NU Online News Service, Aug. 26, 1:52 p.m.EDT

Insurance rate reductions for the transportation industry aredecreasing, on average, between 1 and 10 percent for the secondquarter, and small increases are being seen, according to abrokerage firm's poll.

The findings were contained in NIP Group Inc.'s "TransportationInsurance Pricing Survey," which is used to benchmark availabilityand rates in the transportation insurance market.

Woodbridge, N.J.-based NIP said its survey was issued to leadingtransportation insurance brokers, wholesalers and underwritersrepresenting thousands of account placements.

NIP, a transportation insurance broker, said modest rateincreases can now be seen across many segments, account sizes andlines of coverage, continuing a trend reported in NIP Group's 2009first-quarter TIPS.

The broker said a majority of respondents "believe rates in thetransportation insurance market are beginning to level out asobserved by the slight firming of auto liability and motor truckcargo rates. Rate increases have also begun to emerge in somemarket segments, especially ambulance/paratransit, airport groundtransporters and specialized carriers."

According to the survey, large accounts, with over $250,000 inpremium, are continuing to see the sharpest rate decreases. Resultsshowed nearly 43 percent of respondents are seeing decreases over10 percent for large accounts, and over 66 percent are continuingto see decreases overall for large accounts.

The survey also showed that new entrants are gaining marketshare as established carriers are less willing to compete on priceif rates get too low. Over 50 percent of respondents said they areseeing more insurers underwriting the transportation class.

NIP Group included the following lines in its survey:

o Trucking operations

o Messenger/courier services

o School bus contractors

o Airport ground transportation

o Specialized carriers and riggers

o Intermodal carriers

o Ambulance/paratransit

o Bulk transpiration

o Charter/tour bus operators

o Limousine services