The trucking and warehousing niche market provides some $9.5 billion in commercial lines premiums in the United States and a loss ratio of 58.6%, according to data compiled by IMR (Insurance Market Research) Corp., one of the PLP Companies. The healthy loss ratio, combined with the strong premium potential, makes this an attractive market.
There are some 119,206 firms involved in trucking and warehousing in the United States. They employ nearly 1.7 million people. Commercial auto represents the largest single line, accounting for 54.6% of total commercial premiums written in this niche market. Inland marine is next, with 19.6%, followed by workers compensation (17.8%), general liability (5.2%), and commercial property (2.8%).
"This niche provides nearly 7.3% of total commercial lines premiums written in the United States with two-thirds of that residing in small and medium-sized accounts, prime targets for independent agents," according to Lindsay Smith, president of IMR. "Nearly $6.4 billion in commercial lines premiums are generated from the 117,127 small and medium-sized businesses." There are 102,894 small businesses (those employing fewer than 20 people) in this niche area, providing $2.88 billion in premium for an average of just over $28,000 per account. There are 14,233 medium-sized businesses (20-99 employees) accounting for $3.49 billion in premium for an average of $245,325 per account. The 1,857 large accounts (100-499 employees) provide $1.66 billion in premium for a $892,333 average premium per account, and the 222 jumbo accounts (those employing 500 or more employees) provide $1.46 billion in premium for an average of $6.57 million per account.
Trucking and warehousing firms provide $2.33 billion in premium in the Rough Notes Northeast region. The loss ratio is 59.7%. The largest subgroup in this category is trucking and courier services, which accounts for $2.23 billion and a loss ratio of 60.1%. General warehousing and storage facilities is next, providing $83.9 million in premium and a loss ratio of 50.0% in the Northeast. It is followed by refrigerated warehousing and storage facilities ($14.0 million, 50.2%); farm product warehousing and storage facilities ($1.7 million, 45.4%); and trucking terminal facilities ($327,905, 79.6%).
There are 19,390 firms engaged in trucking and warehousing in the region, employing 289,535 people. There are 16,622 small (1-19 employees) trucking and warehousing firms in the Northeast, providing $708.7 million in premium for an average of $42,640 per account. The 2,450 medium-sized firms (20-99 employees) account for $875.6 million for an average of $357,400; the 278 large accounts (100-499 employees) provide $324.7 million in premium for an average of $1.17 million; and the 40 jumbo accounts (500 or more employees) provide $421.6 million in premium for an average of $10.54 million per account.
Information on this niche market is available from IMR at 39 E. Hanover Ave., Morris Plains, NJ 07950, or call (201) 898-4706. *
©COPYRIGHT: The Rough Notes Magazine, 1997