Skip to main content

Industry factors impacting Australian transport and logistics insurance trends in 2025

There are a range of insurances, such as transport insurance, freight insurance and business interruption insurance that can protect operators, couriers and logistics businesses from risks like vehicle accidents, cargo damage and third-party claims. The insurance market for this sector has been challenging in recent years. Premiums have increased as a result of accident frequency, and rising costs of repairs and replacement parts due to inflation.

Premium pressures in commercial vehicle and transport insurance

Most insureds in the transport industry have experienced insurance premium increases in 2025. Insurers have been offering higher policy deductibles to help alleviate premium increases for policyholders.

A number of factors have been driving premium increases, including:

  • Inflation and rising costs: Repair costs continue to exert upward pressure on insurance premiums following the supply chain challenges for vehicle parts during the pandemic.
  • Driver shortages: A significant shortage of drivers places additional pressure on existing drivers and can contribute to claims from inexperience or fatigue.
  • Claims frequency and severity:  Increasing claims frequency and severity in recent years combined with rising costs in general have increased the overall cost of claims for insurers. This consequently had a flow-on effect to premiums.
  • Workforce dynamics: The ongoing driver shortage and aging workforce challenges can have an impact on the insurance market. The industry is grappling with attracting and retaining drivers, which can have implications on safety and insurance claims.
  • Supply chain disruptions: The availability of new vehicles appears to be settling after a prolonged period of supply shortages. This is particularly evident in the heavy transport space with manufacturers now having vehicles available within months of ordering instead of waiting over 12-24 months for a new vehicle to arrive. However, repairs are still proving costly and have been driving up premiums.

Claims trends in trucking and freight insurance

The frequency of claims is being scrutinised by insurers more closely due to rising costs.  Some recent claims trends include:

  • Increased accident frequency and severity: More trucks on the road and a higher demand for faster deliveries have led to a rise in collision risks.
  • Natural disasters: Frequent natural disasters in Australia like floods, storms, hail and bushfires have led to more claims and higher costs for insurers, which in turn drives up premiums.
  • Driver shortages and standards: A shortage of drivers in the face of increased demand for commercial fleets has, at times, led to companies lowering driver applicant standards. This approach can potentially increase risks, contribute to higher claims frequency and severity, and compromise road safety in general.

Top 4 insurance renewal tips for transport businesses

Insurers have been maintaining a cautious approach when it comes to insurance renewals, with continued premium pressures driven by rising claims costs and inflation.

Our top 4 tips to help trucking businesses navigate renewals effectively and potentially save on premiums are:

  1. Demonstrate strong risk management: This includes documented safety practices, driver training/safety programs and effective fleet maintenance.
  2. Technology as a risk mitigation tool: While the widespread adoption of technology in the trucking industry is still evolving slowly, new products and tools, such as advanced safety features and dashcams, are becoming increasingly available. The business case for technology continues to strengthen as insurers recognise its value in reducing risk, with operators investing in such technologies being better positioned to achieve more favourable outcomes at insurance renewal or at the time of a claim.
  3. Consider telematics data: Leveraging data from telematics and GPS tracking can help develop effective risk management strategies and may help reduce insurance costs.
  4. Understand how insurers see your operations: Knowing the critical factors insurers focus on during the underwriting process can help in presenting your business and risk profile in the best light. Starting the renewal process early and working closely with your insurance broker is essential in ensuring insurers have adequate time to review your renewal information and underwrite your risks, and that you have adequate time to review quotations and coverage options.

Overall, starting early, demonstrating risk reduction, maintaining transparency and communication with insurers, as well as maintaining a clean claims history will enable insureds to navigate the evolving insurance market effectively and be best positioned to achieve favourable renewal results.

Key insurances for transport and logistics businesses

Transport and logistics companies and small businesses have unique risks. Their insurance needs depend on their business operations and exposures. Some of the key insurance policies commonly purchased by businesses in this sector include:

Download our 2025 Australian Mid-Year Insurance Market Update

Explore insurance market trends, premium analysis across 13 insurance classes, and expert insights.

Download the report

Frequently asked questions

Transport insurance protects operators, couriers and logistics businesses from risks like vehicle accidents, cargo damage, third-party claims and potentially loss of income due to these factors.

Truck insurance is designed for heavy vehicles, prime movers and fleets. It usually covers the insured’s own damage, liability to third parties and sometimes cargo in transit. Costs are influenced by truck value, driver records, load type and operating routes.

Goods in transit insurance covers non-owned freight while being transported by road, rail, air or sea. It can help cover costs in the event the goods are damaged during delivery or due to loading and unloading and is particularly relevant for freight forwarders and logistics companies.

Freight insurance can include protection for both the cargo and the carrier’s liability. It ensures businesses are not left out of pocket if goods are damaged in transit or if the business is held responsible for a customer’s loss.

Costs vary depending on business size, risk profile and policy limits. Many transport contracts in Australia require $10-20 million in public liability insurance coverage. Insurers will typically assess safety records and past claims when setting premiums.

Premiums are shaped by vehicle values, driver shortages, accident frequency and the rising cost of repairs.

Comparison sites exist, but they often provide generic cover. Transport operators may need more tailored policies, especially for goods in transit or fleet liability. Working with a broker can help match cover to business needs and ensure you are adequately protected.

While cost is a major consideration for most businesses, price should not be the only factor when making insurance decisions. Coverage is also key and what matters when there is a claim. Policies that exclude certain cargo or limit liability can leave businesses exposed.

Yes. Clients, depots and government tenders often require a certificate of currency before allowing access. It proves your cover is current, such as public liability, motor vehicle or goods in transit insurance.

Compulsory Third Party (CTP) cover is mandatory for registered vehicles in each state. Beyond that, many contracts require additional policies such as public liability, workers' compensation or transit cover, depending on operations and contractual obligations.

Small owner-operators often need at least vehicle and liability cover to secure contracts. Without these, they may not be able to work with larger freight companies or government contracts.

Logistics insurance is tailored for businesses managing supply chains, warehousing or freight forwarding. It may combine public liability, professional indemnity and goods in transit cover, depending on the services offered.

Fleet insurance covers multiple vehicles under one policy. It can make administration easier and may offer flexibility if vehicles are frequently added or removed from the business.

Yes. Courier liability insurance helps protect drivers and businesses against claims for damage or injury while delivering goods. Many e-commerce contracts require this cover.

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and any analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.

This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238 983) (“Marsh”) and Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369) (“MAI”) arrange the general insurance (i.e. not the Discretionary Trust Arrangement) and are not the insurer.

Discretionary Trust Arrangements are issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417 964) (“JGS”). Any advice or dealing in relation to a Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). The cover provided by a Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.

For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements (PDSs) available from the relevant product issuer. Target Market Determinations (TMDs) are available here.

Marsh, MAI, JGS and JLT are businesses of Marsh McLennan.

LCPA 25/910