A market in which insurance companies limit the supply of insurance and increase prices, leading to high levels of profitability. Such a market is typically characterized by raised underwriting standards because market demand exceeds supply. Hard market conditions typically results in increased profitability and reduced claims, which, consequently, cause underwriting profits and expanded underwriting capacity. An example is the hard market conditions that inflicted the property and casualty (P&C) insurance business between 2003-2007