Survey: Transportation Insurance Industry Stabilized

Second-quarter results from NIP Group Inc.’s “Transportation Insurance Pricing Survey” (TIPS) continue to purvey a belief among leading transportation insurance brokers that stability in terms of rate fluctuation and availability has returned to the industry.

“Overall TIPS results for the past two quarters indicate that survey respondents continue to believe the market is improving from where it was a couple of years ago, but we seem to be in a transitional period where not much has changed since last quarter,” said Richard Augustyn, CEO of NIP Group.

The survey breaks down the industry into 10 different segments with only slight variations from segment-to-segment to be found. Respondents leaned slightly toward a soft transportation market when asked about overall direction, with 34.7 percent replying “soft,” 32.7 percent saying “flat” and 26.5 percent indicating “hard.”

Premiums brought the largest imbalance to the results, where nearly 80 percent of respondents noted no change or a decrease in premiums for large accounts when compared to last quarter. Similarly, midsize accounts were indicated to have slightly shrinking premiums as well, while small accounts held steady for the most part.

Also continuing a recent trend, respondents believe that non-specialty insurers are entering the transportation market at a decreasing rate.

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