--- title: Commercial Underwriting in a Hard Market description: Commercial Underwriting in a Hard Market image: https://blog.steersatlantic.ca/hubfs/Commercial%20Underwriting%20in%20a%20Hard%20Market.png --- [**](https://www.facebook.com/steersatlantic/) [**](https://twitter.com/steersatlantic) [**](https://www.linkedin.com/company/steersinsuranceatlantic/) [**](https://www.instagram.com/steersinsuranceatlantic/) [Home](https://www.steersatlantic.ca/?hsLang=en-ca) [Contact Us](https://www.steersatlantic.ca/contact-otc-insurance-brokers?hsLang=en-ca) 888-295-7474 [![steers-logo-1](https://blog.steersatlantic.ca/hs-fs/hubfs/steers-logo-1.png?width=813&height=321&name=steers-logo-1.png)](https://steersatlantic.ca/) [![GET A QUOTE](https://no-cache.hubspot.com/cta/default/6109970/83e767f7-64ca-4507-b512-9802bad0d339.png)](https://cta-redirect.hubspot.com/cta/redirect/6109970/83e767f7-64ca-4507-b512-9802bad0d339) ![business-meeting](https://blog.steersatlantic.ca/hubfs/OTC_Insurance_February2020%20Theme/Images/business-meeting-1446005-sm-2-1.jpg); ![Contractors Pollution](https://blog.steersatlantic.ca/hubfs/OTC_Insurance_February2020%20Theme/Images/Contractors%20Pollution-2058-72dpi-1-1.png); ![Marine Cargo](https://blog.steersatlantic.ca/hubfs/OTC_Insurance_February2020%20Theme/Images/Marine%20Cargo%2024843636_s-3-1.jpg); ![crime insurance](https://blog.steersatlantic.ca/hubfs/OTC_Insurance_February2020%20Theme/Images/crime%20insurance%2080155537-72dpi-1-1.png); ![business-meeting](https://blog.steersatlantic.ca/hubfs/OTC_Insurance_February2020%20Theme/Images/Condo%20living-room-2155353-72dpi-1-1.jpg); ![Contractors Pollution](https://blog.steersatlantic.ca/hubfs/OTC_Insurance_February2020%20Theme/Images/Auto%20Ins%20Brunette-Teen-in-Red-Car-1.jpg); ![Marine Cargo](https://blog.steersatlantic.ca/hubfs/OTC_Insurance_February2020%20Theme/Images/atvs-2751246-72dpi-1-1.jpg); # Steers Insurance Blog # Commercial Underwriting in a Hard Market Posted by [Steers Blogging Team](https://blog.steersatlantic.ca/blog/author/otc-blogging-team) on Jun 14, 2021 9:03:52 AM - [Tweet](https://twitter.com/share) ![Commercial Underwriting in a Hard Market](https://blog.steersatlantic.ca/hs-fs/hubfs/Commercial%20Underwriting%20in%20a%20Hard%20Market.png?width=1200&name=Commercial%20Underwriting%20in%20a%20Hard%20Market.png) Insurance industry cycles are believed to [last from two to ten years](https://www.psafinancial.com/2013/01/hard-market-vs-soft-market-the-insurance-industrys-cycle-and-why-were-currently-in-a-hard-market/) and are usually affected by world events and natural disasters. Unsurprisingly, the COVID-19 pandemic has caused a hard market for commercial underwriters. Soft markets usually mean lower insurance premiums, broader coverage, relaxed underwriting criteria, increased capacity (more policies and higher limits), and increased competition among insurance carriers. In contrast, a hard market usually means higher insurance premiums, more stringent underwriting criteria, reduced capacity (fewer insurance policies) and less competition among insurance carriers.  The surge in frequency and severity of catastrophic events across the world and the rise in severity for liability losses of all types attributed to [“social inflation](https://www.insurance-canada.ca/2020/11/26/willis-towers-watson-marketplace-realities-hard-market-rates-increase/)” is causing a hard market during the pandemic. As well, the pandemic continues to impact our economy, exacerbating the hard market. Commercial underwriters are trying to understand what clients are doing to mitigate risk and to encourage them to look at their aggregate risk profile. During a hard market, underwriters are more stringent in the information they require and will look more closely at losses, financial records and safety records. The questions being asked to commercial clients are more in-depth and are taking a look at the client’s bird’s eyes view to identifying risk, mitigating risk and the critical components. How an organization is managing its own risk could decide if an insurance company will want to manage it. When asked by [CanadianUnderwriter.ca](https://www.canadianunderwriter.ca/insurance/how-the-hard-market-is-changing-commercial-underwriting-1004208908/?) what commercial clients can do to mitigate risk measures for underwriters, CURIE CEO, Patrick Lundy, responded by saying, “Insurers are looking for well-structured operations and risk-based informed decisions, from the boardroom table right down through the whole organization,” he replied. “Clients need to demonstrate and describe how their organization has developed a strong risk culture and framework that will mitigate risk to people and property while supporting organizational strategy and objectives.” Do you have questions about commercial insurance? [Contact us](https://www.otcinsurance.ca/) for a free commercial insurance assessment. Sources [https://www.canadianunderwriter.ca/insurance/how-the-hard-market-is-changing-commercial-underwriting-1004208908/?](https://www.canadianunderwriter.ca/insurance/how-the-hard-market-is-changing-commercial-underwriting-1004208908/?) [https://www.insurance-canada.ca/2020/11/26/willis-towers-watson-marketplace-realities-hard-market-rates-increase/](https://www.insurance-canada.ca/2020/11/26/willis-towers-watson-marketplace-realities-hard-market-rates-increase/) [https://www.psafinancial.com/2013/01/hard-market-vs-soft-market-the-insurance-industrys-cycle-and-why-were-currently-in-a-hard-market](https://www.psafinancial.com/2013/01/hard-market-vs-soft-market-the-insurance-industrys-cycle-and-why-were-currently-in-a-hard-market) [![Free Commercial Insurance Assessment](https://no-cache.hubspot.com/cta/default/6109970/d6024ff1-3cd1-4ee0-922c-1ec835a5e9ca.png)](https://cta-redirect.hubspot.com/cta/redirect/6109970/d6024ff1-3cd1-4ee0-922c-1ec835a5e9ca) Topics: [Commercial Insurance](https://blog.steersatlantic.ca/blog/tag/commercial-insurance), [Commercial Property Insurance](https://blog.steersatlantic.ca/blog/tag/commercial-property-insurance) ### Does Your Policy Fit you? ![Small Office 104662907](https://blog.steersatlantic.ca/hs-fs/hubfs/Small%20Office%20104662907.png?width=221&name=Small%20Office%20104662907.png) Your business has grown and evolved; perhaps your insurance should too.  Put us to work with our free no obligation assessment.   [![Free Commercial Insurance Assessment](https://no-cache.hubspot.com/cta/default/6109970/8c5d4c50-98f0-4e77-a002-e27b394ca3d3.png)](https://cta-redirect.hubspot.com/cta/redirect/6109970/8c5d4c50-98f0-4e77-a002-e27b394ca3d3) ### Subscribe Here! ### Recent Posts ### Posts by Tag - [Home Insurance (60)](https://blog.steersatlantic.ca/blog/tag/home-insurance) - [Commercial Insurance (55)](https://blog.steersatlantic.ca/blog/tag/commercial-insurance) - [Auto Insurance (15)](https://blog.steersatlantic.ca/blog/tag/auto-insurance) - [Cyber Insurance (15)](https://blog.steersatlantic.ca/blog/tag/cyber-insurance) - [Commercial Property Insurance (12)](https://blog.steersatlantic.ca/blog/tag/commercial-property-insurance) - [Home Base Business (8)](https://blog.steersatlantic.ca/blog/tag/home-base-business) - [About OTC Insurance (7)](https://blog.steersatlantic.ca/blog/tag/about-otc-insurance) - [Environmental Insurance (7)](https://blog.steersatlantic.ca/blog/tag/environmental-insurance) - [Property damage (7)](https://blog.steersatlantic.ca/blog/tag/property-damage) - [Overland Flood Insurance (4)](https://blog.steersatlantic.ca/blog/tag/overland-flood-insurance) - [Continuity Insurance (3)](https://blog.steersatlantic.ca/blog/tag/continuity-insurance) - [Preventative Maintenance (3)](https://blog.steersatlantic.ca/blog/tag/preventative-maintenance) - [Women in Business (3)](https://blog.steersatlantic.ca/blog/tag/women-in-business) - [Inflation (2)](https://blog.steersatlantic.ca/blog/tag/inflation) - [Personal Insurance (2)](https://blog.steersatlantic.ca/blog/tag/personal-insurance) - [Boat Insurance (1)](https://blog.steersatlantic.ca/blog/tag/boat-insurance) - [Health and Safety (1)](https://blog.steersatlantic.ca/blog/tag/health-and-safety) - [Home Inventory Checklist (1)](https://blog.steersatlantic.ca/blog/tag/home-inventory-checklist) - [Travel Insurance (1)](https://blog.steersatlantic.ca/blog/tag/travel-insurance) [See all](https://blog.steersatlantic.ca/blog/commercial-underwriting-in-a-hard-market#) [![steers_reverse](https://blog.steersatlantic.ca/hs-fs/hubfs/steers_reverse.png?width=499&height=257&name=steers_reverse.png)](https://steersatlantic.ca/)   130 Eileen Stubbs Avenue Unit 7 Dartmouth, NS  B3B 2C4 **Tel:** (902) 481-0700 **Toll-Free:** (888) 295-7474 **Fax:** (902) 481-1812 [hello@steersinsurance.com](mailto:hello@steersinsurance.com) © 2023 Steers Atlantic Inc.