The true cost of rebuild: Why reinstatement values matter
In this IIL property webinar, Andrew Reed explores why RCA (Reinstatement Cost Assessments) sit at the heart of sound underwriting, effective broking and defensible claims outcomes. This session looks beyond headline sums insured to examine what RCAs entail and key considerations for getting rebuild cost assessments right.
Reinstatement Cost Assessments (RCAs) underpin pricing adequacy and fair claims outcomes, yet remain among the most persistent sources of hidden risk within property portfolios. For large and diverse portfolios, maintaining accurate sums insured is inherently challenging. Many portfolios comprise a mix of asset classes, construction types, ages and uses. This makes it difficult to keep RCAs current, particularly when data quality is inconsistent or valuation responsibility is fragmented across multiple stakeholders. As a result, valuations are often rolled forward, indexed or left unchanged for extended periods, increasing the risk of material drift from true rebuild costs.
The post-pandemic environment significantly increased this exposure. Acute shortages of construction materials and skilled labour, combined with disrupted supply chains, are driving inflation. In many cases, sums insured failed to keep pace with these changes. This combination meant that policyholders were increasingly exposed to underinsurance and the application of average, often leading to claims disputes.
Learning objectives:
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Understand the role of Reinstatement Cost Assessments in underwriting and claims outcomes and identify the key drivers of RCA inaccuracy across complex property portfolios and areas often overlooked
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Construction market overview, indices and example of drift, etc. Real-world examples/real-world data/experiences
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Best practice in RCA governance and review cycles, and what to look for in Chartered Surveyors -quality of report, not just DVs, i.e. COPE data, good descriptions easing underwriting, increasing confidence
Chair: Simon Warren, Portfolio Manager, UK Property - Specialty and FAC, DUAL
Venue
Booking information:
You will be sent a confirmation email shortly after booking. If you have not received this within one hour, please contact Patricia Pedraza (020 7397 3911).
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