Speculation that rates for high-risk insurance classes like heavy motor vehicle will plateau and even drop in the next two months is unrealistic, according to National Transport Insurance (NTI) CEO Wayne Patterson.

He says although 2003’s drought conditions lead to an exceptionally good year for claims and underwriters benefitted, claims frequency this year has returned to normal.

He disagrees with comments in last week’s Sunrise Exchange News that heavy vehicle rates are beginning to drop. “Truck owners shouldn’t expect to see large premium decreases this year as there has been no material change in the market to give anyone the opportunity to heavily discount premiums.”

“We did not set our premium rates for 2004 based on the events of 2003 re-occurring, and I doubt anyone else did, as we all knew it was an exceptional year for the industry,” Mr Patterson said.

He says the company is planning for a solid return this year, and NTI doesn’t plan to heavily discount rates. “Heavy motor insurance has recently recovered from years of losses. Why jeopardise that?”