The August 1999 Specialty Article on the trucking market stated that a tightening of this class was in the works. Well, that forecast has come true. The market has indeed tightened in the last year. According to comments received from our survey of markets, indications are that at least 50% of the markets no longer exist. This is normal in the specialty market when "players" jump in at the onset with very little, if any, expertise in that class. They affect pricing downward, create confusion for insureds, and then steal into the night.
Bill McEnery, vice president, Motor Transport Specialists, states that CNA E&S is approaching the trucking insurance market cautiously at this time. "We are growing in a controlled manner by making the right pricing and underwriting decisions. Today's market does give us the opportunity to write new business profitably." McEnery adds that some carriers are re-underwriting their book, exiting segments of the business or increasing rates. "There is quite a bit of uncertainty in this market right now."
McEnery points out that it's a tough go for trucking firms today because their "cost of doing" is up. They face higher fuel costs and a tight labor market. Their insurance costs are going up as well, partly because the business has been under priced in recent years. "We are working to provide both our agents and customers with value-added services such as loss control and claims cost containment programs which will benefit all parties involved in the purchase and provision of trucking coverages," he notes.
The proactive approach to this market from a carrier standpoint is critical. Weekly safety bulletins mailed to the clients, quarterly safety meetings, and hiring of drivers with good driving records will go a long way in maintaining profitable loss ratios. This must be a three-way partnership among client, agent and the insurer.
Everyone reports that capacity is still very high in the marketplace, but that situation can erode. Doug Hathaway, vice president, Swett & Crawford, says, "Capacity remains high and prices are increasing slower than needed for markets that have purposefully under priced their product in the past. Higher fuel costs will force metro carriers to renegotiate shipping contracts and/or push drivers into new routes and commodities where they have little experience. A tougher, but more flexible service standard is needed to help these drivers. Producers must strongly consider placing their book with proven MGAs and carriers that provide adept claim handling and expert underwriting that can keep premiums low for your best accounts."
Tight underwriting is a reality in the trucking market. Some carriers have opted to underwrite their entire book out the door with extremely strict underwriting standards. Other standard carriers said, "Enough is enough" and dropped this class from their portfolio. Still others have decided to say, "We are still a market but we won't play the pricing game."
Gayle Watson, AU, is the senior underwriter of hazardous materials haulers for Freberg Environmental. Watson comments, "Lately, we are seeing more and more operators splitting off from larger trucking firms to form their own companies. We are also seeing a number of larger companies beginning to require their owner/operators to carry their own liability coverage. Consequently, there has been an increase in the number of accounts we have had the opportunity to look at.
"The effects of the marked pressure for rate increases from both the reinsurance and umbrella markets are now being seen. In addition, it appears that several carriers, rather than withdrawing from the market, may be attempting to price themselves out of the market. These rate increases have resulted in accounts being heavily marketed. It is not unusual to get an account from three or four different brokers.
"The information we are getting from our reinsurance carriers is that the trend will continue through the July 1st treaty renewals and on until the trucking market is able to operate profitably," Watson states.
You may have an increase in opportunities to quote trucking business. If you are not working directly with a company, obtain the names of the carriers that the MGA is working with, then don't submit that risk to another MGA with the same carrier. Don't try to "block the market." It will be even more important to secure a complete submission including lost history. Try to give the market ample time to really work on the quote. If your agency has trucking business, it may be a good idea to have a heart-to-heart with the existing carrier to assess what its outlook is going to be. If the account is one with a good loss picture and is a large account, you are probably in a good position. It never hurts to develop a relationship with other markets before you find out that your insurer has withdrawn from that class of business.
This market is in flux. Plan ahead for opportunities if either you have existing trucking risk or can increase revenues with new business.
The following is a list of markets that responded to our survey and indicated that they are a market for trucking risks. Please note what is the target market and states of operation of each listee, if any.
Adriatic Insurance Company
3501 N. Causeway Blvd., Ste. 1000
Metairie, LA 70002
Contact: Joseph E. Taylor
Phone: (800) 535-7291
E-mail: jtaylor@adriaticins.com
Web site: www.adriaticins.com
A surplus lines insurer operating in 37 states and DC offering physical damage limits of $115,000 per vehicle, $150,000 combination and $100,000 per load on motor cargo. They are a market for long to local haul. Motor truck cargo is also available. A rated carriers are utilized to place coverage.
Baldwin Sadler Corporation
654 Enterprise Dr.
Royersford, PA 19468
Contact: Robert A. Baldwin
Phone: (800) 227-9040, Ext. 101
Fax: (610) 792-9200
E-mail: RAB@baldwinsadler.com
An MGA operating in all states except AK, HI, MA and WA offering limits of $1 million on primary and $4 million on excess. Target markets include small fleets, including owner/operators, "for hire" carrying hazardous or non-hazardous commodities on a local, intermediate, or long haul radius. Classes not written include radioactive material carriers, ammunition, and highly volatile substances including explosives. A rated or better carriers include The Hanover, Gulf Insurance, and Lexington Insurance.
Bohrer, Croxdale & McAdoo, Inc.
P.O. Box 2760
Springfield, MO 65801
Contact: Diane Plank, Donna Allen, or Sydney Croxdale
Phone: (800) 779- 2550
Fax: (888) 869-2550
E-mail: frontdesk@bcmins.com
An MGA operating in AR, KS and MO offering limits of up to $5 million. Target market is single to 50 units. CGL, workers compensation, property, and inland marine are available. Various A rated carriers are utilized to place coverage.
Brauer & Associates, Inc.
P.O. Box 20232
Columbus, OH 43220
Contact: Dan Martin or Toni Montoney
Phone: (614) 951-7174
Fax: (614) 451-8810
E-mail: dan@brauerins.com
An MGA operating in the 48 contiguous states offering limits of $500,000/$1,000,000. Physical damage and motor truck cargo also are available. Classes not written include cigarette and liquor haulers. Various rated carriers are utilized to place coverage.
Burns & Wilcox, Ltd.
30833 Northwestern Hwy., Ste. 220
Farmington, MI 48334
Contact: Home office for local branch
Phone: (800) 521-1918
An MGA E&S broker operating in most states; contact local branch. Limits offered are $1 million on primary and $10 million on excess. Physical damage, motor truck cargo and property are available. Target markets vary by region.
Carnegie Insurance Service Corporation
17700 Broadway
Cleveland, OH 44146
Contact: Mark Salsgiver, VP
Phone: (800) 362-2411
Fax: (440) 439-5551
E-mail: cisco@stratos.com
An MGA/E&S broker operating in IN and OH for long haul trucking, offering limits of up to $5 million for most risk; no limit on cargo and physical damage. Classes not written are hazardous material haulers except LPG, gasoline, diesel fuel & fuel oil haulers. A rated or better carriers include Empire Fire & Marine, Gainsco, Lloyd's, and MGA Insurance Company.
Carolina Casualty Insurance Company
P.O. Box 2575
Jacksonville, FL 32203
Contact: J. Madison Macon
Phone: (800) 874-8053
Fax: (904) 363-8098
E-mail: info@carolinacas.com
Web site: www.carolinacas.com
An insurer operating in all states except LA, MA, MI and NY offering limits of $1 million with additional limits available. CGL, cargo, and terminal coverage also written. Contact the insurer for markets prior to submission.
Central Insurex Agency Inc.
800 S. Washington St.
Van Wert, OH 45891
Contact: Kurt Muntzinger, CIC, CPCU
Phone: (800) 736-7131
Fax: (800) 736-7026
E-mail: kurtm@central-insurance.com
A general agent operating in OH offering limits up to $2 million. CGL, cargo, and stop gap also are written. Target markets include non-fleets, non-truckman, local, intermediate, and long haul. Business is place with A+ rated Northland Insurance Company.
CNA E&S
3500 Lacey Rd., Ste. 8000
Downers Grove, IL 60515
Contact: William McEnery
Phone: (630) 719-3291
Fax: (630) 719-3026
E-mail: William.McEnery@cna.com
Web site: www.cna-es.com
An insurer operating in all states on an admitted basis subject to state insurance department approval offering limits of liability up to $1 million. Auto physical damage, cargo, and CGL are written up to $1 million. Property is also available. Coverage is placed with one or more of the CNA member companies.
Crump Insurance Services, Inc./Home Office
7557 Rambler Rd., Ste. 350
Dallas, TX 75231
An MGA/E&S broker.
Office locations include:
Crump Insurance Services, Inc.
188 106th Ave., Ste. 670
Bellevue, WA 48004
Contact: Mike Milchem, Mary Rowley, or Vic Pommerville
Phone: (800) 221-9628
Operating in AK, ID, OR and WA offering limits of $1million on primary with excess available. Cargo, physical damage, and bobtail are also written. A rated or better carriers include American Alternative, Canal Insurance, National Casualty Insurance, Great Divide Insurance, and National Indemnity Insurance Company.
Crump Insurance Services of Memphis, Inc.
1000 Ridgeway Loop Rd., Ste. 200
Memphis, TN 38120
Contact: Lori Beaumont, Ginny Hughett, or Sandra Bailey
Phone: (800) 262-7867
Fax: (901) 684-3818
E-mail: lbeaumont@crump.brkr.com ghughettf@crump.brkr.com sbailey@crump.brkr.com
Operating in AR, IA, IL, KY, MS and TN offering limits of up to $2 million with excess available. CGL, excess cargo, and inland marine are also written. Most risks are considered, including HazMat classes. A rated or better carriers include Canal, Lancer Management, Northland, Gainsco, National Indemnity, Stratford/ Western World, Scottsdale, Special Risk Underwriting/Orion Group, Fireman's Fund, Great American, and St. Paul Surplus Lines.
Crump Insurance Services of Michigan
17630 Laurel Dr. N., Ste. 360 E.
Livonia, MI 48152
Contact: David Leark, CPCU; Richard Frederick, or Sharon Warrow
Phone: (800) 750-8032
Fax: (734) 464-7200
Web site: www.crumpins-michigan.com
Operating in MI offering limits of up to $1million on primary with excess available. Physical damage, CGL, motor truck cargo, and bobtail are also written. Target classes are local, intermediate, long haul and hazardous material haulers. Contact MGA prior for prohibited classes. A rated or better carriers include American Alternative Insurance, Diamond State, and Empire Fire & Marine Insurance companies.
Crump Insurance Services, Inc.
701 South Park St., 5th Floor
Orange, CA 92868
Contact: Roy O. Thomas
Phone: (714) 245-7850
Operating in CA offering limits of up to $1 million. Non-trucking, CGL and garage liability are also written. Hazardous material haulers are not written. A rated carriers or better include Scottsdale, Gainsco, and Special Risk Underwriting Managers.
Delaware Valley Underwriting Agency, Inc.
420 S. York Rd.
Hatsboro, PA 19040
Contact: Rosemarie Stumpf or Deneen Dallago
Phone: (800) 388-0215
E-mail: stumpf@duva.com dallago@duva.com
An MGA/E&S broker operating in DE, KY, MD, NJ, OH, PA, VA and WV offering limits of up to $1 million with higher limits available. CGL, cargo, physical damage, non-trucking liability and excess and umbrella are also written. Target markets include local, intermediate, and long haul trucking risks. Carriers include State National, Canal, MGA Insurance, National Indemnity, Great Divide, Guaranty National, Essex, National Casualty and Lloyd's.
Freberg Environmental Insurance
1675 Broadway, Ste. 2210
Denver, CO 80202
Contact: Gayle Watson or Michael Hill
Phone: (800) 377-4152
Fax: (303) 623-8101
E-mail: Gwatson@feiinsurance.com
Web site: www.feiinsurance.com
An MGA operating in all states except AK, HI, and LA offering limits of up to $5 million. Target markets are hazardous material and waste haulers. Full pollution, CGL and workers compensation are also written. A+ rated Gulf Insurance Company is the carrier.
Gateway Underwriters Agency
735 S. New Ballas Rd., Ste. 130
St. Louis, MO 63141
Contact: Gina Boswell
Phone: (800) 325-7652
Fax: (314) 567-4552
An MGA operating in AR, IL, KS and MO offering limits up to $1 million for all classes except hazardous material haulers. CGL and cargo are also written. The A rated or better carriers include National Indemnity, Oak River Insurance, and Stratford Insurance Company.
HEATH Insurance Brokers
3100 Monticello, Ste. 900
Dallas, TX 75205
Contact: Ted Hosterman, VP, or Jason Dalton, AVP
Phone: (800) 528-5544
Fax: (214) 528-9101
E-mail: thosterman@hibi.com jdalton@hibi.com
An MGA/E&S broker operating in CO, KS, NE, NV, OK and TX offering limits of up to $2 million. Truckmans liability, physical damage, cargo and umbrella are also written. A rated or better carriers include Gulf Insurance and Scottsdale insurance companies.
Insurance Innovators Group
P.O. Drawer 969
Glenside, PA 19038
Contact: Lisa Dent
Phone: (800) 523-6422
Fax: (215) 886-2482
E-mail: lisad@iiigroup.com
Web site: www.info@iiigroup.com
An MGA operating in DE, MD and PA offering limits of $1 million and higher. Target markets include local to long haul, bobtail/deadhead, fuel oil and gasoline haulers. Hazardous material haulers are not written. A rated or better include State National, MGA Insurance, Jefferson Insurance, and Empire Fire & Marine.
Jimcor Agencies
15 Ver Valen St.
Closter, NJ 07624
Contact: Coryn Mastowsi
Phone: (800) 334-0474
Fax: (201) 784-7901
Web site: www.jimcor.com
An MGA/E&S broker operating in all states providing unlimited physical damage and motor truck cargo only. No household movers for cargo coverage. Carriers include Lloyd's, Essex, Fireman's Fund, and Great American, all A rated or better.
G.A. Mavon & Company
10 W. Chicago Ave.
Hinsdale, IL 60521
Contact: Bill Wilson
Phone: (630) 655-2400
Fax: (630) 654-4447
E-mail: bill@mavon.com
A general agent operating in IL and IN offering limits of up to $1 million. Target markets include long haul owner/operator fleet to 50 units, no dumping operations. CGL, down time, physical damage, and motor truck cargo are also written. A+++ rated American Alternative Insurance Corporation is the carrier.
Midlands Management Corporation
3503 NW 63rd St., Ste. 305
Oklahoma City, OK 73112
Contact: Donna Marsh
Phone: (800) 800-4007
Fax: (405) 841-6551
An MGA operating in all states offering limits of up $1 million. Target markets include small to medium long haul accounts, no hazardous material, local/intermediate, or public conveyance. Realm National Insurance is a B+ carrier.
Northland Insurance Company
1295 Northland Dr.
St. Paul, MN 55120
Contact: Web site for MGA in your state
Phone: (800) 237-9334
Web Site: www.northlandins.com
An insurer operating in most states. Target markets include local, intermediate, and long haul of"for hire" accounts. CGL, physical damage, motor trucks cargo, and property is also written. Northland is an A+ rated carrier.
Pennock Insurance, Inc.
Brandywine One
Chadds Ford, PA 19317
Contact: Sandra Piper
Phone: (800) 662-5182
Fax: (610) 358-3449
E-mail: spiper@pennock-ins.net
An MGA/E&S broker operating in DE, MD and PA offering limits as required. Target market is local and intermediate with some long haul. Motor truck cargo is also written. Various A rated carriers are utilized to place coverage.
Premier Transportation Underwriters, Inc.
P.O. Box 33669
Indialantic, FL 32903
Contact: Eddie Williams
Phone: (888) 321-6400
Fax: (321) 726-0586
A wholesale agency operating in most states offering up to $1 million on primary and up to $10 million on excess. Most classes are considered except hazardous material haulers. Various A rated carriers are utilized to place coverage.
Princeton Risk Managers, Inc.
201 Wall St., Research Park
Princeton, NJ 08540
Contact: David Griffith
Phone: (800) 582-7607 inside NJ (800) 776-0099 outside NJ
Fax: (609) 924-9222
An E&S broker operating in NJ, NY and PA writing excess auto liability, motor truck cargo, and physical damage, no long haul auto liability. A rated carriers are Safeco and Lloyd's.
RLI
2200 Century Parkway NE, Ste. 650
Atlanta, GA 30345
Contact: John Williams, Ext.1020 over 30 units Scott Crumbley, Ext. 1019 under 30 units and fewer
Phone: (888) 754-4221
Web site: www.rlitransportation.com
An insurer operating in all states except AR, HI, LA and MA offering limits of up to $5 million and higher if needed. Target markets include most classes except aggregate haulers, waste haulers and cement trucks. Physical damage, motor truck cargo, trailer interchange, CGL, excess and umbrella. RLI is an A rated carrier.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Scott Sackers, Ext. 23; Tony Armor, Ext.17; or Vince Duvall Ext.14
Phone: (800) 752-8402
Fax: (317) 776-6891
Web site: www.roushins.com
An MGA operating in IL and IN offering limits of up to $1 million on primary and up to $4 million on excess. Target markets are local, intermediate, and long haul trucks. A rated or better carriers include American Equity, National Casualty, Scottsdale, Reliant American Group, and Gainsco.
Robert A. Schneider Agency
5620 Smetana Dr., Ste. 350
Minnetonka, MN 55343
Contact: Mary Alyce Slowe
Phone: (800) 862-6038
An MGA operating in IA, MN, ND, SD and WI offering limits of up to $2 million. Most classes are considered; no hazardous material haulers. Physical damage, motor truck cargo, CGL, and umbrella are also written. Carriers include Canal, Empire Fire & Marine, Great Divide, Westport, American Equity, and Wilshire.
Seaboard Underwriters, Inc.
P.O. Box 1478
Burlington, NC 27216
Contact: Flip Hogan, Ext. 202; Libby Smith, Ext. 207; and Elaine Barrow, Ext. 210
Phone: (800) 222-2407
Fax: (336) 229-6977
Web site: www.seaboardunderwriters.com
An MGA operating in all states except LA and the New England states. Limits of up to $5 million are offered. Target markets include local, intermediate, and long haul risk; no hazardous material haulers are considered. Carriers include XL Specialty Insurance, ACE Insurance, Essex, Gulf Insurance, Sirius America, and Frontier.
Swett & Crawford Group
109 South Seventh St., Ste.600
Minneapolis, MN 55402
Contact: Doug Hathaway, VP
Phone: (800) 752-4251
Web site: www.swett.com (for local office)
An MGA operating in most states offering limits of up to $2 million on liability, $50,000 on physical damage, property, and $10 million on umbrella/excess. Occupational accident, CGL, and workers compensation are also written. A rated or better carriers include Northland, Cincinnati Insurance, Canal, Interstate/Orion, Scottsdale, Jefferson, Western World, and National Indemnity.
Transportation Insurance Specialists
158 N. Harbor City Blvd.
Melbourne, FL 32935
Contact: Bill O'Brien or Rod Watson
Phone: (800) 444-8474
Fax: (321) 757-6147
Web site: www.tis-ins.com
An MGA operating in all states except MA offering limits of up to $5 million. Physical damage, CGL, motor truck cargo, property, non-trucking liability, and occupational accident are also written. Target market is long haul trucking risk, no oversized, overweight, or logging is considered. The A rated carrier is Republic Western.
United Brokers, Inc.
P.O. Box 1243
New Albany, IN 47151
Contact: Amy Zettel
Phone: (800) 444-4824
Fax: (812) 949-4015
E-mail: amyz@ubinc.com
Web site: www.ubinc.com
An MGA operating in GA, IN, KY, MO, OH and TN for long haul trucking and all states for HAZMAT/ waste haulers; no sand and gravel haulers are considered. Physical damage, motor truck cargo, bobtail, workers compensation and umbrella/excess are also written.
J.M. Wilson
8036 Moorsbridge Rd.
Portage, MI 49024
Contact: Sandi Fritz
Phone: (800) 677-6110
Fax: (616) 327-4131
IL, MI, MO, and WI
Contact: Jack Rogers
Phone: (800) 388-8178
Fax: (614) 890-6333
NY, OH, PA, and WV
Contact: Chuck Doubler
Phone: (800) 538-4796
Fax: (317) 846-5762
IN
Web site: www.jmwilson.com
An MGA operating in states listed offering limits of up to $2 million. Most classes are considered; no hazardous material haulers. Physical damage, motor truck cargo, CGL, and workers compensation are also written. A rated or better include Northland, Gulf Insurance, Fire & Casualty of Connecticut, National Indemnity, and Legion Insurance. *