Succession Crunch: Solving driver shortages without blowing out your premium

The situation

In 2024, the International Road Transport Union reported that there were roughly 26,000 heavy-vehicle driving jobs left unfilled in Australia. Australia’s not alone, either: the report found that across 36 countries, the number of vacant positions was 3.6 million. The report also found that 47% of Australian heavy-vehicle drivers were aged 55 or older, with only 5% under 25. While it’s likely a combination of multiple factors, many younger people find the oft-cited long hours and tough working conditions a deterrent. Despite the fact that salaries can be attractive, roles are still being left unfilled.

What younger drivers bring to your risk profile

Insurers see less experienced, younger drivers as a greater risk across the board – not just in heavy haulage. This puts a lot of business owners in a bind – they know they need a succession plan, but don’t want the burden of the higher insurance premiums.

To help understand your risk profile better, insurers will want to know about the safety and quality controls you have in place, as well as the training and monitoring that younger drivers will be receiving. If you don’t have strong, clear answers to the questions they pose, you might be hit with higher premiums or difficulties getting the level of coverage you need. So, what exactly do you need to do and say to manage your risk and reassure your insurance company that you’re taking the right steps?

How to manage risk with younger drivers

New drivers are a necessity, and training them alongside experienced drivers will be, too. So, is there a way to balance the needs of training, the costs of insurance, and the perceived safety boost that comes from more experienced drivers? Below, we’ve compiled a series of our top tips, designed to help you help younger drivers. With the right support, they can develop their skills and perform at their best, safely and consistently.

Having the conversation with your broker or insurer

Here are a few tips for preparing for the conversation with your broker or insurer – they’ll help you get the outcome that’s best for you and your business, so your workforce can continue to thrive into the future.

• Bring the data to the table: Gather and bring your driver training logs, telematics data, and outcomes of any monitoring you’ve been doing – your insurer will see that you’ve done your due diligence.
• Show you’ve segmented your risk: Explain that you’re implementing a graduated driver pathway and assigning younger drivers work that’s more suitable for their experience level.
• Ask about premium discounts: Are there any discounts or favourable terms for businesses that adopt structured driver-build programs? If so, how could you get involved?

The final word

Solving for the space between an ageing workforce and an inexperienced one is a challenge – but it can be managed. Show your insurer that you’ve planned and invested in the competence of these younger drivers, and you’ll be rewarded in the long term.

Any questions about the insurance impacts of your succession plans? Start a conversation with us.