Commercial property rates have seen double-digit increases for two straight years and Gary Wells, managing partner at The Liberty Company Insurance Brokers, does not foresee a notable drop any time soon. Last week you were reading What Goes Hand In Hand For Insurers? This week we’re bringing you:
Lloyd’s has announced the appointment of Schroders Solutions as the investment partner of its new investment platform. Schroders Solutions, an open-architecture firm, manages £150 billion (about $196 billion) in global assets for insurance companies and has longstanding partnerships within the Lloyd’s market.
The platform will comprise a series of select funds across asset classes, made available to Lloyd’s market investors who can freely invest in and allocate between them. Third-party managers will be selected for each fund and will be advised by Schroders Solutions. Lloyd’s Central Fund will act as a co-investor.
According to Lloyd’s, the platform is designed to help investors generate attractive risk-adjusted returns on capital and access a wider range of investment opportunities. Consolidating market investment funds under one umbrella will allow participants to benefit from collective economies of scale and lower costs. Environmental, social and governance criteria are embedded in the platform funds, Lloyd’s said.
The U.S. Equal Employment Opportunity Commission will have a 10.6% increase in funding under President Biden’s proposed 2023 budget, while it also plans to continue to increase the number of its employees.
The agency said in a statement Monday the increase to $464.65 million will allow it to continue rebuilding the agency’s capacity.
It said in fiscal year 2021, with the authorization of 450 hires, it ended the year with more than 2,100 employees, which compares with 1,939 in fiscal year 2020 and more than 3,300 in fiscal year 1980.
The agency said it expects to bring its staff level up to 2,300 in fiscal year 2022.
Commercial property rates have seen double-digit increases for two straight years and Gary Wells, managing partner at The Liberty Company Insurance Brokers, does not foresee a notable drop any time soon.
The 2022 outlook for this segment is still quite uncertain as severe weather events continue to present challenges for carriers, brokers, and clients.
“We are still going to see increases, but it won’t be as high as we have experienced over the last couple of years,” he stated.
Another challenge Wells mentioned was the lack of capacity in the industry, especially for property driven accounts.
“During the pandemic, there were many people who couldn’t pay rent as they were receiving less revenue,” he noted. “Couple that with shortages on labor and materials, and insurance carriers requesting major increases on insurable values – those three things combined are really affecting commercial real estate clients.”
Wells deals with multifamily properties and explained that properties in states like Texas and Florida have been particularly hard to handle as carriers are pulling back the amount of capacity they are willing to have in those areas based on weather-related exposures.
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