Soft Insurance Market

(redirected from Soft Insurance Markets)

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 ?
Most soft insurance markets occur in times of economic expansion when interest rates are fairly high and insurers can earn interest income by investing premiums before they have to be handed over to pay claims.
It said growth had been achieved against a background of continuing soft insurance markets.
During soft insurance markets, coverage is widely available at relatively low prices.