WHITEHOUSE STATION, N.J., Jan. 13, 2022 /PRNewswire/ -- Chubb has issued a new whitepaper, "Why Commercial Property Insurance Prices are Higher, And What Can Be Done About It," which explores the pricing pressures associated with the current state of commercial property underwriting. In addition to explaining the range of complexities having an impact on the current state of underwriting, the paper outlines a number of key considerations and steps industry stakeholders can take to address challenging market conditions moving forward.
The whitepaper, which was developed as a collaboration between Chubb's retail business and its wholesale excess and surplus lines division, Westchester, focuses on the convergence of three specific factors currently affecting the underwriting and pricing of commercial property exposures, including unpredictable weather events and climate change, an historic supply chain crisis, and inflation. The paper also highlights some of the difficulties around risk modeling, determining property replacement costs, and developing proper valuations of insureds' assets.
"Agents and brokers are receiving numerous questions from their commercial risk managers and customers about the state of the property insurance industry, what is impacting cost of coverage, and guidance on ways to navigate challenging market conditions," said Derek Talbott, Senior Vice President, Chubb Group and Division President, North America Property and Specialty. "Chubb's new whitepaper is designed to help them explain those issues and have more meaningful conversations about the right insurance and risk management solutions available to help policyholders in the current environment."
"The insurance industry benefits from having a long history of dealing successfully with a variety of property exposures," added Scott A. Meyer, Senior Vice President, Chubb Group and Division President of Westchester. "While the confluence of the three risk factors described in this paper presents unique challenges, our industry is well positioned to handle them effectively and in a holistic manner. Thus, the time is now for a modernized and better-informed approach to successfully manage these issues for the benefit of all parties involved, including agents and brokers."
Some of the key considerations outlined in Chubb's new whitepaper include:
Download the Why Commercial Property Insurance Prices are Higher, And What Can Be Done About It whitepaper.
Westchester is one of the largest and most diverse excess and surplus lines commercial property and casualty insurance underwriters in the United States. Focused on the wholesale distribution channel, Westchester provides innovative specialty products for property, specialty casualty, environmental, professional risk, inland marine, product recall, small business, binding and programs. The business is further distinguished by exceptional financial strength, underwriting excellence and superior claims handling expertise. Westchester is a Chubb company. Additional information on Westchester can be found at www.westchester.com.
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 31,000 people worldwide. Additional information can be found at: www.chubb.com