Truck insurer National Transport Insurance (NTI) says there will be an increase in heavy motor claims for the second half of this year, with the favourable claims environment now over.

CEO Wayne Patterson says healthy economic conditions led to a significant increase in the number of trucks on Australian roads last year but “a more realistic claims environment is on its way”.

He says record new truck sales in the first half of this year, and high fuel costs that squeezed margins for all operators across the transport industry, have led to an increase in claims in the short-tail class, which “will undoubtedly put pressure on operating margins in the current market”.

NTI spokesman Kirsty Smith told Sunrise Exchange News while the forecast is negative for the industry, increased claims won’t have a “quantifiable” effect on the group’s profits.