People in North Carolina's Outer Banks and other coastal areas of the state are beginning to file insurance claims after the flooding and tornadoes caused by Hurricane Dorian, and such storms are likely to influence more purchases of private flood coverage, state Insurance Commissioner Mike Causey said. In South Carolina, Director of Insurance Ray Farmer said residents are "breathing a sigh of relief" as fewer-than-expected insurance claims are emerging in Dorian's aftermath.
In a highly competitive multifamily market, some investors are searching for yield by investing in affordable housing and assets in smaller markets. "We've seen the biggest increase in capital going into secondary and tertiary markets seeking value and opportunity," says Brian McAuliffe, president of capital markets at CBRE.
Demand is outpacing supply in Los Angeles' multifamily market, driven by factors such as employment gains and ongoing household formation, according to a report by Yardi Matrix. Last year, multifamily transactions reached a peak of more than $5.4 billion.
Forward movement regarding an extension of the Terrorism Risk Insurance Act might not occur until the first half of 2020 at the earliest as lawmakers currently are focusing on other legislation, experts say. Aaron Davis of Aon said "anything that provides contract certainty for buyers and insurers over the long term makes far more sense than the incremental extensions" approved in the past.
Some "smart developers" in commercial real estate are complementing their Opportunity Zone projects with qualified Opportunity Zone business funds, said Brian Phillips of The Pearl Fund, which provides venture capital to such businesses. Investors often are unaware that the benefits of Opportunity Zones extend beyond real estate and also can apply to existing operating businesses, startups, infrastructure enhancements and alternative energy projects, said Craig Bernstein of OPZ Bernstein.
As we enter the peak of the 2019 Atlantic Basin hurricane season, a significant number of large-scale natural catastrophes affecting businesses, governments and populations have already transpired globally, recently including Hurricane Dorian. Aon's Be Prepared site is a resource-rich repository of pre- and post-loss materials to help build a more loss-resilient organization. Learn more.
While the health care landscape looks different around the world, every organization faces consistent challenges: rising health care costs for individuals and employers as well as ever-increasing chronic health conditions. Business leaders must balance controlling costs and encouraging their workforce to live healthier lives. Read more.
The strangest, most generous, and proudest of all virtues is true courage.
Michel de Montaigne, writer, philosopher
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.
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