Soft Market

Soft Market

Soft Market refers to a stage in the insurance market cycle when insurance is more readily available because insurers are financially strong and competing for business. A soft market may occur, for example, after periods of strong financial results, lower claims costs, favourable investment returns, or increased competition among insurers. In response, insurers generally reduce or stabilize premiums, apply more flexible underwriting standards, offer broader coverage, and are willing to provide more insurance. See also: Hard Market.