Soft Insurance Market

Soft Insurance Market

A period of time during which insurance companies assess low premiums and therefore achieve relatively low profits. A soft insurance market occurs after companies begin to meet their profit goals and are able to loosen their underwriting standards, writing more policies on more clients. It can be easy to obtain insurance during a soft insurance market. However, the possibility exists that insurers may write too many policies, taking losses or at least reducing profits. A soft insurance market is considered a normal part of the business cycle of insurance. See also: Hard insurance market.
Mentioned in ?
References in periodicals archive ?
In the current soft insurance market, smooth policies are cheaper--and available for more pilots and airplanes--than they've been in years.
I keep hearing that there is a soft insurance market.
While willing to retain as much as $2 million, due to the recent soft insurance market, the company has chosen a retention level of $100,000 per occurrence for workers' comp and general liability.
But won't the reality of a soft insurance market with low premiums force you to take a similar call on your offered rates?
The soft insurance market, notwithstanding, he thinks the marketplace has shifted into a self-correcting phase that creates opportunities for smaller, specialty insurers to flourish with a strategy that doesn't rely solely on pricing.
COMPANIES HAVE ENJOYED a soft insurance market for years, but that's coming to an end.
The 2010 Agency Universe Study reflected the combined effect of the recession which began just as the 2008 study was underway, a prolonged soft insurance market, and declining revenues," says Robert Rusbuldt, IIABA president and CEO.
The current weak economy and prolonged soft insurance market, in which all insurers monitor expenses closely, contributes to this hesitancy.
On one hand, the bad economy and soft insurance market have negatively affected agency valuations, resulting in a sluggish market.
Berkley, along with other insurers, has seen its premiums hit by the soft insurance market.
5, citing a soft insurance market and ongoing litigation expenses among its reasons.
Even with the economy in a tailspin and a soft insurance market, there is one area where agents and brokers can find premium and income growth in 2009.