NIP Group Inc. published the results of the Transportation Insurance Pricing Survey for the third quarter of 2010. The survey was issued to leading transportation insurance brokers, wholesalers and underwriters representing thousands of account placements and is used to benchmark changes in the availability and rates in the transportation insurance market.
Survey responses indicate that the transportation insurance market remains soft. In addition, participants believe that there has not been much change in carrier behavior since last quarter. There are still many carriers chasing premium in the transportation market. Rates continue to fall across all account sizes in line with the prior quarters’ results.
Compared to last quarter, survey participants report that underwriters of bulk transportation, specialized carriers and riggers, ambulance and airport ground segments are resisting further rates decreases.
From a line of business perspective, a significant number of respondents believe that the rate contraction in the worker’s compensation line of business is beginning to ease, with more than 50 percent indicating rates are flat or up from last quarter. However, umbrella and owner-operator rates are heading in the other direction and continue to fall.
“TIPS results indicate that rate decreases are in line with last quarter with underwriters in a few segments and lines of business pushing back in an attempt to hold rates flat”, said Richard Augustyn, CEO of NIP Group, Inc. “It remains a buyers market with more than enough underwriting capacity available. We will continue to monitor TIPS to see if this trend will continue and how the market reacts to the rollout of the Federal Motor Carriers Safety Administration’s new Comprehensive Safety Analysis (CSA 2010) initiative officially kicking off November 30th.”