Hard Insurance Market

Hard Insurance Market

A period of time during which insurance companies are able to assess high premiums and therefore achieve high profits. A hard insurance market may occur after a disaster, which enables insurers to tighten their underwriting standards and therefore write fewer policies on lower risk clients. This contributes to their profitability. However, it may be difficult to obtain insurance during a hard insurance market. It is considered a normal part of the business cycle of insurance. See also: Soft insurance market.
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Businesses concerned about the impending hard insurance market are taking risks when seeking coverage, and as a result, they are not getting what they want, Lindberg said.
The 1980s hard insurance market impressed upon boards and executive management the need to control risks encroaching on their organization's bottom line.
For more information on setting up a captive insurance company, see "Implications and Opportunities in the Hard Insurance Market," beginning on page 49 of the October 2003 issue of ASSOCIATION MANAGEMENT.
IN TODAY's hard insurance market, few D & O insurers will provide more than $20 million in coverage to one company.
Some of these organizations have lost their insurance coverage in the current, hard insurance market.
During the last 18 to 24 months, amid a hard insurance market and regulatory actions in response to corporate scandals, several of the CEOs in the insurance industry changed.
Continued margin erosion, against the backdrop of a hard insurance market, high fuel prices, and heightened security costs of our post-9/11 world, will continue to force marginal carriers to exit the business.
He added that the survivors in the hard insurance market will be "those who bring more value-added to the table, the ones who prove to their companies they have a true worth in hard times.
This article provides a historical perspective on the hard insurance market, using lessons from the past to guide local governments through the current crisis.
The hard insurance market and an expanding world of perils prompted risk managers to increase their spending on loss control last year in the face of a slumping economy and tight corporate budgets, according to the results of a survey by Chubb Corp.
When asked about long-term care providers' current interest in possible "alternative markets," Colburn responded, "Whenever a hard insurance market exists, we see many captives, RRGs (risk retention groups), etc.