In the latest edition of the Property Insurance Power Panel, experts from major firms like Lockton, EPIC Insurance Brokers, and Gallagher shared insights on the evolving landscape of commercial property insurance. They discussed how insurance carriers are changing their underwriting criteria, the impact of rising material costs, and what this means for deductibles.
The panel highlighted that many carriers are tightening their underwriting standards. This shift is a response to the increasing costs of materials and the overall economic environment. As insurers face higher risks, they are adjusting their policies and pricing strategies to stay viable.
One of the key points discussed was how rising material costs are affecting insurance exposures. As construction and repair costs climb, the potential payouts for claims also increase. This has led to a reevaluation of risk assessments, resulting in higher deductibles and premiums for policyholders.
The discussion provided valuable context for businesses looking to understand the current state of the insurance market. With these changes, companies may need to reassess their coverage and budget for potential increases in their insurance costs.
Overall, the panel emphasized the importance of staying informed and proactive in managing insurance needs in this shifting environment. As the industry adapts, businesses must be ready to adjust their strategies accordingly.