Navigating A Hard Insurance Market

What is a Hard Market?

Similar to how real estate can fluctuate over time to favor either the buyer or the seller, the insurance market cycles between what is known as hard and soft phases. In the insurance industry, a soft market favors buyers and often means lower premiums and lenient standards. Conversely, a hard market means policyholders will likely face challenges such as higher insurance premiums, stringent underwriting policies, and a reduction in the capacity of insurers to take on new policies. 

Why is my insurance premium increasing? Explained by our CEO, Elizabeth Allen

Factors Leading to a Hard Market

The transition into a hard market is attributed to a mix of global and local factors. Natural disasters, economic downturns, and regulatory changes all play a role. Local economic activities and regional climate conditions also influence the insurance market’s dynamics. For businesses, this holds significant implications such as facing hurdles when securing affordable coverage. At Builtwell Insurance, we work and live in the area we serve. This uniquely positions us to support you through these times of heightened demand and low supply. 

Given Chattanooga’s ongoing growth, the real estate and construction sectors are particularly vulnerable. These industries must navigate not only rising premiums but also coverage limitations, something that can affect project timelines and costs. Given the current circumstances, it’s more critical than ever to be strategic when choosing which businesses you work with.

Why choose a local insurance agent?

Insurance Buying Strategies

Choosing a local insurance provider offers strategic advantages. At Builtwell, our direct experience with Chattanooga allows us to offer tailored support and guidance. We are committed to the welfare of our local businesses and residents. We firmly believe that a ‘one-size-fits-all’ approach is insufficient. We offer personalized, face-to-face meetings in order to fully understand and meet your specific needs the best that we can. 

By working with an insurance company that understands market dynamics, companies can more effectively navigate a hard market. Businesses can weather this market turn best by implementing effective risk management strategies and engaging in proactive insurance planning,

For personalized advice and solutions tailored to the Chattanooga market, don’t hesitate to reach out to Builtwell Insurance. Regardless of market conditions, our team is dedicated to helping your business thrive!