When inflation is high, the insurance market will harden. This means that not only will premiums increase in price, but policies will be underwritten by insurers more carefully to take on less risk, because like most business owners, insurance companies also don’t like to take unnecessary risks.
During a hard insurance market, insurers may also leave the industry due to bankruptcy or other insolvency. This can leave large companies without coverage in a market where it may be very difficult to find the coverage they need at an affordable price.
Anyone looking for insurance during a hard insurance market needs to be aware that it will be difficult to get the best deal during this time. Rather the company should work to minimize their risk as much as possible with what the insurance company is willing to offer.
Don’t assume that this doesn’t leave room for negotiation however, and a company like Axxima can help you navigate your insurance policy offers during a hard insurance market to ensure you get the policy that is best for your company.