Property insurance - understanding why there will be 15% + rate increases in 2022
A combination of higher materials and labour costs will mean insurers are likely to need 9.6% increases just to cover rebuild cost inflation in the UK. However, given most need additional rate strength of around 6% to balance their loss-making property books, this will mean policyholders looking at rate increases of around 15% in 2022 on top of the 2021 increases!
Imports of sawn wood increased by 73% during 2021, steel sections by 60%, the current inflation rate for rebuilding materials is 20.3% which is a record 40 year high. Policyholders MUST understand why this is happening and whether it will continue. This presentation will provide the answers.
Given the rebuild cost inflation is so high, the already significant worry of property under insurance in the UK is going to get worse. It is estimated that over 80% of policies have incorrect property sums insured and that is before the 2022 rebuild cost increases. This webinar looks at the major issue of under insurance in the UK property insurance market, why it is getting worse and how to help your clients avoid the under-insurance trap.
The presentation, delivered by Alan Chandler one of the UK's most popular insurance presenters, is a must for brokers, underwriters and claims staff alike.
Delegates will be able to:
- Understand why property rebuild costs in the UK are increasing at 9.6% and why UK insurers still need rate strength on top of this.
- Understand what needs to be taken into account in respect of setting Building Sums Insured.
- Understand the effects of under insurance for clients and how to aid them in mitigating their exposure to under insurance.
This demonstrates the quality of an event and that it meets CII member CPD scheme requirements.
1 hour's CPD can be claimed for this event if relevant to your learning and development needs.
It is recommended that you keep any evidence of the CPD activity you have completed and upload copies to the recording tool as the CII may ask to see this if your record is selected for review. Details of the scheme can be viewed online at www.cii.co.uk/cpd.