Introduction

The very first article I ever published was in the December 1981 CPCU Journal entitled "The Underwriting Cycle and Investment Income." Historically, the P&C insurance industry had experienced a relatively consistent cycle between soft and hard markets, at least as predictable as the four seasons found in much of the country. The market would soften with competition then harden with increasingly poor loss experience and repeat this process on about a seven-year cycle.

Today, we are in the midst of another hard market, one experienced for the first time by possibly a large segment of industry participants. The purpose of this article is to explain what a "hard market" is all about and offer suggestions for surviving, even thriving, in such a market. A hard market presents both problems and opportunities for agents and carriers.

And it's always good to remember what radio commentator Paul Harvey once said, "In times like these, it's always good to remember that there have always been times like these." With that thought in mind, let's explore the challenges and opportunities presented by the current hard market.