Only 5% of real estate investors confident about having proper insurance

According to a WTW report, 64% of real estate managers struggle to secure suitable insurance in hardening market.

The real estate sector has faced challenges, including shifts in demand for office and retail space, inflation, and rising interest rates. Despite these headwinds, firms are optimistic in 2024, yet only 5% of them feel they have enough insurance to cover climate-related loss.

According to the Global Real Estate Risk Outlook Report by WTW, real estate managers also face challenges in obtaining suitable insurance and risk transfer solutions, with 64% citing this as a major obstacle.

The hardening market conditions make securing adequate property and casualty coverage at acceptable prices increasingly difficult. Budget constraints further limit alternative options for managing risks.

The survey reveals significant gaps in insurance coverage, especially in areas where companies have experienced losses.

Despite 66% reporting significant impacts from climate-related losses, only 10% are confident in having sufficient insurance to mitigate severe impacts from extreme weather events.

ALSO READ: 20% of Singapore’s motor insurance claims are fraudulent – GIA

The report emphasises the need for a strategic approach to enhancing risk management strategies, ensuring comprehensive data access, and securing adequate insurance coverage.

With the increasing frequency and severity of extreme weather events, a resilient and adaptable risk management framework becomes vital.

To minimise risks, the report suggests taking stock of building locations, providing complete address data, collecting building characteristics, and working with risk and analytics teams to implement survey programs.

Optimising insurance cover involves using quantification tools, reviewing policy terms, and considering alternatives like parametric solutions.

The report, based on insights from 350 global companies, highlights challenges in obtaining comprehensive data for effective risk management.

Follow the link for more news on

WTW

Also Read

Tysers appoints new leaders to enhance APAC operations

Tokio Marine Kiln appoints new marine leader for APAC

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit