Opinion: Limited or unreliable information can lead to underinsurance
Brokers need to work with policyholders to push for better quality and more frequent surveys to combat underinsurance. In the current economic climate, this might lead to resistance, but Paul Mayer, valuations manager, Sedgwick argues that getting the sum insured right could be the difference between a bright future or failure for clients.
Think back to a few years ago, and building inflation wasn’t really an issue. Yes, prices were increasing, but inflationary factors were modest, and the general uptick was around 2% to 3%. It wasn’t something to get too concerned about.
Many policyholders do not fully realise the importance of setting the correct sum that is insured at inception, and reviewing the policy at renewal.
Then, over a period of a few years, it all seemed to go horribly wrong. General inflation is currently at
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