Inflation, private capital, and insurance: Protecting assets, revenue, and liabilities in a time of global change

In this video we consider the inflationary pressures currently impacting private capital investors and explain why not fully addressing these can be significant.

Inflationary concerns are one of, if not the major headwinds, facing private capital investors. Changes in the global economy throughout the recovery from COVID-19 along with broader geo-political events, are driving inflationary pressures that also change the insurable risk profile of assets. This can put owners, lenders, and other counterparties at greater risk of insurance not fully responding in the event of a loss.

In this video, Marsh’s Martin Bennett and Tom Burrell consider the inflationary pressures currently impacting private capital investors and explain why not fully addressing these can be significant, particularly in the context of insurance.    

Key actions

As investors look to an unpredictable future, they need to have confidence that asset reinstatement values and other inputs shared with insurers remain accurate and up to date. It is therefore more important than ever for firms to consider:

  • Professional revaluation of asset values and reinstatement costs.
  • That business interruption insurance indemnity periods adequately reflect supply chain pressures increasing time required to reinstate damage to assets.
  • Accurate declaration of inflation driven increases to annual revenue and rising workforce costs.

If you would like more information on this topic, please contact your Marsh representative.

Meet the authors

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Tom Burrell

Infrastructure and Energy, Private Equity, Mergers and Acquisitions, Marsh Specialty UK

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Martin Bennett

Managing Director, Private Equity, Mergers and Acquisitions, Marsh Specialty UK