In response to the increasing complexity of real estate risks, LCRE, a provider of insurance solutions for the real estate sector, has launched a comprehensive new offering aimed at tackling these challenges head-on.
This new solution extends beyond traditional physical asset protection, addressing a range of complex risks that have emerged in the current market climate. As insurers face difficulties such as delayed survey turnaround times and limited capacity from Managing General Agents (MGAs), LCRE’s innovation seeks to streamline and enhance the process for brokers managing high-risk cases.
With many MGAs requiring multiple insurers for relatively small risks, LCRE’s solution offers a more efficient approach by consolidating these elements into a single offering. To ensure its effectiveness, the company has partnered with Crawfords and Orbis, providing a robust solution designed to simplify the process for brokers handling complex insurance cases.
“By establishing a strong professional ecosystem, we are proud to deliver a seamless integration of underwriting, risk management, and service within one cohesive network,” said Daniel Keehan, Head of Real Estate at LCRE.
Navigating a Challenging Market Landscape
LCRE’s launch comes at a time when the commercial real estate (CRE) market is under significant strain. Over the past year, concerns over geopolitical tensions, global inflation, and the post-pandemic landscape have dominated insurers’ considerations, potentially signaling a downturn in the sector. According to Gallagher Re, many insurers are revisiting their exposure to legacy assets, particularly as office vacancies rise due to the shift towards remote work.
These concerns persist into 2025. John Morgan Partnership points to inflation, extreme weather events, and labor shortages as key factors that will influence the future of commercial property insurance this year. Despite some relief in material cost inflation last year, a continued rise in construction costs—projected at 3%—may place further strain on property repair and replacement-related claims, as reported by the Building Cost Information Service.
Additionally, insurers are bracing for increased claims due to severe weather events, with projections estimating £560 million in payouts for damage caused by recent storms. The growing frequency and severity of these weather events further compound risks for property insurers.
Labor shortages, which have contributed to higher project costs and extended timelines, also pose challenges. However, emerging technologies like AI and 3D printing may offer solutions to mitigate some of these risks by reducing costs and improving efficiency.
LCRE’s new solution is poised to provide much-needed support in a market fraught with uncertainty, offering brokers the tools they need to navigate this evolving landscape.
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