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Price growth and the incidence of natural catastrophes - new influences in the insurance of production companies

The price of property is rising

Several events this year have had and are having a significant impact on property insurance. All manufacturing companies are facing significant increases in energy and input prices, which is impacting the rising cost of finished goods, particularly in the construction and contracting services industries. These increases of 20 per cent or more are contributing in large part to the complexity of dealing with property insurance claims, including business interruption, where insurers seek to claim underinsurance risk. The only defence of current insurance is to document the correctness of the sums insured in the policies and the justification for how the client arrived at this.

Increase in the incidence of natural catastrophes

Extreme weather events and their increasing frequency in recent years have complicated the operations of companies and households. Droughts, prolonged heatwaves in southern Europe, for example, severe windstorms and hailstorms are slowly but surely becoming commonplace, even though they were seen as extremes just a few years ago. This year, devastating tornadoes have taken several parts of Europe by surprise. Moravia, Italy and Germany experienced the destructive power of this phenomenon with disastrous consequences. Tornadoes are treated as windstorms under insurance and are commonly insured, but a major shortcoming of all insurance policies is the limits of the claims under this title, which until this year no one considered to be inadequate. The reality is already different and it is important to look at these risks more closely and consistently.

From RESPECT you will get:

  • Close cooperation with an experienced insurance broker and the assurance of quality insurance tailored to you.
  • Assistance with property insurance and risk management.
  • We will assess the catastrophe risk in your specific situation and then help determine limits.

Find out more aboutengineering and industrial insurance HEREor you can contact our insurance specialist Ing. Štěpán Černaj by e-mailstepan.cernaj@respect.cz.

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