Kick Start to the Return of the Hard Market

Industry experts have claimed that the recent decision taken by the Irish Financial Regulator’s to stop Quinn Insurance writing new business in the UK could kick-start a return to a hard market.

What is a hard market?

In the insurance industry, underwriting philosophies fluctuate between periods called the hard market and the soft market. The hard market is the period during which underwriting standards are very tight and the rates are high. Normally the hard market closely follows a soft market period during which the underwriting standards had been soft and the price or rates are very low, resulting in substantial underwriting losses. The cycle swings back and forth between the two cycles and bounces between soft underwriting with low rates and heavy losses, to the hard market with subsequent tightening of standards and dramatic increases in price.

As a pro-active broker we seek out the best price for our clients and will continue to do so to try and nullify this predicted change in the market.

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Club Insure Ltd

Club Insure Ltd