Use all the tools available to you, especially the analytic tools that steadily improve in their predictive value and ease of use. There are opportunities in the marketplace, which puts an increasing emphasis on the importance of analyzing and understanding your risks and being prepared to present them clearly and effectively to underwriters. So, while the grip of the hard market is loosening, buyers are not yet free from it. Premium increases for most insureds will be driven by inflationary construction costs, heightened reinsurance pressures and possible catastrophe capacity constriction, while valuation of assets will be the key topic of conversation in 2023.Here are some highlights from our 2023 predictions: Extreme weather of all kinds strikes in places where we haven’t seen it before, and places we’ve seen it all too often. Wildfire, not high on our lists a ten years ago, remains on our lists now. Whatever the fallout from the 2022 hurricane season, natural catastrophes loom large for our industry. With retail insurers making immediate adjustments to catastrophe capacity and rate, reinsurers are telegraphing grim renewal conditions for 2023, which would compound the rate and structural pressures we experience today. However, the commercial response has been swift and dramatic. While ultimate economic costs will take some time to play out, there is no doubt that Ian losses lean heavier on the personal lines side than the commercial side. In addition to the personal tragedies that resulted from the punishing landfall, this was a big, albeit unique, loss event. This brings us to the second macro factor we are focused on: Hurricane Ian.Įxtreme weather of all kinds strikes in places where we haven’t seen it before, and places we’ve seen it all too often. This retrenchment is not solely driven by inflation but also by the continuing procession of loss events pushed by the extremes of weather. Property insurers have rekindled their tenacity to drive rate. But insurers have been dealing with these forces for some time now, and pricing adequacy is beginning to turn the market for buyers-rate reductions are possible and even approaching double digits in the best scenarios. On the casualty side, nuclear verdicts fueled by social inflation continue to push tort costs and, subsequently, claims costs higher. Carriers, meanwhile, must recalibrate portfolios based on their growing potential exposure. On the property side, every buyer is challenged to accurately assess and present replacement cost values that go up as the cost of labor and materials goes up. ![]() The Consumer Price Index and slipping purchasing power may headline the news, but there’s also wage inflation, medical inflation, and, as anyone in the casualty world will tell you, social inflation. The first of these factors is inflation in its many forms. ![]() Jamey Dix and Caroline Colnon along with Kern of the Telos Group represented EQ Office.Every buyer is challenged to accurately assess and present replacement cost values that go up as the cost of labor and materials goes up. Matt Carolan and Phil Geiger of JLL represented IMC in the deal. AmTrust Real Estate is putting $100 million into its Loop portfolio of vintage towers to add similar features such as lounges, bars and cafes for tenants who want their buildings to draw employees to commute by offering a social scene only available at the office. Other Loop landlords have since followed suit after getting prodded by the pandemic’s blow to downtown office demand. Those who have signed new leases have tended to do so in newer buildings with high-quality amenities - but for less space than they had before.īlackstone bought Willis Tower for $1.3 billion in 2015, well ahead of the pandemic, and two years later began pouring in cash to perform the upgrades. Firms have found they require less space as many employees still prefer to work from home, at least for one or more days per week. IMC’s decision is rare amid the pandemic as office users cut back on office space even since the virus started to wane this year. By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |