How A “Hard Market” Can Affect Your Business Insurance


You may have heard your insurance broker reference the term “hard market” when explaining why your insurance premium has gone up, or why it’s difficult to find cover. Broadly speaking, there are two main factors that are causing insurance premiums to go up:


Falling investment returns:

Historically low interest rates, mean that insurers can no longer rely on investment returns to subsidise under-performing portfolios. Insurers are now focusing on underwriting profitability which means raising premiums, tightening underwriting guidelines and being more selective about risk.


Reduced Capacity:

Due to significant losses in 2018, one of the major market’s insurers access, Lloyds of London, has withdrawn significant capacity from the Australian marketplace. In addition, significant claims across several industries has led to a number of major insurers, Australian and American, retreating completely from hard to place risk while also taking firmer positions on price and capacity.


In a hard market, working with an insurance broker that is experienced and professional is even more paramount. You need a broker who understands the risk appetite and capacity of insurers so that they can negotiate favourable premiums and conditions on your behalf.


At Guard Insurance, we’ve been helping businesses with their insurance needs since 2008. All our insurance brokers are university graduates with years of industry experience. We’ll leverage our product knowledge, market contacts and size to negotiate favourable terms on your behalf.


No matter what you do, or how big or small your business is, talk to us, we’re on your side.