Current insurance market conditions provide a “window of opportunity” for insureds to beef up their policies before the cycle turns, according to EBM.

The national broker says rates should not be the main focus for insureds, noting there are several other factors to consider such as coverage adequacy and alternatives to risk financing. 

“A soft market creates opportunities that can be difficult, and sometimes impossible, to secure during harder market cycles,” EBM says. 

“Markets move in cycles … the real story is not premium reductions. While lower premiums are welcome, they should not be the sole focus.” 

While there are no indications that market conditions are about to change in the immediate future, the soft market won’t last forever, EBM said. 

“Premiums often attract the most attention at renewal time, but they are only one part of the equation,” the broker says in its September insurance market update. 

“Favourable market conditions can create opportunities to revisit the scope of cover, understand policy limitations and ensure your insurance program remains aligned to your needs.” 

EBM notes also that the “market isn’t soft for everywhere”, pointing out outcomes continue to vary depending on risk quality, claims experience and industry sector. 

In property, rate reductions are not as widespread as they were earlier in the cycle but many clients are still benefiting from a more competitive market, improved coverage options and greater flexibility at renewal. 

“Where resilience measures can be demonstrated, insurers are often more willing to negotiate terms and provide access to broader natural catastrophe cover,” the market update said. 

Market conditions remain favourable across many commercial insurance classes and at the same time, the forces shaping the future of insurance are evolving. 

“Increasingly, the conversation is shifting beyond price and capacity to focus on data, technology, regulatory expectations and risk quality,” the market update said. 

“As a result, high-quality submissions are becoming more important than ever.”

The full report can be accessed here.