unprepared or entirely unprepared.
The latest DCL Broker Barometer also shows that while fewer brokers are reporting rising claims costs in the commercial motor market, there are still significant learnings, particularly about First Notice of Loss (FNOL) procedures.
In a separate development, DCL has been named 'MGA of the Year' at the 2025 British Insurance Awards in the commercial motor insurance sector. The prestigious accolade recognizes DCL's exceptional growth, innovation, and broker-first approach.
[1] Direct Commercial Limited's Broker Barometer report [2] Industry report on the adoption of electric and hybrid vehicles in the commercial motor sector [3] Survey on brokers' perceptions of clients' preparedness for sustainability regulations in the commercial motor sector.
- Direct Commercial Limited (DCL) considers the underwriting process for motor insurance, especially regarding electric and hybrid vehicles, needs innovation as only 13% of brokers report their clients are adapting well to these vehicles, while 44% say fleets are adapting poorly or not at all.
- The insurtech industry could play a significant role in addressing the challenges faced by SMEs in managing new technology and cost implications in the commercial motor sector, as brokers highlight practical difficulties these operators encounter in adapting to electric vehicles due to limited vehicle availability, mileage constraints, and a lack of charging infrastructure.
- In light of the survey results showing that merely 9% of brokers consider commercial motor operators prepared for sustainability regulations, there is an opportunity for insurers and insurtechs to collaborate on events focused on finance, business, and regulatory changes to help operators better navigate the changing risk landscape and ensure insurance solutions correspond with the current realities of fleet technology.
