A Global Insurance Hard Market
12 August 2020
Recent natural disasters and the unprecedented pressures resulting from COVID-19 have resulted in the global insurance market currently experiencing a ‘hard market’.
A hard market is the upswing in a market cycle, when premiums increase and capacity for most types of insurance decreases. This can be caused by a number of factors, including falling investment returns for insurers, increases in frequency or severity of losses, and regulatory intervention deemed to be against the interests of insurers.
- Business Insurance Magazine
Steve Halbert, Managing Director of Austral Risk Services explains, “All the industry experts are predicting rate increases for a minimum of two years as the industry experiences both increased numbers of claims and an uncertain future for global financial markets. What this means for our clients is that some insurance cover is very difficult to place – and we are experiencing rate increases across the board.”
“The good news is that our clients who are diligent with their risk management programs are viewed favorably by underwriters. We also believe we are experts at placing difficult risks and we’re still finding cost effective solutions for our clients even in this difficult market.”
What steps can you take
- We recommend talking to your insurance broker early about your business insurance renewals so there is enough time to find the right solution to meet your business needs.
- Please advise your insurance broker of any business changes so they have all the right information available when speaking with the underwriters.
- Advise your broker of all risk management processes you have in place.
Austral Risk Services are experts in risk management and business insurance. To speak with one of our experienced brokers, please contact us here.