Hurricane Matthew caused economic losses estimated at $15 billion, including record-setting insured losses of at least $400 million in the Bahamas, according to an Aon Benfield report. Matthew caused at least 604 deaths and broke the record for longest sustained Category 4 and 5 intensity for an October hurricane in the Atlantic Ocean.
North American respondents to Aon's 2017 Global Risk Management Survey cited cyberrisk as their top risk concern. The survey's results also highlight worries that social media adds increased risk of damage to reputation and brand.
Bank lending for commercial real estate dropped to 7.7% in the first quarter, down from 11.6% in the same quarter a year ago, according to weekly Federal Reserve data. Some of the reasons for this two-year low in lending growth include concerns over multifamily and retail property fundamentals, a slowdown in sales, and rising construction costs.
Commercial real estate sales, commercial mortgage-backed securities origination, prices and fundamentals are expected to perform higher than the industry average in the coming years -- but many of these indicators will be at lower levels than the high-water marks of the recent past, according to the Urban Land Institute Center for Capital Markets and Real Estate. The survey results point to restrained optimism, said ULI leader and survey participant William Maher.
Rising property values coupled with low interest rates have kept the so-called wall of maturities for commercial real estate debt from swamping the capital markets with defaults this year and last. About two-thirds of loans set to mature over the past two years were paid off by maturity, and more than 80% were paid off six months after maturity, according to Trepp.
The American Academy of Actuaries says the National Flood Insurance Program has options, including potential public contributions, that could help address its debt and future obligations. The group's report also examines possible effects of flood insurance privatization and makes other suggestions for overhauling the NFIP.
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