Trucking and warehousing

Rough Notes, Oct 1999

Niche produces large premiums per account

Trucking and warehousing represents one of the largest niche markets in the commercial insurance business, providing some $9.4 billion in premiums written, or 7.4% of total commercial insurance premiums written in the United States. The loss ratio is 61.8%.

"There are 122,934 trucking and warehousing companies in the United States, employing some 1.84 million people," notes Lindsay Smith, president of IMR (Insurance Market Research) Corp. "The majority (98.2%) of these businesses are small or medium in size and provide 65.7% of the premiums, making them important targets for independent agents. The average premium per account is relatively high, making this an attractive and highly competitive market."

There are 106,035 small (employing fewer than 20 people) trucking and warehousing firms in the United States which account for $2.78 billion in premium for an average premium of $26,260 per account. There are 14,658 mediumsized accounts (20-99 employees), providing $3.39 billion in premium for an average of $231,445 per account. The 1,981 large facilities (100-499 employees) account for $1.69 billion in premium and an average of $852,540 per account. The 260 jumbo accounts (over 500 employees) provide $1.54 billion in premium for an average of $5.92 million per account.

These businesses provide $1.82 billion in premium in the Rough Notes Midwest region. The loss ratio is 61.7%. There are 24,675 trucking and warehousing firms in the Midwest, employing 390,333 people. The 21,237 small firms (those employing fewer than 20 people) account for $508.9 million in premium for an average of $23,960 per account. The 2,931 medium-sized accounts (20-99 employees) provide $616.8 million in premium for an average of $210,435 per account. The 447 large companies (100-499) account for $358.4 million in premium for an average of $801,790 per account. The 60 jumbo accounts (over 500 employees) provide $334.5 million in premium for an average of $5.58 million per account.

Trucking and courier services represent the largest subgroup in the Midwest, with $1.76 billion in premium and a loss ratio of 62.0%, followed by general warehousing and storage ($30.1 million; 51.7%); special warehousing and storage, not elsewhere classified ($16.9 million; 55.2%); refrigerated warehousing and storage ($9.6 million; 48.9%); farm product warehousing and storage ($1.46 million; 45.8%); and trucking terminal facilities ($215,664; 77.4%).

Information on this and other niche markets is available from IMR by calling (888) 237-7066.