Understanding the state of the insurance market is essential if you want to get the right amount of coverage for your needs and the best deal available. As we look ahead into 2023, what’s called the ‘hard insurance market’ is expected to continue due to a number of factors, such as inflation. But what does that mean for you, your home, or your business in Georgia? Below we’ve highlighted what a hard market is and why you should prepare now.
What Is a Hard Insurance Market?
The insurance market is cyclical, and it fluctuates between a hard market and a soft market. A hard market is a period when premiums increase, there is a reduced supply of coverage available, and demand is high. During this time, insurers typically issue a limited number of policies.
In contrast, a soft market is a period of lower premiums, greater limits, flexible contracts, and a higher availability of coverage. This means you can expect more types of policies from different insurance brokers.
There are a variety of reasons why we’ve entered a hard market, including:
- The COVID-19 Pandemic
- Natural Disasters
- Economic Recession
- Inflation
Due to an increase in claims in recent years, buyers should plan ahead for hard market conditions here in Georgia and across the country.
Take the Right Steps to Prepare For 2023
Although insurance rates are high, you don’t want to neglect having coverage for unforeseen circumstances and lose money. We recommend examining your current insurance policies to see whether you have the right amount of coverage.
Do you require home insurance, small business insurance, life insurance, car insurance, cybersecurity insurance, or another type of policy? Everyone’s situation is unique, so it’s important to know what you need.
In addition, you’ll want to take steps to mitigate risks, which will decrease the chance of having to make a claim in the future.
To help you make the right decisions, start by talking with an experienced insurance broker like our team at R&R Insurance Group in Greensboro, GA. We’re ready to help guide buyers through this hard market by reviewing your coverage needs and then determining the best policies within your budget.