The transport industry must tackle a “major spike” in large losses involving heavy goods vehicles, Lumley Insurance CEO John Nagle has warned.

The average claims cost has grown more than 23% in the past three years, he says.

Insurers, brokers and clients should work together to ensure appropriate risk management strategies are in place.

“Contrary to popular belief, insurers don’t want to raise premiums,” Mr Nagle said.

“However, if the current rate of accidents continues, there will be no option but to increase insurance premiums/deductibles, or simply stop writing these risks and redeploy capital to other product lines.”

Lumley has analysed 1600 claims over the past year, finding a significant increase in incidents involving drivers aged 35-55 with up to 10 years’ experience.

More than 65% of large claims are caused by driver error, with distraction or concentration lapses the most common factors.

Examples include drivers causing rollovers while searching for water bottles or re-setting on-board computers, the insurer says.

“This simply is the result of a poor safety culture,” Mr Nagle said. “It’s therefore critical for drivers and operators to understand the impact of their actions and be aware of the simple and pragmatic actions they can take to improve safety.”

Lumley says it has created practical risk management tools to help improve driver behaviour, culture and attitude.