Over the last few years, we’ve seen a surge in prices, an increase in claim conflicts, and an erosion of policy quality throughout the insurance sector. It’s all down to a ‘hard market’ – essentially, an environment where getting coverage is more challenging and expensive.
But what causes a hard market? And how can you create a softer landing for your business? Stick with us to find out.
The driving forces behind the hard market
Events like the Russia-Ukraine war, Brexit, and COVID-19 are all driving fluctuating market conditions. The result is a ripple effect on businesses – forcing them to navigate tighter underwriting standards and higher premiums.
What’s more, the rising cost of claims, combined with increasingly strict regulations and compliance demands, are also contributing to this complex landscape.
The toll of the hard market on growing businesses
The impact of the hard market is felt across multiple fronts – with price hikes and rising insurance premiums placing added pressure on fast-growth businesses. Meanwhile, a surge in claims disputes increases conflict between insurers and policyholders – and businesses may struggle to recover from losses as a result.
Another effect is the erosion of policy quality, where insurers will revise terms and conditions to match the changing landscape. It’s this that makes regular policy reviews even more critical.
The problem with an unchecked insurance policy
As your business grows and the surrounding landscape evolves, so do your risks and requirements. Say your once-local business is now pursuing global expansion – you’ll be exposed to new complexities and potential liabilities. An outdated policy here could lead to gaps in your coverage.
So, if you’ve had the same policy, broker, or insurer for a number of years now, it may be time to review things. And if you rarely hear from your broker or insurer, all the more reason. An insurance broker truly invested in your success will take a proactive approach to your policies – keeping track of your progress to ensure the cover you have in place is effectively safeguarding your next moves.
How a responsive programme supports your success
For every business – but for fast-growth businesses in particular – the importance of a responsive insurance programme can’t be overstated. Policies that seamlessly adjust to accommodate growth and align with new business developments act as a shield for your success.
There’s also minimal disruption – enabling you to focus on new innovations so you can take your enterprise to the next level. No more worrying about whether you’re adequately protected.
Customised coverage with Capsule
Understanding the dynamic evolution of risks is the key to sustainable growth. Only then can you position your scaling business to navigate uncertainties, capitalise on emerging trends, and ultimately make informed decisions that lead to fresh opportunities.
Leading startups and high-growth brands essentially outsource this all to Capsule. They trust us to buy and manage their insurance because our approach is designed to mirror the nature of their operations. Our insurance experts specialise in crafting a programme that supports and adapts to your growth – giving you full freedom to focus on what you do best.
Ready to get started? Get in touch.