Insurers operate in a cyclical market that runs from ‘soft’ to ‘hard’. Soft markets are characterised by lower premium rates, better levels of coverage, flexibility of terms, good investment returns, more availability and stiffer competition among insurers. All these factors present favourable procurement conditions for business owners. In contrast, in a hard market there is less desire for growth, insurers lose their appetite, competition reduces, premiums increase, and terms and conditions of coverage are more restrictive. This environment is challenging to (re)insurers, brokers and business owners alike and something we are experienced at handling. This is fuelled by an estimated £74bn of claims from Covid-19, the recession, and insurers experiencing larger claims, whether it’s due to an increase in fraud or more claims being lodged.
