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  • Writer's pictureFulton Agency

As the insurance industry helps the world recover from disasters, the cost of insurance will change.


Times Are Changing

Frequently Asked Questions regarding the Hardening Insurance Market

Q: How long does a hard market last?

A: There is no magic calendar; however, once insurance companies begin seeing improved margins (due to higher premiums and/or lower losses), investment income improves, investors start seeing similarly positive results and insurance once again starts looking like a stronger investment, which attracts more capital. As the capital supply begins to catch up with the demand, pricing and restrictions loosen.

Q: Why is my premium going up when I have had no claims?

A: The primary reason is that insurance companies are incurring more claims and expenses on an overall basis. Losses and increased claims, in general, drive the need for increased pricing across the board for insurance providers.

Q: My primary concern is my costs/budget. Should I buy less insurance?

A: Although budgets may well be challenged by increasing premiums, it is important not to lose sight of the big picture: saving a relatively modest amount now by reducing coverage may negatively affect your business significantly should a loss occur. While reducing insurance coverage may be an attractive alternative, you should evaluate that choice

against what losses you can absorb without creating financial hardship for yourself/your business.

While property catastrophe insurance is a small niche within the insurance industry as a whole, it is heavily influenced by loss events around the world, the global climate, and the worldwide economy. ICAT strives to provide peace of mind for you and your insureds during all cycles of the market.

1. Sullivan, B., & *, N. (2017, November 28). 2017 HurricaneSeason Ranks as Costliest Ever for the U.S. Retrieved November 23, 2020, from

2. Chen, A. (2017, August 29). Tropical storm Harvey has set a new record for rain in the continental  US. Retrieved November 23, 2020, from s

3. CBS News. (2018, October 10). Hurricane Michael is the most powerful storm to hit the Florida Panhandle on record. RetrievedNovember 23, 2020, from

4. Jason Samenow, A. (2020, November 11). 2020 Atlantic hurricane season breaks the all-time record while leavingGulf Coast battered. Retrieved November 23, 2020, from

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