X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The issue of valuation is further complicated in catastrophe-prone geographies by the fact that thousands of insured businesses will be seeking construction and professional services, such as roofers and other trades, to begin repairs on their properties all at the same time. As a result, the costs of labor and materials will increase substantially, anywhere from 10-15%, which will directly impact loss costs. (Credit: Gorodenkoff/Shutterstock.com) The issue of valuation is further complicated in catastrophe-prone geographies by the fact that thousands of insured businesses will be seeking construction and professional services, such as roofers and other trades, to begin repairs on their properties all at the same time. As a result, the costs of labor and materials will increase substantially, anywhere from 10-15%, which will directly impact loss costs. (Credit: Gorodenkoff/Shutterstock.com)

Editor’s Note: This article is the final installment of a four-part series from Zurich North America and focuses on the current and historical trends in commercial property lines. Previous articles examined commercial auto insurance, general liability and workers’ compensation.

In looking at near- and medium-term factors that will continue to affect the commercial property insurance markets in the year ahead, it is a certainty that insurers, brokers and customers will continue to experience the effects of inflation combined with more costly natural catastrophes. While there is not universal agreement about whether the tempo of natural catastrophes represents greater frequency, there is no doubt that the impacts of these events are being amplified as more values are exposed with expanding commercial and industrial development in geographies where severe weather occurrences have not had as great an impact in the past.

 

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 © 2022 ALM Global, LLC. All Rights Reserved.