Beware the hard insurance market

The insurance marketplace works in cycles, varying between levels of soft and hard markets.

Unfortunately, the insurance sector has entered a ‘hard market’ for the first time in nearly 20 years. This could be the first time that many companies have experienced these conditions.

What is a hard market?

The signs have been coming for the past year or two with insurers demonstrating a lack of appetite for writing cases, but now we are most certainly trading in a hard market. This means that most insurers are looking for premium increases, imposing stricter terms or declining risks.

Quotation turnaround times have been impacted significantly with risks needing further consideration. With premiums increasing insurers are seeing far more cases in an attempt to secure improved terms or, where the existing markets are declining, to quote at renewal.

What has caused the hard market?

It’s caused by multiple factors such as large catastrophes (storms Ciara and Dennis, Grenfell Tower) and low savings returns. Coronavirus certainly hasn’t helped, but this list isn’t exhaustive.

If an insurer’s profitability is driven down then it tends to lead to a hard market.

What should I do?

Do not panic, but start the process early and look to engage with an experienced alternative broker. But not too many, as this will prove counterproductive, commonly known as ‘flooding the market’.

Engaging with an experienced broker with a larger emphasis on risk management can help make your ‘risk’ more attractive to an insurer.

Here at Spencer Hayes Group we are both. Our staff have decades of experience, and can also assist with risk management programmes; anything from Health & Safety to Business Continuity Planning.

  • To read this feature in full and access further Lancashire business news, advice and analysis subscribe to Lancashire Business View magazine or join the LBV Hub from just £2.50 per month. Click here to subscribe now.

Enjoyed this? Read more from Marc Kirker, Spencer Hayes Group

Latest news

1

Date revealed for opening of entries for Red Rose Awards 2026 Red Rose Awards 2025

Date revealed for opening of entries for Red Rose Awards 2026

14 Jul 2025

2

Northcote celebrates prestigious industry marketing award for the 25th anniversary of Culinary Festival Obsession Northcotes winning awards

Northcote celebrates prestigious industry marketing award for the 25th anniversary of Culinary Festival Obsession

14 Jul 2025

3

Applebridge take over first floor letting at Ackhurst Business Park in Chorley John Kiernan - Construction Director & Paul Troubridge - Project Director; from the Applebridge Family

Applebridge take over first floor letting at Ackhurst Business Park in Chorley

14 Jul 2025

4

Expanding Airframe Designs appoints new advisory board chairman David Roberts and Jerrod Hartley

Expanding Airframe Designs appoints new advisory board chairman

14 Jul 2025

5

Booths win gold at International Cheese and Dairy awards Cheese counter at Booths

Booths win gold at International Cheese and Dairy awards

14 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College University Courses Building, Burnley, BB12 0AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

Burnley FC , Burnley, BB10 4BX

12:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin