Stricter Practices in the Hard Insurance Market: How Carriers' Scrutiny of Insurance Applications Can Impact Claims Denials
In a hard insurance market, where insurance carriers face challenging economic conditions or increased losses, they may adopt stricter measures to mitigate risks and protect their profitability. One such approach involves closely scrutinizing insurance applications when claims arise. In some cases, carriers may use any errors, misstatements, or dishonest answers found on the application as grounds to deny a claim—even if the claim itself is unrelated to the information provided or would not have been affected had the information been accurate.