TORONTO, ON, JUNE 13, 2022 /insPRESS/ – All industries go through boom and bust cycles, and the insurance industry is no exception. The current state of the industry suggests that we are in the contraction phase of the cycle, also known as the “hard market” situation, but will eventually move into the “soft market” phase.
Here is a brief overview of CHES Special Risk, President and CEO Gary Hirst, an industry veteran who has witnessed all kinds of transitions. Here is his point of view:
“Hard Market: Underwriting becomes more difficult and stricter during a hard market.”
MGA’s – The Hard Market Broker’s “Survival Kit”!
In today’s tough market, MGAs are the industry’s unsung heroes; the “survival kit” for retail brokers. Where national markets shrink or retreat, and underwriting becomes tighter, independent MGAs provide capabilities and help brokers place risk and execute investments.
“At CHES, we have kept an eye on the hard market and broker activity. We have changed and expanded our capacity and flexibility to help brokers with challenging risky investments. We now have four times the capacity we had this time last year and support over 1,200 IBC codes,” said Gary Hirst, CEO and President of CHES Special Risk, who has 35 years of expertise in the insurance industry.
The change in the industrial landscape is inevitable…
As stated earlier, all industries go through cycles of change in the market landscape, and we are now witnessing a cooling of the markets and will gradually move into the “soft market” phase.
“Market conditions are subject to change over time – it’s a continuous cycle; the insurance industry went through a soft market phase 10 years ago, and it eventually turned into the hard market we are in now and which is set to change in the near future,” added Hirst.
The difference between a soft market and a hard market – What you need to know!
The hard market operates on characteristics such as reduced capacity, higher insurance premiums and stringent underwriting criteria. On the other hand, the soft market offers wider market choice, which results in increased appetite and lower insurance rates for brokers.
“While market easing may seem attractive to brokers, brokers should be aware of the downsides: they may not be getting the best coverage at low prices.” There will be inconsistencies in product and service quality,” Hirst said, expressing concern for retail brokers.
“That being said, in any changing market situation, brokers can rely on AGs such as CHES; we are here to help brokers with top quality products and great service, and we guarantee to continue to do so regardless,” added Hirst.
ABOUT CHES Special Risks Inc.
CHES Special Risk Inc. was established as a managing general agent and wholesale broker in 2004, in response to broker demand in an increasingly tough market, beginning with a particular specialty in the entertainment industry and hospitality, later becoming a fully accredited Lloyd’s cover holder in 2009. CHES Special Risk and Sister Companies are a fully independent MGA offering ‘A’ rated capacity in both hard to place classes and standard lines and support their retail brokers in growing and developing their businesses.
Additional information regarding CHES Special Risk can be found at: http://www.CHESspecialrisk.ca.
If you would like more information on this subject, call us at 416-452-7850 or email [email protected]