Skip to Main Content

Navigating the Hardening Market

Friday, March 22, 2013

As industry experts closely monitor the market, the state of the insurance industry continues to fluctuate. This can be confusing for business owners trying to forecast future insurance costs while experts try to project whether insurance premiums will rise and by how much.


What is clear is that risk management, loss control and safety continue to be crucial to the success of any business insurance package, regardless of market conditions. Now is a good time to evaluate your business’s risk management plan as a whole to ensure your business can attain favorable pricing regardless of market conditions.


What a Hardening Market Means for Your Business During times of a soft market, like the past few years, business owners see cost reductions in their organization’s insurance premiums, even without a reduction in their risk. As a result, business owners are often unwilling to spend time and resources on loss control and risk management because they already see their insurance premiums dropping. This reduction in pricing is deceptive, setting businesses up for a shock when the market takes a turn.


It’s important to take advantage of the opportunity to get ahead of the game by proactively addressing losses and risks now. When insurance prices begin to climb, those organizations that have taken the initiative to address losses and mitigate risk will see modest increases in premiums. Whereas those that simply rode the market without working to reduce risk will have a harder time placing coverage and won’t be offered as competitive of rates. As a business owner, a 15 percent increase in cost will still be unpleasant, but a 40 percent increase in addition to a reduction in coverage could end up affecting your company’s well-being in the short and long term.


Even if the market doesn’t harden soon or hardens gradually, a business with effective loss control and risk management initiatives will always pay less to secure their firm, even in the softest of markets.


Take Charge of Loss Control The best approach to control losses is to prevent injury and illness, manage claims effectively if you do have a loss and implement cost containment strategies. If you work to reduce risk and prevent loss now the increase in your premiums later will be minimized. The Horton Group, Inc. ’s consultative approach can:

  • Pinpoint your exposures and cost drivers
  • Identify the best loss control solutions to address your unique risks
  • Create a solid business contingency plan to account for disasters and other unpredictable risks
  • Build a company culture focused on safety
  • Manage claims efficiently to keep costs down


Using all the resources available to you from The Horton Group, Inc. , we can help you control costs and ensure your business is protected.

Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.