Inflation, hard market to increase risk of underinsurance

Harminder Chana, director of valuation and analytics at advisory firm John Foord (Asia) Pte Ltd., said that the hard insurance market and rising inflation is increasing the risk of underinsurance for commercial insurance buyers, Commercial Risk reported. While the world was already grappling with inflation following the COVID-19 outbreak and supply chain disruptions, the war in Ukraine has only complicated the situation leading to a volatility in the commodity markets and increased possibility of protracted inflation, which could directly impact the replacement valuations as raw material prices surge.