What is an “Insurance Hard Market”

We are in an “insurance hard market“. In simple terms, a hard market is when more carriers decline or restrict insurance offerings. Characteristics are dramatic premium increases; underwriting restrictions increasing and more binding suspensions on certain products or in targeted geographic locations.

Factors contributing to a hard market may include:

  • Economic downturn/uncertainty.
  • Financial market volatility.
  • Shrinking insurance capital/decreased competition.
  • Catastrophic events / Increased claim activity.
  • Global events (e.g., pandemic, climate change, etc.).

Catastrophic losses caused by natural disasters like hurricanes, earthquakes, and wild fires can generate huge property insurance claims. Other events may lead to increased claim trends impacting other lines of business such as Covid-19, large litigation payouts, or increase distracted driving incidents.

General economic conditions can also affect a carrier’s ability to write new policies. During an economic downturn, businesses may purchase less coverage or have lower exposures. Companies may experience a decrease in revenue and implement layoffs causing a decrease in premium to the carrier. In addition, this environment generally yields low-interest rates, which reduce insurers’ investment income.

This is the time when it is very important to partner with an advisor that 1) can help you navigate this hard market 2) has relationships with underwriters 3) employs new ideas to help your business thrive and mitigate risks over the next couple years.

When the market begins to harden, it is critically important to have a strong insurance broker on your side. They will be able to help you to: assess appropriate coverage levels for your business, review claims history, identify optimal carrier partnerships, and. implement risk management and training programs. As an added value, they can also create a marketing strategy that would help mitigate the impact of the hard market conditions so that you are able to retain current terms and conditions while managing any potential premium increases.

Safe Harbor Insurance Advisors would love the opportunity to learn more about your goals. We 1) review each clients exposure, 2) build a tailored risk mitigation plan for the next 1-5 years 3) create checks throughout the year to make sure we are on course. Lowering risks lowers costs, improves employee moral, improves production, increases company brand name and much more.

Let’s set a time to speak. Feel free to give us a call at (803) 386-1885 or visit schedule at to speak HERE.

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Are you ready to save time, aggravation, and money? The team at Safe Harbor Insurance Advisors is here and ready to make the process as painless as possible. We look forward to meeting you!