NIP Group Inc. announced the results of its Transportation Insurance Pricing Survey for the first quarter of 2011, which is 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.
NIP Group says the general consensus of survey respondents is that while the market remains soft, it has reached stability, where it is not getting worse. Analysis of the results for the past few quarters shows that respondents believe that the rate at which nonspecialty insurance carriers are entering the transportation space is slowing down.
Survey participants believe that premiums on all accounts, regardless of size, are mostly flat, with some segments posting rate increases.
Respondents report that there are differences in the way rates are reacting across the transportation market depending on the segment. A trend toward a flat market is indicated in a number of segments, including Messenger/Courier, School Bus and Ambulance/Paratransit; however, a number of segments are showing a trend toward a hardening market, including Bulk Transportation and Charter/Tour Buses. From a line of business perspective, survey participants report that premiums for Auto Liability and Owner Operator programs are indicating a flat or hardening market.
“Based on the past quarter’s TIPS results, it seems that survey participants are optimistic that rates have stabilized and are starting to slowly move higher,” says Richard Augustyn, chief executive officer of NIP Group Inc.