Kroll Managing Director: Property Values Continue to Rise
Risk managers need to continue to review and appraise the insured value of their properties to keep up with changing conditions, said Patrick Collins, managing director at Kroll.
What are you seeing in terms of property valuations?
Values continue to go up — material, labor costs, it's going to continue. We hear about inflation every day. So values are always going to continue to rise. As it relates to valuations and kind of being top of mind, we think underwriters are going to continue with that aspect, they're going to continue to want good data for underwriting purposes.
Where do you see the market going forward?
We think this is kind of just best practices go forward. We tried to set up our clients on kind of a rolling appraisals, get on site appraisals, get good data every year. So it's just part of the risk management function. So it's not something they do every 10 years or just kind of cobbled together once in a while, this is going to be part of the regular risk management program.
Do you expect property values to continue to rise?
Property values will continue to rise, there might be a bit of a flattening here over the next as we get through and things tend to normalize, but it's a really interesting time in the world with supply chain challenges, the war everything else, labor continues to rise. So yeah, it's going to continue that way for a while.