The insurance market continues to soften, but rates may be stabilizing somewhat or at least falling at a slower rate, according to NIP Group's Transportation Insurance Pricing Survey for the second quarter of 2010.

"TIPS results tell us that the market continues to soften but rate reductions may be decelerating," said Richard Augustyn, CEO of NIP Group. "It appears that survey participants are observing mixed signals in the market; while underwriting capacity for the transportation market segment has increased in the last quarter, rate reductions may have peaked."

When respondents were asked whether more or less insurers are underwriting the transportation class, 59.02 percent said more insurers are underwriting, while 34.43 percent indicated underwriting had stayed the same. In comparison, only 4.92 percent said less are underwriting.

Rate Trends

While almost all types of accounts reported lower insurance premiums, some sectors had some respondents seeing slight increases in rates. Among small accounts, 9.43 percent said premiums had increased 1 to 10 percent in the second quarter, while 6.67 percent of medium accounts and 7.32 percent of large accounts said rates had risen by this amount.

Within trucking, 7.14 percent reported premiums were up 1 to 10 percent in the second quarter, while another 3.7 percent said rates rose 10 to 20 percent.

Ten percent of the intermodal trucking segment indicated premiums had gone up 1 to 10 percent. Of the messenger and courier services segment, 7.69 percent said rates were up 1 to 10 percent, while another 3.85 percent reported rate increases in the 10 to 20 percent range.

Premiums seemed to be somewhat higher or stabilizing for worker's compensation and umbrella liability coverage. For worker's compensation, 12.12 percent said premiums are up 1 to 10 percent, while 6.06 percent indicated increased rates from 10 to 20 percent. For umbrella liability, 7.32 percent said rates have increased 1 to 10 percent, with the same percent indicating rate increases in the 10 to 20 percent range.

NIP uses the quarterly survey to benchmark changes in the availability and rates in the transportation insurance market. It was issued to transportation insurance brokers, wholesalers and underwriters representing thousands of account placements.