Posted on 14 Mar 2013 by Neilson
NIP Group, Inc. released the results of the Transportation Insurance Pricing Survey (TIPS) for the fourth quarter of 2012. 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 results demonstrate that the majority of respondents believe that the Transportation market remains consistent to last quarter, indicating we are in a hard market. Participants believe that as a result of significant rate increases in auto liability rates more generalists are re-entering the space compared to last quarter. Over recent quarters we have seen rate increases intensifying: however they may be consolidating at higher levels according to some respondents in this latest report.
The survey also measures premium changes across ten different transportation segments including:
+ Trucking Operations
+ Intermodal Carriers
+ Messenger/Courier Services
+ School Bus Contractors
+ Bulk Transportation
+ Airport Ground Transportation
+ Charter/Tour Bus Operators
+ Specialized Carriers & Riggers
+ Limousine Services
In the fourth quarter of 2012, some participants have noticed no change on select segments, as opposed to rate increases in the previous quarter.
When, looking at the premium changes reported by coverage type it is evident that the majority of participants believe that rates remain up vs. last quarter; however, a few participants reported no rate changes in the Trucking, Intermodal, and Charter/Tour segments.
TIPS results indicate that we are starting to see a deceleration of rate increases in some parts of the country, said Richard Augustyn, CEO of NIP Group, Inc. However, rate levels remain high but are showing some signs of leveling off as both specialist and generalist insurers are increasing their participation in the market.
About NIP Group, Inc.
NIP Group, Inc. is a specialized business insurance and risk management intermediary, ranked among the largest 100 in the United States and providing a wide range of brokerage, underwriting and risk management services to select market segments.