Another element to insurance I haven’t seen covered here is that they have their own micro cycles somewhat independent from the macro environment, called hard/s

Another element to insurance I haven’t seen covered here is that they have their own micro cycles somewhat independent from the macro environment, called hard/soft markets. What happens is at some point new entrants or firms that want too grow will offer lower rates and/or loosen underwriting criteria. This forces incumbents to do the same to some extent to stay competitive (soft market). Over time, risk and eventually losses, accumulate. This stops the loose underwriting practices as firms can no longer sustain additional losses. This allows incumbents to raise their rates (hard market). These cycles vary by insurance product but can cause huge revenue swings year to year.