The expanding cyberinsurance market faces challenges in pricing and risk modeling, with threats constantly evolving and unreported incidents creating uncertainty about the true frequency of cyberattacks, industry experts say. Aon is introducing a joint offering with Hewlett-Packard and also has partnered with Allianz, Apple and Cisco with the goals of enhancing cybersecurity coverage and lowering deductibles.
Market fundamentals appear to back the current property valuations of commercial real estate, despite the Federal Reserve's warnings that prices may be inflated, says Bob Martinek of BDO USA. Rising interest rates could affect valuations, Martinek and BDO's John Provenzano say.
Three weather-related disasters in the US have resulted in $1 billion or more apiece in damage and costs, according to the National Centers for Environmental Information. Those events were two nor'easters on the East Coast and a tornado outbreak in the South, totaling half the yearly average for such $1 billion disasters.
IVANS Insurance Solutions says commercial property insurance pricing at renewals rose 3.1% on average in the first quarter of 2018, compared with 2.9% in the previous quarter. A MarketScout report, meanwhile, says the composite rate for property/casualty insurance increased 2% in the first quarter of 2018, maintaining the upward momentum from the previous quarter.
Property prices can be expected to move down going forward, although there will be some variation among asset classes, according to Green Street Advisors. "Value appreciation has practically stopped in aggregate," said senior analyst Joi Mar.
A measure that has gained a Connecticut legislative committee's approval would mandate that employers keep any video footage of injuries in a workplace, including six hours of footage before the incident and one hour afterward.
Philip Klotzbach of Colorado State University has issued his April forecast for the 2018 Atlantic hurricane season, which says 14 named storms -- including seven hurricanes and three more that might reach Category 3 or higher -- could develop between June and November. The April forecast from Tropical Storm Risk, part of Aon Benfield Research's academic and industry collaboration, says 12 named storms -- including six hurricanes, two of which could strengthen to Category 3 or greater -- could form. Read more.
Aon on Wednesday published its 2018 Risk Maps covering political risk as well as terrorism and political violence, produced in conjunction with Continuum Economics and The Risk Advisory Group. The maps show that political violence risks are rising globally because of geopolitical tensions, a weakening of liberal democratic governance and the repercussive effects of chronic conflicts around the globe. Read more.
There is nothing stronger than those two: patience and time. They will do it all.
Leo Tolstoy, 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.