Soft Insurance Market

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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.
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CHS financing, insurance services and hedging businesses, recorded under Corporate and Other, reported slightly lower earnings for the first quarter of fiscal 2010, attributed in part to reduced market volatility, soft insurance markets and low interest rates.
It said growth had been achieved against a background of continuing soft insurance markets.
This has produced one of the industry's longest soft insurance markets, and no end is in sight.