Brokers and insurers agree – the hard market is coming

Despite a relatively uneventful June 30 renewals period, major brokers and insurers remain convinced the market will harden.

When we refer to a market hardening it means Prices go up, and broadness of cover goes down. This due usually to less competition or a crisis or catastrophe which has hit insurers hard. It is also has been due to falls in the stock market as insurers make additional money by investing their reserves before needing that money to pay claims. If the stock market falls they make no extra money. However the GFC from three years ago seemed to have little affect on prices.