Maybe it hasn’t arrived yet. Maybe it’s already here. Or maybe we’re just seeing early signs of it. But nearly everyone in the business insurance industry agrees that a cyclical change back to a hard market is inevitable and perhaps underway.
With U.S. property/casualty insurance companies experiencing an estimated $15.2 billion in underwriting losses last year, and insurers’ investment income averaging only a 3.9 percent return, insurers are beginning to raise premiums and tighten their underwriting standards, both signs of a transition toward a “hard” insurance market.