The Insurance Hard Market: What’s Going On?

If you’ve noticed your insurance premiums creeping up, you’re not alone. We’re currently in a hard market, which means that, overall, insurance carriers are tightening up their policies and increasing rates across the board.

This shift is due to a combination of economic factors and an increase in costly claims across various industries. Here are some of the ways carriers are responding in this environment:

• Increased Premiums: Rates are going up for most policyholders as carriers adjust to the higher frequency and cost of claims. This means that even if you have a good claims history, you may still see an increase.

• Closer Policy Scrutiny: Carriers are evaluating policies more rigorously, with a focus on high-risk areas. They’re analyzing business operations, looking at policy details, and making sure coverage reflects the actual risk.

• Increased Audit Frequency: To ensure policy accuracy, many carriers are increasing audits, particularly for high-value or complex policies. These audits are designed to confirm that coverage matches the current value and risk associated with your assets and operations.

• Tighter Underwriting Standards: Underwriting depts are paying closer attention to details and may even require additional documentation or risk assessments to fully understand the scope of your operations.

I know these can be frustrating to deal with. The good news is that my team and I are just a phone call away to help guide you through these challenge should they arise for you.