NAVIGATING THE
HARD MARKET
WHY ARE PREMIUMS ON THE RISE?
BY: MYLES KUHARSKI, BA, CAIB, CPIB, ACCOUNT EXECUTIVE – BUSINESS INSURANCE, GILLONS INSURANCE BROKERS
B
usiness owners everywhere have
experienced the ups and downs
of changing market conditions.
Whether it’s the cost of goods
bought or sold or the buying
pattern of consumers, the market in which
businesses transact can fluctuate and be
determined by a variety of external or
6
internal factors. These basic economic
elements ring true to many different
industries, including the Insurance
Marketplace. From the brokerage and
insurance company perspective, the cycle
we are in currently would be considered a
“Hard Market.”
Why is it called a “Hard Market”? Simply
put, this means insurance companies
are not experiencing adequate levels
of profit due to worsening loss ratios.
Recent statistics suggest that, as an
industry average, if a company is taking
in $1 in premiums, they are paying out
$1.10 in claims. Losses associated with