News

HSBC's decision to stop underwriting insurance for commercial vehicles could push up fleet insurance premiums, according to brokers.

Haulage specialist Giles Insurance Brokers has set up a dedicated helpline for hauliers concerned about HSBC's withdrawal from the market.

Howard Pearson, retail MD at Giles, says: "This latest announcement has come as a major blow to  many organisations. With the withdrawal of a major player in the fleet market this may result in motor rates being increased."

HSBC says it will no longer underwrite any motor insurance through its HSBC Insurance and HSBC Management Services businesses, and will now service its 400,000 policyholders only until their renewal dates.

HSBC has traditionally underwritten insurance for vans and smaller trucks.

Mark Hemingway, HSBC spokesman, says: "This is nothing to do with an assessment of haulage industry risks, but rather a strategic decision not to underwrite any motor insurance risks."

John Marks, sales director at commercial vehicle insurance specialist broker Lampier, adds: "This news is bound to have a knock-on effect."