Navigating the commercial real estate (CRE) market is becoming increasingly complex as rising interest rates, market volatility and strict compliance and zoning regulations are pushing insurance costs higher. On a recent episode of AZ Big Podcast, Ryan Donahue shared what CRE companies can do to reduce insurance cost burdens amid a cautious economic climate.
Ryan explained that while insurance used to be an afterthought for many CRE companies, business leaders are realizing why it’s important to be proactive. Being creative in how insurance options are approached can help reduce costs in a still unpredictable market. Well-performing companies may choose to take on a little more risk. On the other hand, businesses that might be enduring financial hardship should begin by appraising losses and risks to identify how they can save.
“It’s been a hard, long seven years for the CRE insurance world,” Ryan said. “It essentially means that the rates have gone up every quarter for seven years in a row. We're finally starting to plateau somewhat, so we are being cautiously optimistic.”
Ryan is a team lead in the construction and real estate practice at Marsh McLennan Agency’s Scottsdale office. He helps clients achieve their business goals when it comes to strategically navigating insurance, risk transfer and risk management – from coverage and gap reviews to safety implementation.
Listen to the full podcast for more insights.
