In a Soft Market, Continuity Still Matters — And FTA is Here to Support It
The insurance market has now firmly entered a soft cycle. After years of hard market conditions characterised by rising premiums, reduced capacity, and tightening terms, we’re now in a competitive phase: rates are falling, terms are broadening, and new capacity is chasing market share.
While this is a welcome relief for clients, it introduces a critical decision point for brokers: when to move, and when to stay.
The Soft Market Challenge
Increased insurer competition means brokers are receiving cheaper premiums from new markets. But in the rush to present savings, one factor must not be overlooked: continuity of insurer.
For claims-made policies, continuity plays a fundamental role in ensuring smooth claims outcomes. The insurer’s knowledge of the risk, the relationship with the client, and the consistency of wording and approach all help ensure that when something goes wrong, it’s dealt with efficiently and fairly.
Changing insurers purely to save money can introduce unseen risks, especially when wordings diverge, claims philosophies differ, or past issues resurface without historical context.
FTA’s Approach to Continuity
At FTA, we recognise the importance of continuity. Not just for insureds, but for brokers too. As a holding market, we are committed to matching or beating terms from competing markets on our renewals. We value long-term relationships and are proactive in ensuring our renewals remain competitive without compromising on claims certainty or service.
When onboarding new business, we also work to smooth the transition:
- We can offer a Difference in Conditions or Limits (DIC/DIL) clause where needed to bridge any perceived coverage gaps.
- We provide Extended Continuity Clauses to offer comfort when moving from a legacy insurer, helping ensure past exposures are still addressed.
These tools are designed to give brokers and clients confidence, whether staying with FTA or moving to us from another provider.
Broker Responsibility in a Soft Market
As the market softens, the broker’s role becomes more complex. It’s no longer just about finding a lower premium; it’s about assessing the total value of the cover, including claims certainty, wordings stability, and the strategic relationship with the insurer.
Brokers should always go back to the holding market before recommending a move. More often than not, the incumbent, particularly one like FTA, can sharpen terms, and the client gets the best of both worlds: a competitive premium and uninterrupted continuity.
Final Thought
Soft markets are great for negotiating better terms. But they’re also where long-term thinking counts most. With FTA, brokers don’t have to choose between value and stability. We compete. We commit. And we’re here to make continuity a smart choice, not a compromise.