mean more competition, and more competition among the carriers.
The current soft market
is different from the last four soft markets
experienced since 1975 for two reasons.
Within the bowels of the carriers, soft markets
cast a pall on the important questions: Should we continue using brokers or go direct?
The Issue: Competition increases in soft markets
, making it harder for MGAs to develop new business.
start with a leveling of rates, but this is still a hard market because the industry is still seeing rate increases, said Donner.
The five years of double-digit growth insurers enjoyed from 1975 to 1979 triggered a soft market
and the industry's worst-ever combined ratio--118%--in 1984.
In the depths of the past two commercial-lines soft markets
of the early 1980s and the 1990s, insurers and reinsurers desperate for premium dreamt up all kinds of new-fangled products, for better and for worse.
Typically, mutuals tend to be overcapitalized in soft markets
and undercapitalized in hard markets.