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Updated: May 15

A flower grows in harsh desert conditions

As the economic landscape fluctuates, so does the insurance industry. Currently, we find ourselves in what we call a "hard market." This translates to increased premiums and stricter underwriting criteria across the insurance landscape, which can not only make it more difficult to get a policy but also result in increased prices at renewal. 


In this blog, we'll delve into what a hard market entails and provide strategies so you can navigate rising premiums with ease. 


Why Are Insurance Premiums Increasing? 

It's a common question among policyholders: why are my insurance premiums going up? Contrary to popular belief, these increases aren't arbitrary. Let's explore a couple of key factors driving this trend. 


Weather and Population Shifts 

Extreme weather events, particularly in coastal areas, have led to an increase in insurance claims for policyholders. As climate-related disasters become more frequent and severe, insurers face higher claim costs, prompting them to adjust premiums accordingly. Additionally, population shifts and urban sprawl make high-risk areas even riskier, further driving up costs for insurers and policyholders alike. 


Economic Inflation 

It seems everything's getting more expensive these days, and insurers feel those effects too. Inflation has caused labor and repair costs to skyrocket, which in turn increases the price of claims. To manage these heightened expenses, insurance companies raise their premiums. This adjustment ensures that you maintain robust coverage despite the economic strain. As a result, you may feel the pinch of economic inflation through their insurance bills. 


However, there is a silver lining. By adjusting premiums to reflect these rising costs, insurers prioritize adequate protection for their customers when the unexpected strikes. So, while it may sting a bit now, rest assured knowing that your insurance coverage remains steadfast, like a sturdy umbrella in a storm of inflation. 


Tips on Saving on Your Insurance Premium in a Hard Market 

Feeling the impacts of rising premiums? Don't worry, we've got your back! Let's dive into our expert tips on how to navigate the challenges of a hard market and still find ways to save money on your insurance. 


Increase your deductible: By opting for a higher deductible, you can lower your premium payments. Just be sure to assess your financial situation and choose a deductible that you can comfortably afford in the event of a claim. 

Connect with a trusted professional: Working with an experienced insurance advisor can help you understand the ins and outs of your policy and ensure that you're adequately covered without overpaying for unnecessary features. 

Implement a safety program: No matter what industry you’re in, insurance companies often reward businesses that proactively mitigate risks by offering lower premiums. Consider implementing safety measures and documenting them to attract discounts!  

Pay annually or semi-annually: You may be able to access discounts by paying your premiums in a lump sum rather than monthly installments.  

Avoid frequent changes in providers: While it may be tempting to switch insurers in search of lower rates, doing so can backfire in the long run. Keeping your policy with your current insurer can lead to stable prices at renewal, saving you from sudden premium hikes. 


Navigating the Hard Market: What to Expect  

Hard markets are not new to the insurance industry. The last significant hard market occurred from 2002 to 2008. Historically, hard markets in the insurance industry tend to last around four years. During these periods, you can expect stricter underwriting requirements, changes in coverage options, and potential premium increases. During this time, it’s crucial to:  


Stay Informed: Keep up-to-date with policy changes and industry trends to make informed decisions about your coverage. 

Understand coverage changes: Be aware of alterations in coverage options, such as roof coverage and deductibles, which can affect your premiums. 

Assess underwriting requirements: Stricter underwriting can impact your eligibility and costs. Knowing these requirements can help you maintain or improve your insurability. 


Despite the challenges posed by a hard market, staying informed and proactive can help you weather the storm. By monitoring policy changes, maintaining comprehensive coverage, and considering the long-term benefits of loyalty, you can navigate the current economic uncertainties with confidence. 


Get a Quality Insurance Policy Today With Zinc 

At Zinc, we're dedicated to supporting our customers every step of the way, especially during challenging market conditions. Let us be your reliable guide through the insurance landscape. Reach out today for a personalized quote and discover how we can help you protect your assets and save on premiums. 



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This blog post does not provide insurance advice and is intended for information purposes only. It is not a substitute for professional insurance advice from a licensed representative. Never ignore professional insurance advice because of something you have read in this blog post. Contact your licensed representative if you have any questions about your insurance policy.

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