Note: The Risk Matrix is produced by the Risk and Insurance® editorial team. Liberty Mutual Insurance is the presenting sponsor and has no responsibility for the content.
frequency
impact
Property Valuation
Most commercial property owners don’t realize that the recent rise in inflation means their property valuations may no longer be grounded in reality, potentially leaving them dangerously underinsured.
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impact
Severe Weather and CAT Losses
Economic Volatility
Supply
Chain
Reinsurance Costs
Property Valuation
Geopolitical Events
frequency
Property damages due to extreme weather events — whether they’re as mundane as an early freeze or as catastrophic as a hurricane — are only expected to rise as the effects of climate change become more widespread.
Severe Weather and CAT Losses
High impact
High frequency
Low impact
High frequency
Declining Occupancy
Note: The Risk Matrix is produced by the Risk and Insurance® editorial team. Liberty Mutual Insurance is the presenting sponsor and has no responsibility for the content.
Property damages due to extreme
weather events — whether they’re as mundane as an early freeze or as catastrophic as a hurricane — are only expected to rise as the effects of climate change become more widespread.
Severe Weather and CAT Losses
The U.S. market is experiencing the
most pronounced cycle of price increases in nearly 20 years — one that is seeing greater retention by carriers, a reduction in coverage, and significant rate hikes.
Reinsurance Costs
Some factors contributing to the
recent breakdown in the global supply chain have abated, but others — including a hard labor market, geopolitical events and resulting inflated energy prices — could mean that the threat of building material shortages is far from over.
Supply Chain
While economic growth continues to be strong, a recession may be imminent, impacting property as owners may delay maintenance and repairs to cut costs.
Economic Volatility
The market is looking to price
geopolitical risks such as the war in Ukraine more accurately, given their inflationary impact on energy and raw material costs, which in turn drive property maintenance and repair costs.
Geopolitical Events
For developers, REITs, property managers and others who rely on real estate as a source of income, the uncertainty surrounding commercial occupancy rates is yet another factor to consider when planning for the future.
Declining Occupancy
Rising interest rates and a hardening P&C market will likely prompt insurers to reconsider their appetites — or look to restructure their programs — making it more difficult to obtain new covers for CAT-exposed properties.
Capital
Constraints
Due to the ongoing labor shortage,
owners looking to build or repair damaged property are likely to face longer wait times and greater cost to hire, and possibly an increased risk of on-the-job injuries and fatalities once work begins.
Labor Shortage
Labor
Shortage
High impact
Low frequency
The U.S. market is experiencing the most pronounced cycle of price increases in nearly 20 years — one that is seeing greater retention by carriers, a reduction in coverage, and significant rate hikes.
Reinsurance Costs
High impact
High frequency
Learn More
Most commercial property owners don’t realize that the recent rise in inflation means their property valuations may no longer be grounded in reality, potentially leaving them dangerously underinsured.
Property Valuation
While economic growth continues to be strong, a recession may be imminent, impacting property as owners may delay maintenance and repairs to cut costs.
Economic Volatility
High impact
Low frequency
Some factors contributing to the recent breakdown in the global supply chain have abated, but others — including a hard labor market, geopolitical events and resulting inflated energy prices — could mean that the threat of building material shortages is far from over.
Supply Chain
High impact
High frequency
For developers, REITs, property managers and others who rely on real estate as a source of income, the uncertainty surrounding commercial occupancy rates is yet another factor to consider when planning for the future.
Declining Occupancy
Low impact
Low frequency
The market is looking to price geopolitical risks such as the war in Ukraine more accurately given their inflationary impact on energy and raw material costs that in turn drive property maintenance and repair costs.
Geopolitical Events
Low impact
Low frequency
Rising interest rates and a hardening P&C market will likely prompt insurers to reconsider their appetites — or look to restructure their programs — making it more difficult to obtain new covers for CAT-exposed properties.
Capital Constraints
Due to the ongoing labor shortage, owners looking to build or repair damaged property are likely to face longer wait times and greater cost to hire, and possibly an increased risk of on-the-job injuries and fatalities once work begins.
Labor Shortage
Low impact
High frequency
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Capital
Constraints
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