Increased climate risk has affected the role of real estate insurance and, because risks are mutualised, big claims in one part of the world will affect premiums globally.
“All this increased climate risk is going to have a real impact on the way insurers are going,” said Vanessa Roux Collet, GC Europe, AEW.
She said that some insurers may elect not to cover certain risks, assets, locations or activities at all.
Real estate players and insurers need to work together more said Roux Collet. Real estate professionals need to consult their insurers before starting a development or acquiring an asset, she added.
“You have to discuss with the insurer the material you’re going to use, the location, did they already face any damage in the zone you’re going to build your building.”
Speaking to Real Asset Insight’s Richard Betts she added that there will be an increased role for alternative insurance solutions and for so-called “captive” insurance.
Click on the video above for the full interview or listen to the podcast below.