What generally follows higher capacity in an insurance cycle?

In the context of an insurance cycle, higher capacity typically refers to an increased amount of insurance coverage available in the market, often due to the entry of new insurers or existing insurers expanding their operations. This influx of capacity tends to lead to increased competition among insurers, as they strive to attract policyholders.

As competition intensifies, insurers often lower their prices to offer more attractive premiums. This reduction in pricing is a direct response to the higher capacity in the market, where the supply of insurance exceeds the demand. Consequently, policyholders benefit from more favorable pricing, resulting in lower prices for insurance coverage.

In summary, when the insurance market experiences higher capacity, it generally leads to lower prices as insurers compete against one another, creating better opportunities for consumers seeking affordable insurance options.