The property and liability insurance industry fluctuates between periods of increasing insurance rates and tight underwriting standards,and decreasing insurance rates and loosening underwriting standards.Profitability in the industry follows these cyclical movements.What is this pattern of fluctuations called?

Question

Quizplus · Accepted Answer

This pattern of fluctuations is called the underwriting cycle. It refers to the consistent pattern of increasing and decreasing insurance rates and underwriting standards that affect the profitability of the property and liability insurance industry over time. The underwriting cycle is characterized by periods of hard market and soft market.

The Property and Liability Insurance Industry Fluctuates Between Periods of Increasing