{"portalId":61352,"siteId":null,"id":12234057862,"slug":"articles/hard-vs.-soft-insurance-markets-explained","contentTypeId":null,"contentGroupId":952267656,"campaign":null,"categoryId":3,"state":"PUBLISHED","publishDate":1566224619000,"created":1566221644847,"updated":1649792694899,"templatePath":"","name":"<span id=\"hs_cos_wrapper_name\" class=\"hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text\" style=\"\" data-hs-cos-general-type=\"meta_field\" data-hs-cos-type=\"text\" >Hard vs. Soft Insurance Markets Explained (with Video!)</span>","mabExperimentId":null,"archived":false,"authorName":null,"deletedAt":0,"freezeDate":1566224619000,"processingStatus":"PUBLISHED","previewKey":"dUXAacSZ","abTestId":null,"createdById":7915797,"updatedById":7915797,"domain":"","resolvedDomain":"www.frontrowinsurance.com","legacyId":null,"performableGuid":null,"isDraft":false,"subcategory":"normal_blog_post","abStatus":null,"blueprintTypeId":0,"folderId":null,"analyticsPageId":"12234057862","flexAreas":{},"widgetContainers":{},"widgets":{"name":{"body":{"title":"Hard vs. Soft Insurance Markets Explained (with Video!)"},"id":"name","name":"name","type":"text","label":"Title"},"module_15965216980304":{"body":{"wrap_field_tag":"div","path":"/Coded files/Custom/blog/FrontRow2014/Basic Rich Text Box for Blog","definition_id":null,"module_id":33156769794,"smart_type":"NOT_SMART","field_types":{"add_content":"richtext","enable_rich_text_module":"boolean"},"type":"module","tag":"module","smart_objects":null},"css":{},"child_css":{},"id":"module_15965216980304","name":"module_15965216980304","type":"module","order":5,"label":"Basic Rich Text Box for Blog","smart_type":null,"styles":{},"module_id":33156769794},"module_156398965931111":{"body":{"path":"/Marketplace/HubSpot/Team_Member/Team Member","widget_name":"Team Member","definition_id":null,"wrapping_html":"","module_id":8696351,"per_widget_wrapper_html":"","smart_type":"NOT_SMART","type":"module","tag":"module","smart_objects":null},"css":{},"child_css":{},"id":"module_156398965931111","name":"module_156398965931111","type":"module","order":9,"label":"Team Member","smart_type":null,"styles":{},"module_id":8696351,"deleted_at":1649437056074},"module_15960847531069":{"body":{"wrap_field_tag":"div","path":"/Coded files/Custom/blog/FrontRow2014/Blog Subscribe New Module 2020","definition_id":null,"module_id":33051772119,"smart_type":"NOT_SMART","field_types":{"add_form":"form","add_form_title":"text","enable_form":"boolean"},"type":"module","tag":"module","smart_objects":null},"css":{},"child_css":{},"id":"module_15960847531069","name":"module_15960847531069","type":"module","order":4,"label":"Blog Subscribe New Module 2020","smart_type":null,"styles":{},"module_id":33051772119,"deleted_at":1649437056074},"post_body":{"body":{"html":"<h1>Hard vs. Soft Insurance Markets Explained</h1>\n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<p><span><br><a href=\"/film-production-insurance?\" rel=\" noopener\">FILM PRODUCTION INSURANCE</a><br></span><a href=\"https://shortshoot.frontrowinsurance.com/\" rel=\" noopener\"><span>SHORT SHOOT INSURANCE FOR FILMMAKERS<br></span></a><a href=\"https://digigearinsure.frontrowinsurance.com/\" rel=\" noopener\"><span>EQUIPMENT INSURANCE FOR FILMMAKERS - DIGIGEAR</span></a></p>\n<!--more-->\n<p>What exactly is the difference between a hard and soft insurance market?</p>\n<p>A “hard” market is characterized by a high demand for insurance coverage and, therefore, a reduced supply. Payouts may have increased and profits may have declined. As a result, insurance companies are less inclined to take on new business. The requirements to obtain insurance are stricter and premiums are more expensive.</p>\n<h2>Classic characteristics of a <strong>hard market</strong> include:</h2>\n<ul>\n<li>Higher insurance premiums.</li>\n<li>More stringent underwriting criteria.</li>\n<li>Reduced capacity, which means insurance carriers offer less coverage or limits.</li>\n<li>Reduced competition among insurance carriers.</li>\n</ul>\n<p>During a “soft” market, there is much competition between companies. Premiums are stable, if not falling. It’s fairly easy to get coverage for all kinds of risks. As someone looking to buy insurance, you may have a variety of options from which to choose and underwriting rules are less stringent.</p>\n<h2>Classic characteristics of a <strong>soft market</strong> include:</h2>\n<ul>\n<li>Lower insurance premiums.</li>\n<li>Relaxed underwriting criteria.</li>\n<li>Increased capacity, which means insurance carriers write more policies and higher limits.</li>\n<li>Increased competition among insurance carriers.</li>\n</ul>\n<p>As of Summer 2019, a hard market is expected in Canada over <em>at least</em> the next 12 months. We’re already seeing rating increases, especially on commercial property. As an insurance customer, then, you may be wondering, <em>what is the reason for such price increases?</em> Well, the insurance market is inherently cyclical and has “corrections” that involve premium price increases. Prices are rising for a number of reasons, including an increase in weather-related claims and auto insurance claims. Low interest rates are also a contributing factor.</p>\n<p>We’re in a data-driven hard market today. With all the easily accessible data now available, insurance companies can pivot faster than ever before. In commercial lines, for example, insurers are getting out of different lines of business faster than in prior years. Once they see losses growing in one area, they will quickly shift out of that line of business. This also contributes to a hard market.</p>\n<p>In Canada, we had been in a soft market for, roughly, the past seven years. There had been virtually no rating increases (including simple inflationary increases) for many years. There has also been some capacity pulled out of the broader insurance market – eight Lloyd's of London syndicates shut down at the end of 2018, for example.</p>\n<p>In a July 2019 <em>Canadian Underwriter</em> interview, speaking on reasons for these price increases, Albert Benmichol, CEO of AXIS Capital said, “We believe the industry is appropriately reacting to loss trends that have deteriorated over the last few years and have exacerbated the negative impact of several years of price declines. We believe that pricing action will continue into 2020 and perhaps longer.”</p>\n<p>Nevertheless, even in a hard market, rest assured that at Front Row, we remain committed to offering customers the best price for the best coverage. Our size gives us leverage with the insurance companies that we use to benefit you.</p>\n<p>&nbsp;</p>\n<h3>References:</h3>\n<ul>\n<li><span style=\"font-size: 16px;\"><a href=\"https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/\">https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/</a></span></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.insurancehotline.com/what-is-a-hard-market/\" style=\"font-size: 16px; background-color: transparent;\">https://www.insurancehotline.com/what-is-a-hard-market/</a></li>\n<li><a href=\"http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html\" style=\"font-size: 16px; background-color: transparent;\">http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/</a></li>\n</ul>"},"id":"post_body","name":"post_body","type":"rich_text","label":"Blog Content","deleted_at":1649437056074}},"sections":{},"views":0,"ctaViews":null,"ctaClicks":null,"tmsId":null,"widgetcontainers":{},"screenshotPreviewUrl":"https://cdn2.hubspot.net/hubshot/22/04/12/9092537e-9124-4364-98ff-d02c01c20f87.png","screenshotPreviewTakenAt":1649792695050,"language":"en","resolvedLanguage":"en","translatedFromId":null,"translations":{},"dynamicPageHubDbTableId":null,"dynamicPageDataSourceType":null,"dynamicPageDataSourceId":null,"businessUnitId":0,"portableKey":null,"errors":[],"position":null,"featuredImageLength":0,"upsizeFeaturedImage":false,"publishedByName":null,"publishedByEmail":null,"userPerms":[],"teamPerms":[],"visibleToAll":null,"contentAccessRuleTypes":[],"contentAccessRuleIds":[],"hasContentAccessRules":false,"absoluteUrl":"https://www.frontrowinsurance.com/articles/hard-vs.-soft-insurance-markets-explained","liveDomain":"www.frontrowinsurance.com","blogAuthorId":9474946913,"analytics":null,"tagList":[{"id":949708809,"portalId":61352,"name":"Entertainment Insurance","slug":"entertainment-insurance","description":"","created":1401901718000,"updated":1401901718001,"deletedAt":0,"categoryId":0,"contentIds":[],"language":null,"translatedFromId":null,"translations":{},"cosObjectType":"TAG","label":"Entertainment Insurance","cdnPurgeEmbargoTime":null}],"blogAuthor":{"portalId":61352,"id":9474946913,"created":1557244191140,"updated":1557244191140,"deletedAt":0,"fullName":"Grant Patten","email":"grant@frontrowinsurance.com","userId":null,"username":null,"slug":"grant-patten","language":null,"translatedFromId":null,"name":"Grant Patten","translations":{},"bio":"Grant Patten - VP, Marketing","website":"","twitter":"","facebook":"","linkedin":"","avatar":"","gravatarUrl":"https://app.hubspot.com/settings/avatar/9751f803d54c2340cccdf5025adc9aa4","twitterUsername":"","hasSocialProfiles":false,"cosObjectType":"BLOG_AUTHOR","label":"Grant Patten","displayName":"Grant Patten","cdnPurgeEmbargoTime":null},"previousPostSlug":"articles/auto-insurance-vs.-wedding-insurance","previousPostName":"Auto Insurance vs. Wedding Insurance – Comparison and Contrast","previousPostFeaturedImage":"https://cdn2.hubspot.net/hubfs/61352/blog-image-uploads/weddings/Auto-vs.-wedding-banner-forweb.jpg","previousPostFeaturedImageAltText":"Auto-vs.-wedding-banner-forweb","nextPostSlug":"articles/disgrace-insurance-in-the-film-industry","nextPostName":"Disgrace Insurance in the Film Industry: A Growing Concern","nextPostFeaturedImage":"https://cdn2.hubspot.net/hubfs/61352/blog-image-uploads/disgrace_1011083695-300x175.jpg","nextPostFeaturedImageAltText":"Disgrace Insurance in the Film Industry: A Growing Concern","afterPostBody":null,"parentBlog":{"id":952267656,"portalId":61352,"siteId":0,"name":"The Front Row View (entertainment insurance blog)","categoryId":3,"deletedAt":0,"created":1401900293000,"createdDateTime":1401900293000,"updated":1650089754719,"updatedDateTime":1650089754719,"language":"en","translatedFromId":null,"domain":"","resolvedDomain":"www.frontrowinsurance.com","state":null,"absoluteUrl":"https://www.frontrowinsurance.com/articles","liveDomain":"www.frontrowinsurance.com","translations":{"fr":{"id":2471031463,"language":"fr","masterId":952267656,"name":"The Front Row View (entertainment insurance blog)","absoluteUrl":"https://www.frontrowinsurance.com/fr/blogue","slug":"fr/blogue","publicAccessRulesEnabled":false,"publicAccessRules":[{"type":"LIST_MEMBERSHIP","ids":[]}]}},"listingPageId":70026589976,"businessUnitId":null,"rootUrl":"https://www.frontrowinsurance.com/articles","publicAccessRulesEnabled":false,"publicAccessRules":[{"type":"LIST_MEMBERSHIP","ids":[]}],"domainWhenPublished":"www.frontrowinsurance.com","commentShouldCreateContact":true,"parentBlogUpdateTaskId":null,"settingsOverrides":{"showSocialLinkTwitter":false,"ampBodyColor":false,"postHtmlHead":false,"ampHeaderFontSize":false,"enableGoogleAmpOutput":false,"showSummaryInRss":false,"commentVerificationText":false,"htmlFooterIsShared":false,"postsPerListingPage":false,"showSummariesInEmails":false,"commentModeration":false,"commentMaxThreadDepth":false,"listingTemplatePath":false,"htmlHeadIsShared":false,"allowComments":false,"commentShouldCreateContact":false,"ampLogoAlt":false,"ampHeaderColor":false,"itemLayoutId":false,"closeCommentsOlder":false,"socialAccountTwitter":false,"showSummaryInListing":false,"ampLogoSrc":false,"ampLogoWidth":false,"showSummaryInEmails":false,"ampLinkColor":false,"htmlFooter":false,"postsPerRssFeed":false,"commentNotificationEmails":false,"useFeaturedImageInSummary":false,"htmlHead":false,"showSocialLinkFacebook":false,"ampLogoHeight":false,"ampHeaderFont":false,"postHtmlFooter":false,"itemTemplatePath":false,"listingPageHtmlFooter":false,"ampBodyFont":false,"ampBodyFontSize":false,"generateJsonLdEnabled":false,"ampHeaderBackgroundColor":false,"itemTemplateIsShared":false,"attachedStylesheets":false,"showSocialLinkLinkedin":false,"listingLayoutId":false},"cosObjectType":"BLOG","title":null,"slug":"articles","analyticsPageId":137640,"publicTitle":"The Front Row View (entertainment insurance blog)","htmlTitle":"The Front Row View (entertainment insurance blog)","htmlHead":"<!-- Blog Schema by Front Row Insurance // https://www.frontrowinsurance.com/ -->\n\n<script type=\"application/ld+json\">\n {\n \"@context\": \"http://schema.org\",\n \"@type\": \"BlogPosting\",\n \"mainEntityOfPage\":{\n \"@type\":\"WebPage\",\n \"@id\":\"https://www.frontrowinsurance.com/articles/hard-vs.-soft-insurance-markets-explained\"\n },\n \"headline\": \"Hard vs. Soft Insurance Markets Explained (with Video!)\",\n \"image\": {\n \"@type\": \"ImageObject\",\n \"url\": \"\"\n },\n \"datePublished\": \"2019-08-19 14:23:39\",\n \"dateModified\": \"\",\n \"author\": {\n \"@type\": \"Person\",\n \"name\": \"') }}\"\n },\n \"publisher\": {\n \"@type\": \"Organization\",\n \"name\": \"FRONT ROW INSURANCE BROKERS\",\n \"logo\": {\n \"@type\": \"ImageObject\",\n \"url\": \"https://cdn2.hubspot.net/hubfs/61352/images/Logos/FR_logo_%5BConverted,-Inverted%5D.png\"\n }\n },\n \"description\": \"The difference between a hard vs. soft insurance market and why, as of Summer 2019, a hard market is expected in Canada over the next 12 months. 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HEIGHT: 78px\" title=\"\" border=0 alt=\"\" align=center src=\"http://focusinsurance.web6.hubspot.com/Portals/61352/images//logo_final.jpg\" width=138 height=78 mce_src=\"/Portals/61352/images//logo_final.jpg\">","legacyTabId":137640,"legacyModuleId":"164112","legacyGuid":"469ce2ec-4dd9-442d-984a-3bab2557a02f","ampHeaderColor":"#1e1e1e","ampHeaderBackgroundColor":"#ffffff","ampBodyColor":"#404040","ampLinkColor":"#416bb3","ampHeaderFont":"'Helvetica Neue', Helvetica, Arial, sans-serif","ampHeaderFontSize":"36","ampBodyFont":"'Helvetica Neue', Helvetica, Arial, sans-serif","ampBodyFontSize":"18","ampLogoSrc":"https://cdn2.hubspot.net/hubfs/61352/front-row-logo.png","ampLogoAlt":"Front Row Insurance logo","ampLogoHeight":63,"ampLogoWidth":175,"ampCustomCss":"","generateJsonLdEnabled":false,"urlSegments":{},"urlBase":"www.frontrowinsurance.com/articles","attachedStylesheets":[],"label":"The Front Row View (entertainment insurance blog)","description":"The Front Row Insurance Blog where you can learn and converse about all things entertainment insurance related.","header":null,"cdnPurgeEmbargoTime":null,"audienceAccess":"PUBLIC"},"themePath":null,"htmlTitle":"Hard vs. Soft Insurance Markets Explained (with Video!)","templatePathForRender":"prox_frontrow/templates/blog/blog-post.html","useFeaturedImage":false,"audienceAccess":"PUBLIC","postBodyRss":"<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><span><br><a href=\"/film-production-insurance?\" rel=\" noopener\">FILM PRODUCTION INSURANCE</a><br></span><a href=\"https://shortshoot.frontrowinsurance.com/\" rel=\" noopener\"><span>SHORT SHOOT INSURANCE FOR FILMMAKERS<br></span></a><a href=\"https://digigearinsure.frontrowinsurance.com/\" rel=\" noopener\"><span>EQUIPMENT INSURANCE FOR FILMMAKERS - DIGIGEAR</span></a></p>\n<p>What exactly is the difference between a hard and soft insurance market?</p>\n<p>A “hard” market is characterized by a high demand for insurance coverage and, therefore, a reduced supply. Payouts may have increased and profits may have declined. As a result, insurance companies are less inclined to take on new business. The requirements to obtain insurance are stricter and premiums are more expensive.</p>\n<h2>Classic characteristics of a <strong>hard market</strong> include:</h2>\n<ul>\n<li>Higher insurance premiums.</li>\n<li>More stringent underwriting criteria.</li>\n<li>Reduced capacity, which means insurance carriers offer less coverage or limits.</li>\n<li>Reduced competition among insurance carriers.</li>\n</ul>\n<p>During a “soft” market, there is much competition between companies. Premiums are stable, if not falling. It’s fairly easy to get coverage for all kinds of risks. As someone looking to buy insurance, you may have a variety of options from which to choose and underwriting rules are less stringent.</p>\n<h2>Classic characteristics of a <strong>soft market</strong> include:</h2>\n<ul>\n<li>Lower insurance premiums.</li>\n<li>Relaxed underwriting criteria.</li>\n<li>Increased capacity, which means insurance carriers write more policies and higher limits.</li>\n<li>Increased competition among insurance carriers.</li>\n</ul>\n<p>As of Summer 2019, a hard market is expected in Canada over <em>at least</em> the next 12 months. We’re already seeing rating increases, especially on commercial property. As an insurance customer, then, you may be wondering, <em>what is the reason for such price increases?</em> Well, the insurance market is inherently cyclical and has “corrections” that involve premium price increases. Prices are rising for a number of reasons, including an increase in weather-related claims and auto insurance claims. Low interest rates are also a contributing factor.</p>\n<p>We’re in a data-driven hard market today. With all the easily accessible data now available, insurance companies can pivot faster than ever before. In commercial lines, for example, insurers are getting out of different lines of business faster than in prior years. Once they see losses growing in one area, they will quickly shift out of that line of business. This also contributes to a hard market.</p>\n<p>In Canada, we had been in a soft market for, roughly, the past seven years. There had been virtually no rating increases (including simple inflationary increases) for many years. There has also been some capacity pulled out of the broader insurance market – eight Lloyd's of London syndicates shut down at the end of 2018, for example.</p>\n<p>In a July 2019 <em>Canadian Underwriter</em> interview, speaking on reasons for these price increases, Albert Benmichol, CEO of AXIS Capital said, “We believe the industry is appropriately reacting to loss trends that have deteriorated over the last few years and have exacerbated the negative impact of several years of price declines. We believe that pricing action will continue into 2020 and perhaps longer.”</p>\n<p>Nevertheless, even in a hard market, rest assured that at Front Row, we remain committed to offering customers the best price for the best coverage. Our size gives us leverage with the insurance companies that we use to benefit you.</p>\n<h3>Related:</h3>\n<p><a href=\"/articles/insurance-rates-are-rising-hard-market\" rel=\"noopener\">Insurance rates are rising and premiums are increasing | Hard market</a></p>\n<h3>References:</h3>\n<ul>\n<li><span style=\"font-size: 16px;\"><a href=\"https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/\">https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/</a></span></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.insurancehotline.com/what-is-a-hard-market/\" style=\"font-size: 16px; background-color: transparent;\">https://www.insurancehotline.com/what-is-a-hard-market/</a></li>\n<li><a href=\"http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html\" style=\"font-size: 16px; background-color: transparent;\">http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/</a></li>\n</ul>","postRssContent":"<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe></div>\n</div>\n","rssSummaryFeaturedImage":"","rssBody":"<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><span><br><a href=\"/film-production-insurance?\" rel=\" noopener\">FILM PRODUCTION INSURANCE</a><br></span><a href=\"https://shortshoot.frontrowinsurance.com/\" rel=\" noopener\"><span>SHORT SHOOT INSURANCE FOR FILMMAKERS<br></span></a><a href=\"https://digigearinsure.frontrowinsurance.com/\" rel=\" noopener\"><span>EQUIPMENT INSURANCE FOR FILMMAKERS - DIGIGEAR</span></a></p>\n<p>What exactly is the difference between a hard and soft insurance market?</p>\n<p>A “hard” market is characterized by a high demand for insurance coverage and, therefore, a reduced supply. Payouts may have increased and profits may have declined. As a result, insurance companies are less inclined to take on new business. The requirements to obtain insurance are stricter and premiums are more expensive.</p>\n<h2>Classic characteristics of a <strong>hard market</strong> include:</h2>\n<ul>\n<li>Higher insurance premiums.</li>\n<li>More stringent underwriting criteria.</li>\n<li>Reduced capacity, which means insurance carriers offer less coverage or limits.</li>\n<li>Reduced competition among insurance carriers.</li>\n</ul>\n<p>During a “soft” market, there is much competition between companies. Premiums are stable, if not falling. It’s fairly easy to get coverage for all kinds of risks. As someone looking to buy insurance, you may have a variety of options from which to choose and underwriting rules are less stringent.</p>\n<h2>Classic characteristics of a <strong>soft market</strong> include:</h2>\n<ul>\n<li>Lower insurance premiums.</li>\n<li>Relaxed underwriting criteria.</li>\n<li>Increased capacity, which means insurance carriers write more policies and higher limits.</li>\n<li>Increased competition among insurance carriers.</li>\n</ul>\n<p>As of Summer 2019, a hard market is expected in Canada over <em>at least</em> the next 12 months. We’re already seeing rating increases, especially on commercial property. As an insurance customer, then, you may be wondering, <em>what is the reason for such price increases?</em> Well, the insurance market is inherently cyclical and has “corrections” that involve premium price increases. Prices are rising for a number of reasons, including an increase in weather-related claims and auto insurance claims. Low interest rates are also a contributing factor.</p>\n<p>We’re in a data-driven hard market today. With all the easily accessible data now available, insurance companies can pivot faster than ever before. In commercial lines, for example, insurers are getting out of different lines of business faster than in prior years. Once they see losses growing in one area, they will quickly shift out of that line of business. This also contributes to a hard market.</p>\n<p>In Canada, we had been in a soft market for, roughly, the past seven years. There had been virtually no rating increases (including simple inflationary increases) for many years. There has also been some capacity pulled out of the broader insurance market – eight Lloyd's of London syndicates shut down at the end of 2018, for example.</p>\n<p>In a July 2019 <em>Canadian Underwriter</em> interview, speaking on reasons for these price increases, Albert Benmichol, CEO of AXIS Capital said, “We believe the industry is appropriately reacting to loss trends that have deteriorated over the last few years and have exacerbated the negative impact of several years of price declines. We believe that pricing action will continue into 2020 and perhaps longer.”</p>\n<p>Nevertheless, even in a hard market, rest assured that at Front Row, we remain committed to offering customers the best price for the best coverage. Our size gives us leverage with the insurance companies that we use to benefit you.</p>\n<h3>Related:</h3>\n<p><a href=\"/articles/insurance-rates-are-rising-hard-market\" rel=\"noopener\">Insurance rates are rising and premiums are increasing | Hard market</a></p>\n<h3>References:</h3>\n<ul>\n<li><span style=\"font-size: 16px;\"><a href=\"https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/\">https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/</a></span></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.insurancehotline.com/what-is-a-hard-market/\" style=\"font-size: 16px; background-color: transparent;\">https://www.insurancehotline.com/what-is-a-hard-market/</a></li>\n<li><a href=\"http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html\" style=\"font-size: 16px; background-color: transparent;\">http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/</a></li>\n</ul>","rssSummary":"<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe></div>\n</div>\n","postFeaturedImageIfEnabled":"","postListSummaryFeaturedImage":"","postRssSummaryFeaturedImage":"","keywords":[],"isInstantEmailEnabled":true,"isSocialPublishingEnabled":false,"blogPostAuthor":{"portalId":61352,"id":9474946913,"created":1557244191140,"updated":1557244191140,"deletedAt":0,"fullName":"Grant Patten","email":"grant@frontrowinsurance.com","userId":null,"username":null,"slug":"grant-patten","language":null,"translatedFromId":null,"name":"Grant Patten","translations":{},"bio":"Grant Patten - VP, Marketing","website":"","twitter":"","facebook":"","linkedin":"","avatar":"","gravatarUrl":"https://app.hubspot.com/settings/avatar/9751f803d54c2340cccdf5025adc9aa4","twitterUsername":"","hasSocialProfiles":false,"cosObjectType":"BLOG_AUTHOR","label":"Grant Patten","displayName":"Grant Patten","cdnPurgeEmbargoTime":null},"tagIds":[949708809],"topicIds":[949708809],"topicList":[{"id":949708809,"portalId":61352,"name":"Entertainment Insurance","slug":"entertainment-insurance","description":"","created":1401901718000,"updated":1401901718001,"deletedAt":0,"categoryId":0,"contentIds":[],"language":null,"translatedFromId":null,"translations":{},"cosObjectType":"TAG","label":"Entertainment Insurance","cdnPurgeEmbargoTime":null}],"tagNames":["Entertainment Insurance"],"topicNames":["Entertainment Insurance"],"areCommentsAllowed":true,"isCaptchaRequired":true,"syncedWithBlogRoot":true,"enableGoogleAmpOutputOverride":false,"generateJsonLdEnabledOverride":true,"compositionId":0,"contentGroup":952267656,"publishDateLocalized":{"format":"medium","language":"en_US","date":1566224619000},"postTemplate":"prox_frontrow/templates/blog/blog-post.html","listTemplate":"prox_frontrow/templates/blog/blog-listing.html","postBody":"<span id=\"hs_cos_wrapper_post_body\" class=\"hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_rich_text\" style=\"\" data-hs-cos-general-type=\"meta_field\" data-hs-cos-type=\"rich_text\" ><div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><span><br><a href=\"/film-production-insurance?\" rel=\" noopener\">FILM PRODUCTION INSURANCE</a><br></span><a href=\"https://shortshoot.frontrowinsurance.com/\" rel=\" noopener\"><span>SHORT SHOOT INSURANCE FOR FILMMAKERS<br></span></a><a href=\"https://digigearinsure.frontrowinsurance.com/\" rel=\" noopener\"><span>EQUIPMENT INSURANCE FOR FILMMAKERS - DIGIGEAR</span></a></p>\n<p>What exactly is the difference between a hard and soft insurance market?</p>\n<p>A “hard” market is characterized by a high demand for insurance coverage and, therefore, a reduced supply. Payouts may have increased and profits may have declined. As a result, insurance companies are less inclined to take on new business. The requirements to obtain insurance are stricter and premiums are more expensive.</p>\n<h2>Classic characteristics of a <strong>hard market</strong> include:</h2>\n<ul>\n<li>Higher insurance premiums.</li>\n<li>More stringent underwriting criteria.</li>\n<li>Reduced capacity, which means insurance carriers offer less coverage or limits.</li>\n<li>Reduced competition among insurance carriers.</li>\n</ul>\n<p>During a “soft” market, there is much competition between companies. Premiums are stable, if not falling. It’s fairly easy to get coverage for all kinds of risks. As someone looking to buy insurance, you may have a variety of options from which to choose and underwriting rules are less stringent.</p>\n<h2>Classic characteristics of a <strong>soft market</strong> include:</h2>\n<ul>\n<li>Lower insurance premiums.</li>\n<li>Relaxed underwriting criteria.</li>\n<li>Increased capacity, which means insurance carriers write more policies and higher limits.</li>\n<li>Increased competition among insurance carriers.</li>\n</ul>\n<p>As of Summer 2019, a hard market is expected in Canada over <em>at least</em> the next 12 months. We’re already seeing rating increases, especially on commercial property. As an insurance customer, then, you may be wondering, <em>what is the reason for such price increases?</em> Well, the insurance market is inherently cyclical and has “corrections” that involve premium price increases. Prices are rising for a number of reasons, including an increase in weather-related claims and auto insurance claims. Low interest rates are also a contributing factor.</p>\n<p>We’re in a data-driven hard market today. With all the easily accessible data now available, insurance companies can pivot faster than ever before. In commercial lines, for example, insurers are getting out of different lines of business faster than in prior years. Once they see losses growing in one area, they will quickly shift out of that line of business. This also contributes to a hard market.</p>\n<p>In Canada, we had been in a soft market for, roughly, the past seven years. There had been virtually no rating increases (including simple inflationary increases) for many years. There has also been some capacity pulled out of the broader insurance market – eight Lloyd's of London syndicates shut down at the end of 2018, for example.</p>\n<p>In a July 2019 <em>Canadian Underwriter</em> interview, speaking on reasons for these price increases, Albert Benmichol, CEO of AXIS Capital said, “We believe the industry is appropriately reacting to loss trends that have deteriorated over the last few years and have exacerbated the negative impact of several years of price declines. We believe that pricing action will continue into 2020 and perhaps longer.”</p>\n<p>Nevertheless, even in a hard market, rest assured that at Front Row, we remain committed to offering customers the best price for the best coverage. Our size gives us leverage with the insurance companies that we use to benefit you.</p>\n<h3>Related:</h3>\n<p><a href=\"/articles/insurance-rates-are-rising-hard-market\" rel=\"noopener\">Insurance rates are rising and premiums are increasing | Hard market</a></p>\n<h3>References:</h3>\n<ul>\n<li><span style=\"font-size: 16px;\"><a href=\"https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/\">https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/</a></span></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.insurancehotline.com/what-is-a-hard-market/\" style=\"font-size: 16px; background-color: transparent;\">https://www.insurancehotline.com/what-is-a-hard-market/</a></li>\n<li><a href=\"http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html\" style=\"font-size: 16px; background-color: transparent;\">http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/</a></li>\n</ul></span>","postSummary":"<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe></div>\n</div>\n","blogPostScheduleTaskUid":null,"blogPublishToSocialMediaTask":"DONE","blogPublishInstantEmailTaskUid":"DONE","blogPublishInstantEmailCampaignId":null,"blogPublishInstantEmailRetryCount":null,"postListContent":"<span id=\"hs_cos_wrapper_post_body\" class=\"hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_rich_text\" style=\"\" data-hs-cos-general-type=\"meta_field\" data-hs-cos-type=\"rich_text\" ><div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><span><br><a href=\"/film-production-insurance?\" rel=\" noopener\">FILM PRODUCTION INSURANCE</a><br></span><a href=\"https://shortshoot.frontrowinsurance.com/\" rel=\" noopener\"><span>SHORT SHOOT INSURANCE FOR FILMMAKERS<br></span></a><a href=\"https://digigearinsure.frontrowinsurance.com/\" rel=\" noopener\"><span>EQUIPMENT INSURANCE FOR FILMMAKERS - DIGIGEAR</span></a></p>\n<p>What exactly is the difference between a hard and soft insurance market?</p>\n<p>A “hard” market is characterized by a high demand for insurance coverage and, therefore, a reduced supply. Payouts may have increased and profits may have declined. As a result, insurance companies are less inclined to take on new business. The requirements to obtain insurance are stricter and premiums are more expensive.</p>\n<h2>Classic characteristics of a <strong>hard market</strong> include:</h2>\n<ul>\n<li>Higher insurance premiums.</li>\n<li>More stringent underwriting criteria.</li>\n<li>Reduced capacity, which means insurance carriers offer less coverage or limits.</li>\n<li>Reduced competition among insurance carriers.</li>\n</ul>\n<p>During a “soft” market, there is much competition between companies. Premiums are stable, if not falling. It’s fairly easy to get coverage for all kinds of risks. As someone looking to buy insurance, you may have a variety of options from which to choose and underwriting rules are less stringent.</p>\n<h2>Classic characteristics of a <strong>soft market</strong> include:</h2>\n<ul>\n<li>Lower insurance premiums.</li>\n<li>Relaxed underwriting criteria.</li>\n<li>Increased capacity, which means insurance carriers write more policies and higher limits.</li>\n<li>Increased competition among insurance carriers.</li>\n</ul>\n<p>As of Summer 2019, a hard market is expected in Canada over <em>at least</em> the next 12 months. We’re already seeing rating increases, especially on commercial property. As an insurance customer, then, you may be wondering, <em>what is the reason for such price increases?</em> Well, the insurance market is inherently cyclical and has “corrections” that involve premium price increases. Prices are rising for a number of reasons, including an increase in weather-related claims and auto insurance claims. Low interest rates are also a contributing factor.</p>\n<p>We’re in a data-driven hard market today. With all the easily accessible data now available, insurance companies can pivot faster than ever before. In commercial lines, for example, insurers are getting out of different lines of business faster than in prior years. Once they see losses growing in one area, they will quickly shift out of that line of business. This also contributes to a hard market.</p>\n<p>In Canada, we had been in a soft market for, roughly, the past seven years. There had been virtually no rating increases (including simple inflationary increases) for many years. There has also been some capacity pulled out of the broader insurance market – eight Lloyd's of London syndicates shut down at the end of 2018, for example.</p>\n<p>In a July 2019 <em>Canadian Underwriter</em> interview, speaking on reasons for these price increases, Albert Benmichol, CEO of AXIS Capital said, “We believe the industry is appropriately reacting to loss trends that have deteriorated over the last few years and have exacerbated the negative impact of several years of price declines. We believe that pricing action will continue into 2020 and perhaps longer.”</p>\n<p>Nevertheless, even in a hard market, rest assured that at Front Row, we remain committed to offering customers the best price for the best coverage. Our size gives us leverage with the insurance companies that we use to benefit you.</p>\n<h3>Related:</h3>\n<p><a href=\"/articles/insurance-rates-are-rising-hard-market\" rel=\"noopener\">Insurance rates are rising and premiums are increasing | Hard market</a></p>\n<h3>References:</h3>\n<ul>\n<li><span style=\"font-size: 16px;\"><a href=\"https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/\">https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/</a></span></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.insurancehotline.com/what-is-a-hard-market/\" style=\"font-size: 16px; background-color: transparent;\">https://www.insurancehotline.com/what-is-a-hard-market/</a></li>\n<li><a href=\"http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html\" style=\"font-size: 16px; background-color: transparent;\">http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/</a></li>\n</ul></span>","postEmailContent":"<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe></div>\n</div>\n","postSummaryRss":"<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe></div>\n</div>\n","publishedAt":1649792694894,"title":"Hard vs. Soft Insurance Markets Explained (with Video!)","enableLayoutStylesheets":null,"tweet":null,"tweetAt":null,"campaignName":null,"campaignUtm":null,"metaKeywords":null,"metaDescription":"The difference between a hard vs. soft insurance market and why, as of Summer 2019, a hard market is expected in Canada over the next 12 months. 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Video.","post_body":"<span id=\"hs_cos_wrapper_post_body\" class=\"hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_rich_text\" style=\"\" data-hs-cos-general-type=\"meta_field\" data-hs-cos-type=\"rich_text\" ><div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><span><br><a href=\"/film-production-insurance?\" rel=\" noopener\">FILM PRODUCTION INSURANCE</a><br></span><a href=\"https://shortshoot.frontrowinsurance.com/\" rel=\" noopener\"><span>SHORT SHOOT INSURANCE FOR FILMMAKERS<br></span></a><a href=\"https://digigearinsure.frontrowinsurance.com/\" rel=\" noopener\"><span>EQUIPMENT INSURANCE FOR FILMMAKERS - DIGIGEAR</span></a></p>\n<p>What exactly is the difference between a hard and soft insurance market?</p>\n<p>A “hard” market is characterized by a high demand for insurance coverage and, therefore, a reduced supply. Payouts may have increased and profits may have declined. As a result, insurance companies are less inclined to take on new business. The requirements to obtain insurance are stricter and premiums are more expensive.</p>\n<h2>Classic characteristics of a <strong>hard market</strong> include:</h2>\n<ul>\n<li>Higher insurance premiums.</li>\n<li>More stringent underwriting criteria.</li>\n<li>Reduced capacity, which means insurance carriers offer less coverage or limits.</li>\n<li>Reduced competition among insurance carriers.</li>\n</ul>\n<p>During a “soft” market, there is much competition between companies. Premiums are stable, if not falling. It’s fairly easy to get coverage for all kinds of risks. As someone looking to buy insurance, you may have a variety of options from which to choose and underwriting rules are less stringent.</p>\n<h2>Classic characteristics of a <strong>soft market</strong> include:</h2>\n<ul>\n<li>Lower insurance premiums.</li>\n<li>Relaxed underwriting criteria.</li>\n<li>Increased capacity, which means insurance carriers write more policies and higher limits.</li>\n<li>Increased competition among insurance carriers.</li>\n</ul>\n<p>As of Summer 2019, a hard market is expected in Canada over <em>at least</em> the next 12 months. We’re already seeing rating increases, especially on commercial property. As an insurance customer, then, you may be wondering, <em>what is the reason for such price increases?</em> Well, the insurance market is inherently cyclical and has “corrections” that involve premium price increases. Prices are rising for a number of reasons, including an increase in weather-related claims and auto insurance claims. Low interest rates are also a contributing factor.</p>\n<p>We’re in a data-driven hard market today. With all the easily accessible data now available, insurance companies can pivot faster than ever before. In commercial lines, for example, insurers are getting out of different lines of business faster than in prior years. Once they see losses growing in one area, they will quickly shift out of that line of business. This also contributes to a hard market.</p>\n<p>In Canada, we had been in a soft market for, roughly, the past seven years. There had been virtually no rating increases (including simple inflationary increases) for many years. There has also been some capacity pulled out of the broader insurance market – eight Lloyd's of London syndicates shut down at the end of 2018, for example.</p>\n<p>In a July 2019 <em>Canadian Underwriter</em> interview, speaking on reasons for these price increases, Albert Benmichol, CEO of AXIS Capital said, “We believe the industry is appropriately reacting to loss trends that have deteriorated over the last few years and have exacerbated the negative impact of several years of price declines. We believe that pricing action will continue into 2020 and perhaps longer.”</p>\n<p>Nevertheless, even in a hard market, rest assured that at Front Row, we remain committed to offering customers the best price for the best coverage. Our size gives us leverage with the insurance companies that we use to benefit you.</p>\n<h3>Related:</h3>\n<p><a href=\"/articles/insurance-rates-are-rising-hard-market\" rel=\"noopener\">Insurance rates are rising and premiums are increasing | Hard market</a></p>\n<h3>References:</h3>\n<ul>\n<li><span style=\"font-size: 16px;\"><a href=\"https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/\">https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/</a></span></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.insurancehotline.com/what-is-a-hard-market/\" style=\"font-size: 16px; background-color: transparent;\">https://www.insurancehotline.com/what-is-a-hard-market/</a></li>\n<li><a href=\"http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html\" style=\"font-size: 16px; background-color: transparent;\">http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/</a></li>\n</ul></span>","publish_immediately":true,"use_featured_image":false,"published_by_id":7915797,"published_at":1649792694894,"rss_body":"<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><span><br><a href=\"/film-production-insurance?\" rel=\" noopener\">FILM PRODUCTION INSURANCE</a><br></span><a href=\"https://shortshoot.frontrowinsurance.com/\" rel=\" noopener\"><span>SHORT SHOOT INSURANCE FOR FILMMAKERS<br></span></a><a href=\"https://digigearinsure.frontrowinsurance.com/\" rel=\" noopener\"><span>EQUIPMENT INSURANCE FOR FILMMAKERS - DIGIGEAR</span></a></p>\n<p>What exactly is the difference between a hard and soft insurance market?</p>\n<p>A “hard” market is characterized by a high demand for insurance coverage and, therefore, a reduced supply. Payouts may have increased and profits may have declined. As a result, insurance companies are less inclined to take on new business. The requirements to obtain insurance are stricter and premiums are more expensive.</p>\n<h2>Classic characteristics of a <strong>hard market</strong> include:</h2>\n<ul>\n<li>Higher insurance premiums.</li>\n<li>More stringent underwriting criteria.</li>\n<li>Reduced capacity, which means insurance carriers offer less coverage or limits.</li>\n<li>Reduced competition among insurance carriers.</li>\n</ul>\n<p>During a “soft” market, there is much competition between companies. Premiums are stable, if not falling. It’s fairly easy to get coverage for all kinds of risks. As someone looking to buy insurance, you may have a variety of options from which to choose and underwriting rules are less stringent.</p>\n<h2>Classic characteristics of a <strong>soft market</strong> include:</h2>\n<ul>\n<li>Lower insurance premiums.</li>\n<li>Relaxed underwriting criteria.</li>\n<li>Increased capacity, which means insurance carriers write more policies and higher limits.</li>\n<li>Increased competition among insurance carriers.</li>\n</ul>\n<p>As of Summer 2019, a hard market is expected in Canada over <em>at least</em> the next 12 months. We’re already seeing rating increases, especially on commercial property. As an insurance customer, then, you may be wondering, <em>what is the reason for such price increases?</em> Well, the insurance market is inherently cyclical and has “corrections” that involve premium price increases. Prices are rising for a number of reasons, including an increase in weather-related claims and auto insurance claims. Low interest rates are also a contributing factor.</p>\n<p>We’re in a data-driven hard market today. With all the easily accessible data now available, insurance companies can pivot faster than ever before. In commercial lines, for example, insurers are getting out of different lines of business faster than in prior years. Once they see losses growing in one area, they will quickly shift out of that line of business. This also contributes to a hard market.</p>\n<p>In Canada, we had been in a soft market for, roughly, the past seven years. There had been virtually no rating increases (including simple inflationary increases) for many years. There has also been some capacity pulled out of the broader insurance market – eight Lloyd's of London syndicates shut down at the end of 2018, for example.</p>\n<p>In a July 2019 <em>Canadian Underwriter</em> interview, speaking on reasons for these price increases, Albert Benmichol, CEO of AXIS Capital said, “We believe the industry is appropriately reacting to loss trends that have deteriorated over the last few years and have exacerbated the negative impact of several years of price declines. We believe that pricing action will continue into 2020 and perhaps longer.”</p>\n<p>Nevertheless, even in a hard market, rest assured that at Front Row, we remain committed to offering customers the best price for the best coverage. Our size gives us leverage with the insurance companies that we use to benefit you.</p>\n<h3>Related:</h3>\n<p><a href=\"/articles/insurance-rates-are-rising-hard-market\" rel=\"noopener\">Insurance rates are rising and premiums are increasing | Hard market</a></p>\n<h3>References:</h3>\n<ul>\n<li><span style=\"font-size: 16px;\"><a href=\"https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/\">https://www.canadianunderwriter.ca/insurance/how-long-will-the-hard-market-last-1004166484/</a></span></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/hard-market-could-continue-beyond-2020-insurer-1004166538/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.insurancehotline.com/what-is-a-hard-market/\" style=\"font-size: 16px; background-color: transparent;\">https://www.insurancehotline.com/what-is-a-hard-market/</a></li>\n<li><a href=\"http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html\" style=\"font-size: 16px; background-color: transparent;\">http://www.bflrealestate.ca/news-and-articles/52-hard-market-vs-soft-market-why-we-are-currently-in-the-beginning-of-a-hard-market-.html</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/why-insurers-are-not-calling-it-a-hard-market-1004161663/</a></li>\n<li><a href=\"https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/\" style=\"font-size: 16px; background-color: transparent;\">https://www.canadianunderwriter.ca/insurance/these-lloyds-syndicates-have-shut-down-1004161301/</a></li>\n</ul>","rss_summary":"<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"margin: 0px auto; display: block; width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/n5YFYlEeMls\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe></div>\n</div>\n","blog_publish_instant_email_task_uid":"DONE","blog_publish_to_social_media_task":"DONE","page_redirected":false,"past_mab_experiment_ids":[],"personas":[],"placement_guids":[],"public_access_rules":[],"public_access_rules_enabled":false,"tweet_immediately":false,"unpublished_at":0,"head_html":"<!-- START - Generated by ClassySchema.org on Tue, 20 Oct 2020 14:36:23 GMT -->\n<script type=\"application/ld+json\">\n{\n\t\"@context\": \"http://schema.org\",\n\t\"@type\": \"VideoObject\",\n\t\"name\": \"Hard vs. Soft Insurance Markets Explained\",\n\t\"description\": \"In this episode of The Front Row View …on Insurance, we’ll review the difference between a hard vs. soft insurance market and explain why, as of Summer 2019,...\",\n\t\"thumbnailUrl\": \"https://i.ytimg.com/vi/n5YFYlEeMls/mqdefault.jpg\",\n\t\"duration\": \"PT3M54S\",\n\t\"contentUrl\": \"https://www.youtube.com/watch?v=n5YFYlEeMls\",\n\t\"embedUrl\": \"https://www.youtube.com/embed/n5YFYlEeMls\",\n\t\"uploadDate\": \"2019-08-16\"\n}\n</script>\n<!-- END - Generated by ClassySchema.org-->","layout_sections":{},"scheduled_update_date":0,"featured_image_height":0,"featured_image_width":0,"blog_post_schedule_task_uid":null,"header":null}}

Hard vs. Soft Insurance Markets Explained (with Video!)


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SHORT SHOOT INSURANCE FOR FILMMAKERS
EQUIPMENT INSURANCE FOR FILMMAKERS - DIGIGEAR

What exactly is the difference between a hard and soft insurance market?

A “hard” market is characterized by a high demand for insurance coverage and, therefore, a reduced supply. Payouts may have increased and profits may have declined. As a result, insurance companies are less inclined to take on new business. The requirements to obtain insurance are stricter and premiums are more expensive.

Classic characteristics of a hard market include:

  • Higher insurance premiums.
  • More stringent underwriting criteria.
  • Reduced capacity, which means insurance carriers offer less coverage or limits.
  • Reduced competition among insurance carriers.

During a “soft” market, there is much competition between companies. Premiums are stable, if not falling. It’s fairly easy to get coverage for all kinds of risks. As someone looking to buy insurance, you may have a variety of options from which to choose and underwriting rules are less stringent.

Classic characteristics of a soft market include:

  • Lower insurance premiums.
  • Relaxed underwriting criteria.
  • Increased capacity, which means insurance carriers write more policies and higher limits.
  • Increased competition among insurance carriers.

As of Summer 2019, a hard market is expected in Canada over at least the next 12 months. We’re already seeing rating increases, especially on commercial property. As an insurance customer, then, you may be wondering, what is the reason for such price increases? Well, the insurance market is inherently cyclical and has “corrections” that involve premium price increases. Prices are rising for a number of reasons, including an increase in weather-related claims and auto insurance claims. Low interest rates are also a contributing factor.

We’re in a data-driven hard market today. With all the easily accessible data now available, insurance companies can pivot faster than ever before. In commercial lines, for example, insurers are getting out of different lines of business faster than in prior years. Once they see losses growing in one area, they will quickly shift out of that line of business. This also contributes to a hard market.

In Canada, we had been in a soft market for, roughly, the past seven years. There had been virtually no rating increases (including simple inflationary increases) for many years. There has also been some capacity pulled out of the broader insurance market – eight Lloyd's of London syndicates shut down at the end of 2018, for example.

In a July 2019 Canadian Underwriter interview, speaking on reasons for these price increases, Albert Benmichol, CEO of AXIS Capital said, “We believe the industry is appropriately reacting to loss trends that have deteriorated over the last few years and have exacerbated the negative impact of several years of price declines. We believe that pricing action will continue into 2020 and perhaps longer.”

Nevertheless, even in a hard market, rest assured that at Front Row, we remain committed to offering customers the best price for the best coverage. Our size gives us leverage with the insurance companies that we use to benefit you.

Related:

Insurance rates are rising and premiums are increasing | Hard market

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