Hard vs Soft Insurance Market


Insurance is a cyclical industry and it’s referred to as being a soft or hard market But what drives that cycle? Simply, its driven by whether or not insurance carriers are as profitable as they’d like to be losses, investments, interest rates and the regulatory environment all play a part in that profitability The characteristics of soft and hard markets are In a soft market there are a lot of insurance companies competing for business In a hard market there is a high demand but reduced supply In a soft market insurance companies relax their underwriting standards and coverage is widely available In a hard market underwriting standards Are strict and companies issue a limited number of policies In a soft market Underwriters are generally flexible and willing to negotiate broader coverage terms. In A hard market insurance companies are typically unwilling to negotiate terms And finally In a soft market premiums are generally low (to Luna) right? And In a hard market premiums are high Knowing whether its a soft insurance market or hard or somewhere in between is where an experienced broker comes in Click on the link to visit RPS Knowledge Its full of valuable content from the industry’s best and brightest Thanks for watching !

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