Most transportation insurance rates in the third quarter were decreasing as marketplace competition has increased, according to a brokerage firm survey.
The NIP Group Inc. in Woodbridge, N.J., said that was the finding of its Transportation Insurance Pricing Survey (TIPS), which contacted transportation insurance brokers, wholesalers and underwriters involved with “thousands of account placements.”
Although survey respondents have seen fewer new entrants into the transportation marketplace than last quarter, “the overall view on the direction of rates is grim,” NIP reported.
The firm said, “This is evidenced by the fact that the number of respondents reporting rate decreases has gone up since last quarter across all account sizes. Similarly, the number of rate increases being reported has abated.”
Richard Augustyn, NIP chief executive officer, said survey results indicate that the market has reversed direction and is softer now compared to last quarter. “This change in direction is not what we were expecting based on last quarter’s results. We will continue to monitor TIPS results to see how this plays out during the key January renewal period.”
The survey measured premium changes across ten different transportation segments, including:
Nearly all segments have experienced rate decreases over the past quarter, with bulk transportation seeing somewhat better results.
For that segment 34.78 percent reported no change in premiums, and 8.7 percent said they were up by 1-to-10 percent. Another 34.78 percent said they were down 1-to-10 percent, 8.7 percent said they were down 10-to-20 percent, and 13.04 said premiums were down 20-to-30 percent.
Respondents who found prices soft or softer totaled 53.66 percent, and 45.06 percent found “more” or “many more” insurers were writing insurance for the transportation sector.
NU Online News Service, Dec. 2, 1:56 p.m. EST
Most transportation insurance rates in the third quarter were decreasing as marketplace competition has increased, according to a brokerage firm survey.
The NIP Group Inc. in Woodbridge, N.J., said that was the finding of its Transportation Insurance Pricing Survey (TIPS), which contacted transportation insurance brokers, wholesalers and underwriters involved with “thousands of account placements.”
Although survey respondents have seen fewer new entrants into the transportation marketplace than last quarter, “the overall view on the direction of rates is grim,” NIP reported.
The firm said, “This is evidenced by the fact that the number of respondents reporting rate decreases has gone up since last quarter across all account sizes. Similarly, the number of rate increases being reported has abated.”
Richard Augustyn, NIP chief executive officer, said survey results indicate that the market has reversed direction and is softer now compared to last quarter. “This change in direction is not what we were expecting based on last quarter’s results. We will continue to monitor TIPS results to see how this plays out during the key January renewal period.”
The survey measured premium changes across ten different transportation segments, including:
Nearly all segments have experienced rate decreases over the past quarter, with bulk transportation seeing somewhat better results.
For that segment 34.78 percent reported no change in premiums, and 8.7 percent said they were up by 1-to-10 percent. Another 34.78 percent said they were down 1-to-10 percent, 8.7 percent said they were down 10-to-20 percent, and 13.04 said premiums were down 20-to-30 percent.
Respondents who found prices soft or softer totaled 53.66 percent, and 45.06 percent found “more” or “many more” insurers were writing insurance for the transportation sector.
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