Transportation Industry Sees High Insurance Rate Increases in December
MarketScout released its December insurance rate results, which showed an average rate increase for property/casualty insurance at 5%, with transportation and commercial auto among the leading industry increases at 6%. Manufacturing, contracting and the service industries also led with 6% increases. Within the industries evaluated, small accounts (up to $25,000) were up 6%, medium accounts ($25,0001-$250,000) were up 5% and large accounts ($250,001-$1 million) were up 4%. MarketScout is an insurance distribution and underwriting company headquartered in Dallas.
December’s results, for the most part, are in line with the past year where we have seen rate increases spread across all major market segments in the transportation industry. This is also in sync with previous survey results from other sources that have shown premium increases in different coverage lines for the following segments within the transportation industry: trucking, messenger/courier services, school bus contractors, specialized carriers and riggers, intermodal carriers, ambulance/paratransit, charter/tour bus operators, limousine services, among others.
The shift in insurance rates is a turnaround from the last several years where the transportation industry, like many others, continued to experience a soft market as a result of too much supply and not enough demand. During the last several quarters, underwriting guidelines and terms have tightened, rate firming is occurring, and some insurers have exited the space. This provides opportunities for new business in this segment.
At Caitlin-Morgan we have been steadfast in writing transportation insurance and providing our agents and their customers with strong markets and products and competitive pricing. We can write everything from Property and Equipment Breakdown to Physical damage, Motor Truck Cargo, Contractor’s Equipment, and an Installation Floater through to Rigger’s Liability and Warehouse Legal Liability among other key coverages. Give us a call at: 877.226.1027.