Rising replacement prices may contribute to a $30B increase in loss costs
Ensuring insurance to value (ITV) is good for all parties throughout the (re)insurance value chain: Policyholders are better protected in the event of a total loss, insurers can collect premiums appropriate to the risk, and reinsurers can more accurately assess the risk they are assuming from each of their cedants.
Rising replacement prices may contribute to a $30B increase in loss costs
(Re)insurers require granular, timely, and comprehensive replacement costs estimates to successfully navigate today’s volatile, inflationary environment.
Are you addressing key business questions:
Is my data current enough to stay up to date with the changing economic environment?
Am I aligned to claims in the event of a significant loss for properties on my book or cedants in my portfolio?
Am I factoring in all necessary components, including local labor and material costs, for a rebuild?
Is my data partner both reliable and innovative given increasing market pressures?
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As (re)insurers continue to understand and manage losses, models and the global EP curves they generate can give companies information to benchmark potential losses and manage their catastrophe risk.