NIBA / Special Feature
increasing accident figures we’re seeing (see breakout). Staff shortages, potentially inexperienced drivers and increasing work aren’t necessarily a positive mix – and it’s certainly one insurers are watching closely. Staff challenges then play into the workers compensation issue related to subcontractors. This has been well documented across many industries, but needs conversation and careful consideration in an increasingly litigious environment. Richards says it’s essential that, as part of the risk management processes in place, careful records are kept, as a claim could crop up years later. “It’s important to remember that if a subcontractor has an incident while working for you they may claim off their workers compensation, and then the workers comp insurer will try to recover the costs from your insurance,” says Richards. “There’s a seven-year statute of limitations, so you could feasibly get a letter of demand for an incident six years ago, and have to demonstrate the correct procedures were followed, inductions were completed, and so on. “This is a maturing risk – insurers have been remediating their portfolios over the past few years following aggressive recoveries from the WorkCover Authorities, which frequently start at $100,000 and can reach into seven figures.” As a consequence, insurers are asking a lot more about internal labour hire, working arrangements and risk mitigation methods. Which brings the conversation around once more to technology. “That’s one of the reasons why heavy- vehicle operators are investing in driver fatigue and other risk management technology; they are willing to spend big money on keeping their vehicles and drivers safe and on the road,” says Caldwell. “Technology to keep drivers safe, such as monitoring fatigue, distraction and other risky behaviours – like speeding, harsh
This has become most prevalent in cold chain logistics, where IoT-enabled containers monitor for and alert on fluctuations in temperature, enabling early intervention to mitigate spoilage. And just as road transport clients investing in safety technology signifies a proactive approach to risk, the same applies to marine. “When clients invest in IoT and real-time tracking, it signals a proactive risk culture,” says Ben Briscoe, General Manager, Underwriting & Technical Services at GT Insurance. “It tells us that customers are serious about managing risk. This proactive approach means there are likely to be fewer surprises for the transport company and the shipper.”
braking or unsafe following distances; and digital systems to track vehicles and record events, manage drivers’ work diaries and things like that are standard. It’s important that they are, because transport companies have Chain of Responsibility (CoR) obligations – executives, senior management and driver managers etc, have obligations to ensure their drivers are safe and not putting their drivers and the public in danger.” Managing risk at sea Away from the roads, technology is also increasingly being relied upon when transporting goods on water. Internet of Things (IoT) sensors and real-time tracking are becoming increasingly common as businesses explore new ways to ensure cargo reaches its destination in optimal condition.
WHERE CLAIMS COME FROM
Each year, NTI’s National Truck Accident Research Centre (NTARC), with the National Road Safety Partnership Program (NRSPP) and Monash University’s Accident Research Centre (MUARC), publish the NTARC Accident Report, which analyses heavy-vehicle accidents in Australia. Key findings from the 2024 report include:
A 27% increase in incidents in 2023, compared to 2022. Crashes related to human factors increased by 42% in 2023, compared to 2022.
Incidents attributed to inattention/distraction increased by 75% in 2023, compared to 2022. Inappropriate speed incidents increased by 41% between 2019 and 2023. Inadequate following distance incidents increased by 73.5% between 2019 and 2023.
52 / INSURANCE ADVISER JUNE/JULY 2025
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