Tranportation Pricing Survey Confirms Continued Soft Marketplace

It is neat to see surveys on transportation insurance pricing. NIP Group is a market leader in the survey business. I am challenged to believe the survey results are anything but conjectural- in that the exposure basis is not reflected in the survey and you can bet exposures have lessened ( i.e. less trucks on the road). The survey also does not measure the relativity of loss experience either.

Even so I think you will find the report helpful below:

Transportation Insurance Pricing Survey (TIPS™) Results Released,
Rate Decreases Intensify as Stubborn Soft Market Persists
February 26th, 2010 (Woodbridge, NJ) — NIP Group, Inc. published the results of the Transportation Insurance
Pricing Survey (TIPS™) for the fourth quarter of 2009. Used to benchmark changes in availability and rates in the
transportation insurance market, the survey was issued to leading transportation insurance brokers, wholesalers
and underwriters representing thousands of account placements.
The majority of survey participants have responded that they believe the market is softening and that rate
decreases have intensified especially in Auto Liability since the prior quarter. Respondents also suggested that
there appears to be more insurance carriers chasing premium in the transportation insurance market.
Participants report that rate decreases have picked up across most policy types; Workers Comp being the one
clear exception. Rates in Auto Liability have been hit especially hard, as 30% more respondents believed that there
were significant rate decreases in 4Q09 vs. 3Q09, and the number of reported rate increases also fell sharply.
The survey also measures premium changes across ten different transportation segments including:
■ Trucking Operations ■ Intermodal Carriers
■ Messenger/Courier Services ■ Ambulance/Paratransit
■ School Bus Contractors ■ Bulk Transportation
■ Airport Ground Transportation ■ Charter/Tour Bus Operators
■ Specialized Carriers & Riggers ■ Limousine Services
The survey results indicate that rate decreases have picked up in most segments; Charter/Tour, School Bus and
Limo being the exceptions. The rate decreases are especially pronounced in the Bulk Transport segment.
“Since the last quarter rates continue to fall and are intensifying in Auto Liability the lead line of business in the
Transportation market based on the latest TIPS™ results,” said Richard Augustyn, CEO of NIP Group, Inc. “With
the exception of the Public Auto segment fierce competition for premium volume is driving rates lower. We will
continue to monitor TIPS™ results to see how much lower rates will fall given that the momentum behind this trend
appears very strong.”