The insurance industry is cyclical in nature based on carriers loss and profitability results. Both hard and soft markets are considered a normal part of the business cycle of insurance and typically run in 8 – 10 year cycles. Several years of quiet tropics have resulted in a soft market cycle more prevalent in coastal states resulting in:
Relaxed underwriting criteria
Increased carrier capacity
Increased competition and additional market options
As an agent, seeking the best coverage options for your client while at the same time retaining good business can be challenging as more markets enter the coastal states.