Hard Market: A Double Entendre that Means Work for You
- Topics:
- Enterprise Risk Management
- Tags:
- Business Operations,
- Cancellation,
- Corporate Insurance,
- Finance,
- Financial Planning,
- Insurance,
- Nonprofit Organization,
- Public Entity Risk Institute
- Source:
- Public Entity Risk Institute
FREE Registration is required
Overview: This article gives some historical perspective to the current hard market, helps understand the cyclical nature of the insurance market, and suggests steps that small companies, public entities and nonprofit organizations may employ to prepare for and weather the hard market. Steps being taken to improve underwriting results (and profitability) that are also precursors to a hard market are as follows: class underwriting, line underwriting, restrictive policy terms, geographic restrictions, rate increases, cancellation of producers, cancellation or restructuring of programs, reduction in catastrophe exposure, and wholesale non-renewals. While it is impossible to know how long the current phase of the cycle and the difficult conditions will remain, history indicates that the opportunities of a soft market will return. However, no organization can afford to simply wait out the cycle. Despite the difficulty of sustaining an affordable insurance program for the small business, nonprofit organization or public entity, it is possible and advisable to take steps now that will protect the organization for the long term.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Jan 2002 | Pages: 1
