The Coming of the Hard Market: Avoiding Higher Insurance Premiums
Analysts have been predicting a turn from our existing soft insurance market to a hard market, characterized by higher insurance premiums, steady rate increases and increased difficulty in obtaining certain types of insurance.
The aftermath of many catastrophic natural disasters, in conjunction with the continued economic uncertainty, has insurers and reinsurers posting their worst financial results in years. Analysts now predict that these events will likely trigger higher property premiums in 2012, followed closely by increases in casualty pricing.
Increasing insurance costs are a worrisome proposition to individuals and businesses that are already faced with a sluggish economy. Carriers will begin to underwrite much more selectively, favoring buyers that have strong management, financial stability, aggressive claims management and a commitment to loss prevention. Now is the time to position your business as Best in Class, so that when insurers do become more selective, your risk is at the top of their list.
Through a detailed risk assessment, a HUB insurance specialist can help you identify how you can better position your company to achieve Best in Class status. Implementation or updating risk control procedures, claims management strategies, and risk tolerance reviews are a few ways we can assist.
Tags: commercial, hard market
