Transportation insurance rate decreases seem to be moderating and are down on average between 1 percent to 10 percent, according to a recent industry survey on availability and rate trends in the transportation insurance market.
According to NIP Group Inc.’s Transportation Insurance Pricing Survey (TIPS) for the second quarter of 2009, more participants have reported modest rate increases across many segments, account sizes and lines of coverage during the second quarter of 2009. New entrants are also gaining market share as established transportation underwriters are holding the line on rates and are less likely to lower rates appreciably below expiring levels, the survey revealed.
The majority of respondents believe rates in the transportation insurance market are beginning to level out as observed by the slight firming of auto liability and motor truck cargo rates. Rate increases have also begun to emerge in some market segments especially ambulance/paratransit, airport ground transporters and specialized carriers.
The survey measures premium changes across 10 different transportation segments, including: trucking operations, intermodal carriers, messenger/courier services, ambulance/paratransit, school bus contractors, bulk transportation, airport ground transportation, charter/tour bus operators, specialized carriers and riggers, and limousine services.
“TIPS results show signs of a transportation insurance market where rates are beginning to level out,” said Richard Augustyn, CEO of NIP Group. “The market appears to be in a transitional phase being led by established transportation underwriters trying to selectively drive up rates on key lines of business. It will be interesting to see in future TIPS results if this is an ongoing trend.”
Source: NIP Group Inc.