In January the largest banks in the US lessened their exposure to commercial real estate loans, according to Federal Reserve data. The data also show that construction and development loans have fallen.
Damage claims from more than 900,000 property owners in Florida have reached almost $8 billion, not including flood damage, with about 90% of local claims now closed, the state Office of Insurance Regulation says. The report cites 4 in 10 closed claims as unpaid, largely because losses were below the state's hurricane deductible, the Insurance Information Institute said.
Several indicators suggest that New York City's property market may be nearing a floor as falling property sales start to slow. "I am not sure we are turning a corner in terms of transactions, but it's hard to believe 2018 is going to be lower than 2017," said Shimon Shkury, president of Ariel Property Advisors.
The Dodge Momentum Index dropped 5.1% in January, led by a 7.8% decline in commercial construction activity. However, five projects of $100 million or more entered the planning stages during the month, and the decline in the index came after strong numbers at the end of 2017.
Commercial real estate sales in Manhattan in NYC have slowed to a crawl in the aftermath of the tax overhaul as buyers and sellers disagree on where pricing is headed. Buyers believe the tax bill's effect will be to lower pricing.
The continuing resolution that ended Friday's brief government shutdown includes an extension through March 23 for the National Flood Insurance Program. The NFIP had previously been reauthorized through Feb. 8 as part of a spending measure that ended a three-day shutdown in January.
Cybersecurity risk is growing. This fact, combined with low adoption of cyberinsurance, an active adversary, a fragmented security technology market and a security skills shortage, means it is difficult for many organizations to understand and manage this risk effectively. On Feb. 5, Cisco, Apple, Aon and Allianz announced a new cyberrisk management solution for businesses, comprising cyberresilience evaluation services from Aon, the most secure technology from Cisco and Apple and options for enhanced cyberinsurance coverage from Allianz. The new solution is designed to help a wider range of organizations better manage and protect themselves from cyberrisk associated with ransomware and other malware-related threats, which are the most common threats faced by organizations today. Read more.
Workplace harassment allegations are front page news and the exposure is impacting bottom lines across all industries. With the growing frequency, it's important that corporate leaders revisit available tools to mitigate possible exposures. On Wednesday, Feb. 21, join employment practice experts from Aon and Jackson Lewis for a discussion on evolving exposures, risk transfer solutions and best practices for employers to mitigate their overall risk. Register here.
The greatest achievement was at first and for a time a dream. The oak sleeps in the acorn; the bird waits in the egg. ... Dreams are the seedlings of realities.
James Allen, writer
About Aon Real Estate
Aon’s Real Estate Practice has unmatched expertise in designing and placing competitively priced insurance solutions and our capabilities include a comprehensive range of solutions, including property, casualty, financial services, environmental, construction and additional areas of real estate related risk management. Our fact-based approach combined with market knowledge has helped us become the leading insurance broker. Aon represents more than 30 percent of the largest real estate owners, managers and developers and places more than $1 billion of real estate premiums annually.
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.