The property and casualty insurance market is expected to soften in 2015, giving commercial insurance buyers improved pricing conditions and coverage options throughout the year. The softening is due to ongoing price reductions as well as a lack of major catastrophes.
Overall, losses have been low, save for the August 2014 earthquake in Napa, California, which was the strongest earthquake in northern California in 25 years. The economic loss was estimated to be more than $1 billion.
The insurance industry pricing cycle alternates between periods of soft and hard market conditions. In a hard market, coverage is harder to place and premiums grow. A soft market indicates premiums are stable or falling, and insurance may be more readily available. The insurance market cycle is affected by a variety of factors including economic downturns, catastrophic events, supply and demand.
To understand what the softening market means for you and your insurance coverages, contact Warren G. Bender Co. today. We can help you prepare for any changes down the road.