The word from Prestige who see a period of price stability ahead on rebuild costs;
Prestige Underwriting forecast that rebuilding costs will grow no more than 2% per annum until 2030, aligning with the UK consumer price inflation figure from the International Monetary Fund (IMF) until 2028. The in-depth assessment of rebuilding costs was undertaken with Finaccord to forecast future impacts on home insurance.
The forecast is based on an extrapolation of the ABI House Rebuilding Cost Index. Of relevance to the Prestige Underwriting forecast was the sharp rise in costs starting in June 2020 due to disruptions caused by the global COVID-19 pandemic. Although costs experienced a marginal decline over the subsequent 12 months, costs surged again, peaking at an astounding 19.4% for the year to December 2022. By October 2023, the growth rate had moderated to 4%.
The forecast by Prestige Underwriting is one of several key insights on the non-standard market, including in-depth insights and recommendations, available from the Prestige Underwriting website.
Alison Williams, Managing Director at Prestige Underwriting said:
“The dynamic shifts in rebuilding costs underscore the resilience required within the insurance industry. Many will be relieved to see that rebuilding costs will return to stability for the foreseeable future.”
Be the first to comment