Reported fewer entrants into the transportation marketplace than last quarter
NIP Group has released the results of the Transportation Insurance Pricing survey for the third quarter of 2009. The survey was issued to transportation insurance brokers, wholesalers and underwriters representing thousands of account placements.
According to the survey report, majority of survey participants have indicated that the signs of rates levelling off at this time last quarter have been replaced by intensifying competition and nearly across the board rate decreases. The respondents have seen fewer new entrants into the transportation marketplace than last quarter, the overall view on the direction of rates is grim. It is evidenced by the number of respondents reporting rate decreases has gone up since last quarter, across all account sizes.
On the other hand, the respondents have indicated that the trend of rate decreases can be seen across almost all policy types except worker’s compensation. They are no longer seeing the rate increases that were reported for most policy types last quarter.
In addition, the survey also measures premium changes across ten different transportation segments including trucking operations, airport ground transportation, specialized carriers and riggers, intermodal carriers, ambulance/paratransit, bulk transportation, charter/tour bus operators, limousine services, school bus contractors and messenger/courier services.
Richard Augustyn, CEO of NIP Group, said: “TIPS results indicate that the market has reversed direction and is softer now compared to last quarter. Nearly all signs of rates levelling off have been replaced by signs of intensifying competition.