WOODBRIDGE, N.J. Insurance premiums for tour-and-charter bus operators drifted lower during the third quarter of this year, according to the Transportation Insurance Pricing Survey conducted by NIP Group.

Intensifying competition and a soft insurance market kept bus industry rates from rising during the three months ended Sept. 30, the survey by the specialized business insurance and risk management intermediary indicated.

Nearly 42 percent of motorcoach operators surveyed felt that premiums were decreasing by 1 to 10 percent during the quarter, with 25 percent indicating rates were declining by 10 to 20 percent, and just under 17 percent who believed rates were dropping by 20 to 30 percent.

Just over 16 percent of operators thought there was no change in rates during the third quarter.

Among school bus contractors, 36 percent thought rates were declining by 1 to 10 percent and a like percentage indicated rates were sliding by 10 to 20 percent. Much smaller numbers - 7 percent -- believed rates were dropping by 20 to 30 percent or were not changing.

Within the limousine segment, 33 percent believed rates were down 1 to 10 percent and 33 percent suggested rates were declining 10 to 20 percent.

Worker compensation rates, however, were somewhat firmer than auto liability premiums in the ground transportation industry during the third quarter, with 46 percent of those surveyed indicating rates were down 1 to 10 percent, but nearly 42 percent believing rates were either flat or going up by 1 to 10 percent.

When asked for their overall opinion of the transportation insurance market, 44 percent said it was soft, while 36 percent indicated the market was flat or unchanged.

"TIPS results indicate that the market has reversed direction and is softer now compared to (the second) quarter," said Richard Augustyn, CEO of NIP Group.

"Nearly all signs of rates leveling off have been replaced by signs of intensifying competition. This change in direction is not what we were expecting based on last quarters results. We will continue to monitor TIPS results to see how this plays out during the key January renewal period."