NU Online News Service, June 3, 11:25 a.m.EDT

While the insurance market for transportation risks is stillsoft, those in the industry are saying it has begun to stabilizeand the tide of new entrants flooding into the market is beginningto slow, according to NIP Group’s first-quarter TransportationInsurance Pricing Survey (TIPS).

“Based on the past quarter’s TIPS results, it seems that surveyparticipants are optimistic that rates have stabilized and arestarting to slowly move higher,” says Richard Augustyn, CEO ofWoodbridge, N.J.-based wholesale broker and program manager NIPGroup.

The survey polled leading transportation insurance brokers,wholesalers and underwriters representing thousands of accountplacements, NIP Group says.

Asked about the overall direction of the market, 37.5 percent ofrespondents say “flat”; 21.9 percent say “hardening”; and 32.8percent say “soft.” In contrast, during the 2010 first quarter, 95percent of sellers surveyed said the market was flat or soft.

For small accounts, respondents were split evenly three ways at33.3 percent on whether premiums have increased, decreased orremained the same compared to the previous quarter.

For medium accounts, 35.9 percent say premiums have decreased,while an equal number says premiums are unchanged. Another 28.3percent say premiums have increased.

On large accounts, 46.5 percent say they are seeing decreases,while 35.6 percent say premiums are unchanged and 20.9 percent saythey are seeing increases.

Just under 47 percent say the number of insurers in thetransportation class has remained the same, and almost 19 percentsay the number has decreased. More than 34 percent say there aremore insurers in this space.

Segment results provided in the most recent NIP survey give afew more indications of market hardening. For example, in classeslike “specialized carriers of heavy equipment and riggers,” 42.5percent of producers and underwriters surveyed say premiums rosebetween 1- and 10 percent in the first quarter. A year ago, only 5percent of respondents reported increases, while 63 percent saidspecialized-rig premiums fell during first-quarter 2010.

Beyond its high-level summaries of overall opinions of marketconditions and insurance capacity, NIP Group, in its reports forvarious quarters dating back to midyear 2008, graphically revealsbands of premiums changes indicated by survey respondents (“down1-10 percent,” “no change,” “up 1-10 percent,” up 10-20 percent,”etc.) for 10 different segments

For all individual transportation segments, the number ofrespondents saying that premiums are remaining flat or increasingoutnumbered those saying premiums decreased. The segments includetrucking; intermodal trucking; specialized carriers and riggers;bulk transportation; messenger and courier services; charter, tourand transit buses; school buses; limousines; ambulances andmedical; and airport ground transportation.

Based on the most recent quarter’s results, the “messenger andcourier services” segment and the “charter, tour and transit busoperators segment” showed the most evidence of harder marketconditions.

For the messenger/courier segment, nearly 90 percent ofrespondents reported premiums unchanged or rising, with 5 percentindicating double-digit hikes. NU’s historical records of prior NIPreports reveal that in first-quarter 2010, only 40 percent ofsurvey participants said courier-premiums were unchanged orrising.

In the charter bus segment, 75 percent of sellers now reportflat or increasing premiums, compared to less than 30 percent lastyear.

Detailed first-quarter 2011 results for other account sizes,segments and for various coverages (auto liability, physicaldamage, cargo, workers’ comp and umbrella) are summarized in thefull report which is available for download at: http://www.nipgroup.com/corporate/tips-results-q1-2011.