What is the definition of Property/Casualty Insurance Cycle?
The Property/Casualty Insurance Cycle refers to the business cycle in the insurance industry where there are periods of soft market and hard market conditions.
In a soft market, insurance coverage is widely available and premiums are more or less steady or decreasing. The soft market is a buyer's market. In a hard market, there is a marked increase in premium because insurance coverage is less available and it becomes a seller's market.
There are a variety of factors that cause the property/casualty insurance cycle. These include the state of the economy (downturns and upturns), changes in the claim reserve dollars of insurance companies, as well as catastrophic events. The law of supply and demand comes into play. Demand is linked to the needs and appetite of insurance buyers, while supply is linked to the policyholder surplus.
The cycle can vary from state to state.
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- Proposition 103
- Purchasing Group
- Pure Endowment
- Pure Life Annuity
- Rate
- Rate Regulation
- Rated Policy
- Rating Agencies
- Rating Bureau
- Real Estate Investments
- Property/Casualty Insurance
- Proof of Loss
- Professional Liability Insurance
- Product Liability Insurance
- Product Liability
- Private Placement
- Private Mortgage Insurance
- Prior Approval States
- Prime Rate
- Primary Market