What is the definition of Hard Market?
The Hard Market refers to the state of the insurance market where premiums are high because insurance coverage is in short supply.
A hard market may refer to the entire insurance industry in that area or to a certain line of coverage. A hard market is characterized by unpredictable carrier movements, where insurance companies decide not to operate in the area or not to offer certain lines of coverage. Another sign would be that there are increases in premiums that are not related to the loss experience for that risk. There may be also additional restrictions and exclusions for a certain type of coverage.
All these result in clients finding it hard to get coverage and they lose some of their negotiating powers.
Hard markets and soft markets may shift from one to another, since the insurance market (especially the casualty and property market) is cyclical.
| Not a bit | Very useful |
- Homeowners Insurance Policy
- House Year
- Hurricane Deductible
- Identity Theft Insurance
- Immediate Annuity
- Income-Date
- Income Protection Insurance
- Incontestability Provision
- Increasing Term Life Insurance
- Incurred But Not Reported Losses (IBNR)
- Hacker Insurance
- Gun Liability
- Guaranty Fund
- Guaranteed Replacement Cost Coverage
- Guaranteed Renewable Policy
- Guaranteed Living Benefits
- Guaranteed Insurability (GI) Benefit
- Guaranteed Income Contract (GIC)
- Guaranteed Death Benefit
- Guarantee Period