All industries go through expansion and contraction cycles, and the insurance industry is no exception.
The current state of the industry suggests that we are in the contraction stage of the cycle, also known as the “Hard Market” situation but will eventually transition into the “Soft Market” phase.

Here’s a brief overview from CHES Special Risk, President & CEO, Gary Hirst, an industry veteran who has witnessed all kind of transitions. Here is his take on:
“Hard Market: Underwriting becomes more difficult and stringent during a Hard market.”

MGA’s – Broker’s ‘survival kit’ in the Hard Market!

In the current hard market, MGAs are the industry’s unsung heroes; the ‘survival kit’ for retail brokers. Where domestic markets are shrinking or withdrawing, and where underwriting is becoming more stringent, independent MGA offer capacities and assist brokers in placing risks and completing placements.

“At CHES, we’ve been keeping an eye on the Hard Market and the brokers’ activity. We’ve changed and expanded our capability and flexibility to help brokers with difficult risk placements. We now have four times the capacity we had this time last year, and we support over 1,200 IBC codes,” – Gary Hirst, CEO and President of CHES Special Risk, who has 35 years of expertise in the insurance industry.

The change in the industry landscape is inevitable…

As previously stated, all industries go through cycles of change in market landscape, and we are now seeing markets cooling down and will gradually transition into the ‘Soft Market’ phase.

“Market conditions are prone to change in time – it is a continuous cycle; the Insurance Industry ran through a Soft market phase 10 years ago, and it eventually changed into the Hard Market that we are presently in which is further bound to change in near future” – Gary Hirst.

The Difference Between a Soft and a Hard Market – What You Should Know!

The hard market operates on the features such as reduced capacity, higher insurance premiums, and stringent underwriting criteria.

On the other hand, the soft market offers wider market choice resulting in increased appetite and lower insurance rates for brokers.

“While market softening may appear appealing to brokers, brokers must be aware of the drawbacks: they may not get the best coverage at low prices." There will be inconsistency in product and service quality.” – Gary Hirst, mentioned expressing concern for retail brokers.

“That being said, in any changing market situation, brokers can rely on MGAs such as CHES; we are here to help brokers with superior products and excellent service, and we guarantee to continue doing so regardless,” – Gary Hirst.

Google Reviews

My experience working with Ches and specifically Alex Blair Johns has been first class. In the midst of a hardening market, Ches has demonstrated to me that they are a partner committed to serve the Brokerage community and its Clients by positioning themselves as a solutions oriented leader.

James Asaad

Over all it's a very good company. I have brought Life science insurance from them and I am very much happy with them.

Richard Harris

CHES is a company that cares about the development of its employees and ensures that it brings real added value to its customers!

Francois Chretien