What is a hard insurance market?

February 06, 2024

A hard insurance market refers to a period in the insurance industry characterized by high premiums, limited coverage availability, and stringent underwriting standards. During a hard market, insurance companies typically experience reduced profitability, leading them to raise premiums and tighten their terms and conditions for coverage. This can be driven by various factors such as an increase in claims frequency or severity, reduced investment returns, catastrophic events, regulatory changes, or other economic factors.

In a hard insurance market, customers often find it challenging to obtain affordable insurance coverage, particularly for high-risk or specialized areas. This can impact businesses, individuals, and even entire industries, as they may struggle to secure the necessary coverage to protect against risks.

Insurers may also become more selective about the risks they are willing to underwrite, leading to increased competition among customers for coverage and potentially leaving some individuals or businesses uninsured or underinsured.

At McDaniel Insurance Agency we have experience in working through a hard market.  We have strategies we can put in place on your behalf for your business or personal needs.  Reach out to our agency for your home, auto and business insurance needs.  We can be reached by calling or texting 502.909.0920.