The insurance market cycles between hard and soft stages, each stage lasting between 2 to 10 years. In a soft market, insurers will chase business whereas in a hard market, insurers tend to write fewer policies. In Australia, there are signs that the insurance market is moving from a soft to a hard market.

What you need to know

We’ve put together a table comparing a soft and a hard insurance market which may help you to recognise the signs.

 Soft marketHard market
in the
Flowing inLower availability
More, easier to get coverLess, more selective
PremiumsLower, discounts
may be offered
ClaimsEasierMore difficult
Possible contributing factorsStrong economic conditions and fewercatastrophic eventsWeak economic conditions, a series of catastrophic events, a litigious legal environment


How do you prepare for a hard market?

  1. Budget for the expected increase in costs.
  2. Build a good relationship with a reputable insurance broker.

Your broker will help in several ways:

  • Secure optimal cover for you as they will know many insurers.
  • Advise you on potential and expected cost fluctuations.
  • Assist should a claim be rejected.

How do you minimise cost increases?

  1. Arrange to keep favourable premiums and excesses in place for as long as possible, i.e. for future renewals.
  2. Secure higher policy limits and broader cover while they are still available. Think ahead to your future business needs if they are likely to change.

As the insurance market changes, we are here to help you navigate what this means for your business. Get in touch with us today to discuss your business insurance needs.

P: 1800 809 132

Important Note: All insurance policies have exclusions. Please refer to the Product Disclosure Statement or Policy Wording to decide whether an insurance policy meets your needs.

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