Selling property in a soft market
can be stressful for homeowners.
Even in a soft market
, there has to be a proper level of diligent underwriting.
"There are differing views on how long and deep this pending soft market
cycle may last," said Kerr.
Further, Nomura expects that the availability of cheap reinsurance will exacerbate the fight for market share at the primary level, leading to a traditional soft market
* The Situation: Because market prices can swing as much as 50% in hard or soft markets
, it's an ideal time for companies to re-evaluate their total cost of risk.
With the soft market
, however, with declining or flat brokerage revenues, multiples have declined from three years ago.
The psychology of the preceding soft market
played a role in the lates changes, said one executive.
If you have a deductible or self-insured retention, a soft market
often affords a risk manager time to catch his or her breath and review service providers such as third party administrators (TPAs).
This type of analysis can be especially effective in a soft market
because insurers are more willing to make changes to plug potential gaps in coverage when they are competing for your business.
Commercial rates fell in December 2014 -- sending out warning signs for the return of a soft market
-- while personal rates moderated during the same period, according to a recent report from MarketScout.