Only a few years ago, there was considerable debate about whether the insurance market would ever harden again. After almost a decade of relatively soft conditions, some predicted that the historically cyclical industry had finally learned its lessons, as evidenced by a strong and growing balance sheet, stable pricing, abundant capacity, and terms and conditions expanding to provide broader coverage.

Of course, there were signs that all was not perfect. Climate change was clearly increasing both the frequency and severity of natural catastrophes and there were pockets of the market, including property and umbrella, that were known to be underpriced. The overall picture, though, was pretty good for carriers, clients, agents and brokers.