Q: What is the difference between a soft market and vs. hard market in insurance?
A: In a soft market, premium rates are relatively lower, and there is a lot more competition for business, so clients aren’t typically looking to make changes to their policies because they may view their rate as attractive. In a hard market, rates are likely higher, and insurance can seem more expensive. In this type of market, insurers may have more limited underwriting appetite based on the competitive marketplace.

Q: What advice would you give clients with their insurance in this market?
A: Now is the time to consider your relationship with your carrier — have they been historically restrictive with coverage? Despite being claims-free, have your rates been going up year upon year? Talk to your Insurance Broker and ask them prior to your renewal to talk to your carrier about a competitive and appropriate rate. Ask your Broker to do a market analysis — you might have been with a carrier for decades but in a soft market, now is the time to explore all options — yes, building loyalty to a company is important — you don’t want to be jumping around each year from carrier to carrier, but in some cases you might be surprised what else is out there that might be a better fit for you personally or commercially.

Q: Does this market behaviour highlight the importance of maintaining strong relationships?
A: It all comes down to valuing our relationships with our clients and our brokers and making sure people know that Great American is a specialist in this space, that we’re Industry Leaders, and that we are flexible. As far as Great American Insurance Company goes — hard market or soft market — we offer an excellent product and reputation. We think outside the box with coverage. It’s not a one-size-fits-all. People are often surprised when they think they’re getting a great deal with their home insurance collection or their business insurance collection, and then they come to us and we’re able to provide tailored coverage and often, more competitive pricing.

@theartinsurer
Email: [email protected]
FineArtAndCollectibles.com