The challenge of commercial underinsurance has been well documented in recent months, and though nothing new, the rapid pace of inflation is causing the value of commercial properties to soar.
We’ve been seeing a significant increase in rebuild costs at around 14%, with individual material costs, such as steel and concrete far exceeding this. If insurance businesses haven’t already started talking to clients about the risk of underinsurance, they need to start now.
“Any valuation obtained over six months ago is likely to be outdated due to the rapid pace of inflation so it’s vital that these discussions are had between brokers and policyholders, and brokers and insurers.” – Alun Jones
Alun recently shared his insights on a volatile market with Insurance Business and urged brokers and insurers to work together now to ensure the right information is provided and the right price generated at point of quote to correctly price the risk and avoid awkward conversations further down the line when a claim occurs.
Click here to read the full article in Insurance Business.