To rectify undervaluation, Westchester recommended more frequent and in-depth property risk appraisals that take into account more extreme weather events, potential supply chain hurdles and inflation trends. (Credit: investment/stock.adobe.com) To rectify undervaluation, Westchester recommended more frequent and in-depth property risk appraisals that take into account more extreme weather events, potential supply chain hurdles and inflation trends. (Credit: investment/stock.adobe.com)

Commercial property insurance rates have shown significant growth in recent quarters, with Chubb Ltd. reporting a 12% year-on-year rate increase in the third quarter of 2021. Climate change’s influence on natural catastrophes, supply chain challenges and inflation are working concurrently to push rates higher, according to a report from Westchester, Chubb’s wholesale excess and surplus lines division.

In addition to driving up rates, the issues are making underwriting more challenging, according to Westchester. Further, inflationary pressures along with rising costs for labor and building materials are increasing the possibility for undervalued replacement costs.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

More from this author

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.