Trends in motor trade insurance in 2017

The motor trade insurance market continues to grow as more challenges emerge in the market. As we go into the year 2017, we expect a more robust motor trade insurance industry but also greater changes on the insurance policy uptake. Here are a few trends that are expected in 2017 and beyond.

 The used car market will remain strong

The used car market is expected to stay stronger into 2017. Most industry analysts expect at least a ten percent increase in the overall used car sales volume in 2017. This will have an effect on an increased uptake on several insurance products that target the used cars.

On the other hand, it is expected that there shall be a weakened new car market with a decline of about 5 percent in 2017 and 1.3 percent in 2018. The market seems to be shifting greatly to the used car market.

Enhanced insurance benefits

Customers are demanding more that the basic cover for their vehicles. For this reason, a number of added benefits shall make their way into insurance policies in 2017. Such benefits include:

  • No claim rebates

This is a program where if the car owner does not make any claims within a given year, they get their money back. This product was originally designed to have the car owners get more careful.

Where you do not need to make your claim, the insurance company will not reduce or scrap your bonus.

  • Access to health, safety, and risk management resources

The insurance companies are expected to avail more resources with the aim of enhancing the client preparedness and enable planning for health, safety, and risk management.

  • A full theft cover and other robust underwriters are expected to come up with more products for the motor trade industry

A robust digital presence

A large number of insurance clients are expected to make online inquiries, make claims, and engage both the car dealers and insurance companies online. The onus is on the dealers and insurance companies to work on a strong online presence o that they are available to respond to client requests promptly. Companies with good digital service and prompt response will gain a competitive advantage.

Economies around the world are not doing well and are expected to slip further. Most of the dealerships are optimistic that things will brighten up. However, a prospect of a recession and economic turmoil possess the greatest threat to the industry. This is probably the reason why the new car market is expected to decline as the year progresses.