This document discusses how big data can provide insights for real estate companies to better understand and manage their risks. It describes how big data allows companies to analyze large datasets to identify trends and patterns that can improve decision making. Specifically for real estate, big data can help companies understand portfolio risks, comply with energy efficiency regulations, optimize building usage, and reduce costs. However, companies must have proper data handling procedures and security measures in place to safely leverage big data insights while avoiding data theft or loss.
Blockchain technology will make a shift of tectonic proportions in the Insurance and Financial Services Industry. It will change industry’s business model, reorganize relationships, revolutionize existing revenue channels and value creation models. The new eco-system based model will be created, with new principles of value creation, with reformatted customer engagement experiences and with value added business relationships. Industry operations will undergo dramatic change, shifting away from service and request fulfilling activities, to transaction management and orchestration of eco-system activities.
The insurance industry has remained much the same for more than 100 years, but over the past decade it has seen a number of exciting new innovations and new business models.
The paper provides a concrete and pragmatic view of the smart home opportunity for insurers: a deep-dive into key aspects of the smart home trend, the implications for the US home insurance market, and into customer preferences. The paper concludes with a list of “must-have” elements for an insurer in order to deliver the promise of a smart home value proposition.
Blockchain technology will make a shift of tectonic proportions in the Insurance and Financial Services Industry. It will change industry’s business model, reorganize relationships, revolutionize existing revenue channels and value creation models. The new eco-system based model will be created, with new principles of value creation, with reformatted customer engagement experiences and with value added business relationships. Industry operations will undergo dramatic change, shifting away from service and request fulfilling activities, to transaction management and orchestration of eco-system activities.
The insurance industry has remained much the same for more than 100 years, but over the past decade it has seen a number of exciting new innovations and new business models.
The paper provides a concrete and pragmatic view of the smart home opportunity for insurers: a deep-dive into key aspects of the smart home trend, the implications for the US home insurance market, and into customer preferences. The paper concludes with a list of “must-have” elements for an insurer in order to deliver the promise of a smart home value proposition.
The Insurance of Things - How IoT Will Disrupt The Insurance IndustryAtooma Inc
Thanks to the technological convergence which the Internet of Things is, a lot of data is being generated by people and objects. But Big Data is valuable only as long as it is actionable. This amount of available data can and will have a strong impact on every industry in the next few years, providing new opportunities to improve business intelligence and make smarter decisions.
Business insider estimates that there will be 18 billion connected devices by 2018. While considering IoT on a consumer level, Strategy Analytics claims we will have 4,3 smart devices per person on the planet by 2020. Such a horizontal distribution of the internet of things allows insurance companies to estabilish a new dialogue with their customers. On the other hand, it will allow them to design tailor made solutions based on internet of things based analytics.
Being connected has become the talk of the town and insurance companies are surely one of the main interested parts in this discussion, some of them being actual promoters of change and innovation. Traditional players will have a more tough time in adapting to the new paradigm but my view is that they will have to adjust on the long term to the new rules of the game if they want to stay competitive.
Consumers are becoming more and more connected whether it is at home, at work, behind the wheel, when they engage in sports & leisure activities and so on. This is happening quite fast due to the adoption of smart devices and thus the companies have to be able to react accordingly in order to maximize value both for its clients and for itself. The surrounding environment is becoming smart and is being incorporated in the connected ecosystem thus creating new opportunities for insurance companies, opportunities which must be managed appropriately in order to maximize value. Here big data analytics plays a huge role, as the number of collected data & variables is getting higher and higher. To be precise, the discussion focuses on how companies will be able to read the data in order to identify patterns and optimize their business models by controlling loss, perfecting risk assessment and prevention etc.
Insurtech.news - INSIGHT: INSURANCE INTERNET OF THINGS INDUSTRY SURVEYInsurtechNews.com
At the beginning of the year, everyone is looking at how to identify the crucial elements of change that will affect their business in the next twelve months. Discussions from CES 2016 showed that the attention for a lot of companies has turned to connected devices and the internet of things. There are next-gen refrigerators that look like smartphones, smart shoes that track your running habits, and autonomous vehicles that drive for you – that’s just to name a few! But, what we need to ask is who this digital ecosystem is going to affect and what players are being left out of critical first steps of IoT deployment. Recently, FC Business Intelligence asked over 300 insurers what they think the internet of things could deliver for their business. Take a look at the survey infographic featuring insight in to the applications of IoT for insurers for exclusive insight.
Insurers are exploring the blockchain as they see vast potential in this new technology, most common research topics being : travel insurance and crop insurance. With crop insurance : If the bad weather causes any damage to the crops then a smart contract can confirm the loss using weather data and pay claims automatically. Similarly, in case of travel insurance, if the flights gets cancelled by the airline due to a covered reason, then a smart contract built using blockchain technology could automatically enact payment to those with insurance.
This deck contains the information on how you can use the cognitive service in the Microsoft Bot Framework. Technologies used Azure Bot Framework, Azure Cloud and Cognitive Services. You can configure this bot on multiple channels like Web, Telegram, Skype and many more.
Please find the bot URL: https://insurancebotweb.azurewebsites.net/About
I'm pleased to share the first Singapore InsurTech Landscape. The focus is on the start-ups founded in SG, as well as those with regional HQs or major projects (such as Collab). Hats off to a vibrant ecosystem!
Please note that landscapes are living documents. Feel free to DM me on LinkedIn to agree, disagree or add your start-up to the landscape!
Granting insurance cover is a complex process of assessing risks and evaluating claims. Insurers have to sort through large volumes of data to assess the risk involved in a single proposal for insurance cover. At the time of claim, the insurer must ensure that the claim is genuine and this again requires sorting through a sea of data. Experienced underwriters and claim investigators rely on their past experience to underwrite proposals or assess claims. New insurers, however, do not have this advantage. Big data can come to the aid of the insurance industry to help them sort through information and use it to their advantage. Let us find out how big data can help the insurance to tackle the everyday challenges that appear in the business.
Read the full blog here: http://suyati.com/the-role-of-big-data-in-the-insurance-industry/
To get in touch, write to us at: jghosh@suyati.com
People First: The Primacy of the People in the Age of Digital InsuranceAccenture México
John Cusano, Director Global de la Industria de Seguros, dio a conocer cómo la innovación es un habilitador para superar los desafíos que pueden surgir de la adopción de modelos digitales
Accenture research reveals how transforming to a living business enables insurance companies to achieve sustainable growth through hyper-relevance. To learn more visit: https://www.accenture.com/us-en/insights/insurance/living-business
With more than 30 years of experience in the insurance industry, SAS can help you achieve long-term success and obtain peace of mind. Integrated and extensible insurance solutions built on a flexible business analytics framework and insurance-specific data model speed up both implementation and results, giving you a fast track to significant ROI.
Staying ahead in the cyber security game - Sogeti + IBMRick Bouter
Cyber security is center stage in the world today, thanks to almost continuous revelations about incidents and breaches. In this context of unpredictability and insecurity, organizations are redefining their approach to security, trying to find the balance between risk, innovation and cost. At the same time, the field of cyber security is undergoing many dramatic changes, demanding organizations embrace new practices and skill sets.
Cyber security risk is now squarely a business risk – dropping the ball on security can threaten an organization’s future – yet many organizations continue to manage and understand cyber security in the context of the it department. This has to change.
The Insurance of Things - How IoT Will Disrupt The Insurance IndustryAtooma Inc
Thanks to the technological convergence which the Internet of Things is, a lot of data is being generated by people and objects. But Big Data is valuable only as long as it is actionable. This amount of available data can and will have a strong impact on every industry in the next few years, providing new opportunities to improve business intelligence and make smarter decisions.
Business insider estimates that there will be 18 billion connected devices by 2018. While considering IoT on a consumer level, Strategy Analytics claims we will have 4,3 smart devices per person on the planet by 2020. Such a horizontal distribution of the internet of things allows insurance companies to estabilish a new dialogue with their customers. On the other hand, it will allow them to design tailor made solutions based on internet of things based analytics.
Being connected has become the talk of the town and insurance companies are surely one of the main interested parts in this discussion, some of them being actual promoters of change and innovation. Traditional players will have a more tough time in adapting to the new paradigm but my view is that they will have to adjust on the long term to the new rules of the game if they want to stay competitive.
Consumers are becoming more and more connected whether it is at home, at work, behind the wheel, when they engage in sports & leisure activities and so on. This is happening quite fast due to the adoption of smart devices and thus the companies have to be able to react accordingly in order to maximize value both for its clients and for itself. The surrounding environment is becoming smart and is being incorporated in the connected ecosystem thus creating new opportunities for insurance companies, opportunities which must be managed appropriately in order to maximize value. Here big data analytics plays a huge role, as the number of collected data & variables is getting higher and higher. To be precise, the discussion focuses on how companies will be able to read the data in order to identify patterns and optimize their business models by controlling loss, perfecting risk assessment and prevention etc.
Insurtech.news - INSIGHT: INSURANCE INTERNET OF THINGS INDUSTRY SURVEYInsurtechNews.com
At the beginning of the year, everyone is looking at how to identify the crucial elements of change that will affect their business in the next twelve months. Discussions from CES 2016 showed that the attention for a lot of companies has turned to connected devices and the internet of things. There are next-gen refrigerators that look like smartphones, smart shoes that track your running habits, and autonomous vehicles that drive for you – that’s just to name a few! But, what we need to ask is who this digital ecosystem is going to affect and what players are being left out of critical first steps of IoT deployment. Recently, FC Business Intelligence asked over 300 insurers what they think the internet of things could deliver for their business. Take a look at the survey infographic featuring insight in to the applications of IoT for insurers for exclusive insight.
Insurers are exploring the blockchain as they see vast potential in this new technology, most common research topics being : travel insurance and crop insurance. With crop insurance : If the bad weather causes any damage to the crops then a smart contract can confirm the loss using weather data and pay claims automatically. Similarly, in case of travel insurance, if the flights gets cancelled by the airline due to a covered reason, then a smart contract built using blockchain technology could automatically enact payment to those with insurance.
This deck contains the information on how you can use the cognitive service in the Microsoft Bot Framework. Technologies used Azure Bot Framework, Azure Cloud and Cognitive Services. You can configure this bot on multiple channels like Web, Telegram, Skype and many more.
Please find the bot URL: https://insurancebotweb.azurewebsites.net/About
I'm pleased to share the first Singapore InsurTech Landscape. The focus is on the start-ups founded in SG, as well as those with regional HQs or major projects (such as Collab). Hats off to a vibrant ecosystem!
Please note that landscapes are living documents. Feel free to DM me on LinkedIn to agree, disagree or add your start-up to the landscape!
Granting insurance cover is a complex process of assessing risks and evaluating claims. Insurers have to sort through large volumes of data to assess the risk involved in a single proposal for insurance cover. At the time of claim, the insurer must ensure that the claim is genuine and this again requires sorting through a sea of data. Experienced underwriters and claim investigators rely on their past experience to underwrite proposals or assess claims. New insurers, however, do not have this advantage. Big data can come to the aid of the insurance industry to help them sort through information and use it to their advantage. Let us find out how big data can help the insurance to tackle the everyday challenges that appear in the business.
Read the full blog here: http://suyati.com/the-role-of-big-data-in-the-insurance-industry/
To get in touch, write to us at: jghosh@suyati.com
People First: The Primacy of the People in the Age of Digital InsuranceAccenture México
John Cusano, Director Global de la Industria de Seguros, dio a conocer cómo la innovación es un habilitador para superar los desafíos que pueden surgir de la adopción de modelos digitales
Accenture research reveals how transforming to a living business enables insurance companies to achieve sustainable growth through hyper-relevance. To learn more visit: https://www.accenture.com/us-en/insights/insurance/living-business
With more than 30 years of experience in the insurance industry, SAS can help you achieve long-term success and obtain peace of mind. Integrated and extensible insurance solutions built on a flexible business analytics framework and insurance-specific data model speed up both implementation and results, giving you a fast track to significant ROI.
Staying ahead in the cyber security game - Sogeti + IBMRick Bouter
Cyber security is center stage in the world today, thanks to almost continuous revelations about incidents and breaches. In this context of unpredictability and insecurity, organizations are redefining their approach to security, trying to find the balance between risk, innovation and cost. At the same time, the field of cyber security is undergoing many dramatic changes, demanding organizations embrace new practices and skill sets.
Cyber security risk is now squarely a business risk – dropping the ball on security can threaten an organization’s future – yet many organizations continue to manage and understand cyber security in the context of the it department. This has to change.
Presentation for class discussion of how to use the different methods of classroom management to create a good learning atmosphere that is safe, warm, and inviting.
The slides depict the Top five trends in the Insurance Industry in the year 2020. Go through these trends so you can plan your insurance policies accordingly.
https://www.goodison.com/
With support by the CII, Marketforce launched this special report providing a snapshot of the challenges and opportunities the industry is facing - and how to prepared it is to meet them.
Based on responses from over 1000 senior insurers, in this report you will find dedicated chapters on digital, analytics, operations, claims, fraud and more.
Would you like to meet like-minded insurers? On November 7th, 8th and 9th we're holding our 16th annual The Future of General Insurance conference.
Find out more about the event here: http://bit.ly/1TKDIgQ
Shaping the right strategy, managing thebiggest risk.Until recently, the Internet of Things (IoT) was on the strategic agenda of only the largest and most progressive insurers. The IoT was largely viewed as a futuristic concept, and many insurers adopted a “wait and see” attitude.
Catching the Consumer Data Wave: A New Opportunity in the Insurance EcosystemCognizant
With the profusion of insurance consumer data coming online, the role of data intermediaries is emerging as a key player in the insurance ecosystem. Insurance distributors are especially well-suited to take the lead in analyzing leveraging user data and sharing insights to drive innovative product offerings and growth.
Optimizing the Internet of Things: Key Strategies for Commercial InsurersCognizant
The Internet of Things (IoT) is having a significant effect on both consumer-facing and commercial enterprises. At the consumer level, this can be seen in the increasing number of sensor-based smart devices flooding the marketplace. Yet the biggest economic impact is in the industrial and service-based segments, including commercial insurance. By aligning their business requirements with the capabilities of the Internet of Things, insurers can sharpen operational efficiencies, open new revenue streams, drive profitable growth and keep customers close.
In the months and years to come, private sector CEOs and their leadership teams will be able, more and more, to turn to companies with defense sector pedigrees in the quest to monetize actionable insight and drive superior decision-making.
Harnessing the data exhaust stream: Changing the way the insurance game is pl...Accenture Insurance
Vast new data streams create opportunities for insurers to identify and act upon hidden insights, but they also open the door for new business models and competitors.
Data-driven insights make it possible to create new products and new revenue streams, typically in partnership with players from outside the industry.
Harnessing external data is a complex undertaking, but insurers can start by developing a comprehensive plan and then undertaking specific, high-return initiatives that build momentum and help transform the enterprise into a winning competitor in the new digital arena.
Harnessing the data exhaust stream: Changing the way the insurance game is pl...Accenture Insurance
Learn how external insurance data and analytics is changing everything, from pricing risk to interacting with customers. Read more: https://www.accenture.com/us-en/insight-harnessing-external-data-stream
Please find here our first Insurance Review on Digital Disruption of the Insurance sector. We've put together the best, most shared and liked articles on this topic. All articles have been published before on our Financial Services blog
Please find here our first Insurance Review on Digital Disruption of the Insurance sector. We've put together the best, most shared and liked articles on this topic. All articles have been published before on our Financial Services blog
I nostri intervistati si aspettano addirittura un nuovo tipo di
entità assicurativa emergerà entro il prossimo decennio,
come l'Internet delle cose, l'intelligenza artificiale
e blockchain convergono per creare smart, in tempo reale
soluzioni assicurative. Quasi sette su dieci
(69 per cento) ritiene che l'assicurazione verrà nuovamente intermediata
algoritmicamente a intervalli frequenti con un nuovo stile
di aggregatore assicurativo e il 91% si aspetta
questo avverrà entro un periodo di 15 anni.
Are you ready to be an Insurer of Things? How the Internet of Things is chang...Accenture Insurance
The traditional business model for insurance, though still a tremendous source of revenue, is becoming less sustainable in the long term due largely to the rapid innovation that the Internet of Things is driving throughout the economy. Yet, in the midst of this disruption there is opportunity. Insurers will need to dramatically reshape their business model, combining insurance with technology, ecosystem services and partners.
Simpolo Tiles & Bathware
Tile ho,
toh Simpolo.
Since the first steps were taken in 1977, Simpolo Ceramics has carved its niche as a consistently growing organisation with unparalleled innovation and passion rooted in simplicity.
We endure gratification for every experience we offer, created to share something meaningful. It may not resonate with the majority, but that makes us a class apart. If only a handful were to understand the purpose of our existence, we would be proud to have found our believers. Rather, people with whom we can share our beliefs.
VISUALIZER
Design your space in your style with our very own Visualizer. Now, you can choose the tiles of your liking from our wide selection and see how they would look in a space. Select the tile from the multiple options and the visualiser will replace the surfaces in the image with the selected tiles. This way, instead of just your imagination, you can choose the tiles for your place by getting an actual picture of how they would look in a space. So, design your space the way you desire digitally and implement it in real life to get the best results!
You can also share this visualiser with others to help them design their space.
Committed to delighting customers with world-class ceramic products and services. Make Simpolo synonymous with the best quality and set new benchmarks of excellence for all stakeholders. Pursue best business practices with utmost integrity to make Simpolo an exciting organisation to work with, for vendors, channel partners, investors and employees alike.
Gain worldwide recognition in the field of ceramic building products through Research and Innovation and bring an enhanced lifestyle within reach for every household.
Torun Center Residences Istanbul - Listing TurkeyListing Turkey
THERE IS LIFE IN ITS CENTER!
The most energetic spot of the city that will add utterly different pleasures to your life, with a park that will make Istanbul breathe, delighting indoor and outdoor bistros, cafes, restaurants, the brand-new Food Hall concept, where dozens of unique tastes are served together, market area, cinema, theater, fitness club, SPA and event venue...
All the pleasures that will enrich your lives are awaiting you on the most beautiful side of the city, at Torun Center Residences. In Mecidiyeköy, where the heart of Istanbul beats, business, life and entertainment opportunities are located at the exact center, at Torun Center, the most beautiful side of the city.
Penthouse apartments and different styles of flats from 1 + 1 to 4 + 1, from 100 to 425 square meters in a 42-story residence tower, have been designed for those who want to live in the center of magnificence. Torun Center is the redefinition of a better life with specially landscaped floor gardens, apartment options with private balconies, and automatic glass systems equipped with Trickle Ventilation that offers clean air comfort.
Business and life in the same place
Excellent service
Torun Center has many delightful details, from a swimming pool to sunbathing and resting terrace. With 24/7 concierge services, 24/7 security, valet, technical service, closed-circuit camera system (CCTV), central heating and cooling system, it makes your life easier.
Delightful details
The two-story Torun Center Lounge, with its indoor and outdoor seating areas, children's playroom, private dining and TV lounge, promises unforgettable memories to you and your loved ones with its unique Istanbul view.
Neighboring to the most pleasant square of Istanbul
A few steps from the Torun Center Residences, you can reach the city's most modern city square and open the doors of a quality city life. Torun Center Residences brings together on the same project the long-awaited city life for Istanbul and gourmet restaurants, cafes, gym and SPA, and state-of-the-art cinema and Artı Stage, hosting the most famous plays of the season.
Located at the intersection of alternative public transportation options such as the metro and Metrobus, Torun Center comes to the fore as the most accessible office for both sides of Istanbul. With a central location and rich transportation lines, Torun Center offices make life easier for employees and increase productivity.
Need MCA leads? No sweat! MCAs are great for small biz funding. Learn how to snag top-notch leads: businesses needing cash, with repayment ability, decision-makers, and accurate contacts. Use content, social ads, lead platforms, partnerships, and capture processes for quality leads.
https://www.leadgeneration.media/blog/b/streamline-your-mca-sales-process-with-pre-qualified-leads
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
Keep Your Home Naturally Cool and Warm Out Change in Seasons
Vinra Construction is a private limited company registered under the ROC. The management has an experience of over 15 years of understanding the needs and delivering apt solutions to the end users We are providing turnkey solutions in construction fields. like Construction, Interior Designing Facility Management, Plantation Management, etc..
Vinra Construction Tech Enabled Company for Eco-Friendly Home Construction
Contact With Vinra for a Greener Future >>> Call us @ 888 4898 765
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Scanning tenants in NYC requires a thorough and compliant approach to ensure you find reliable renters. For a positive rental experience, consider hiring a property management service. Belgium Management LLC specializes in NYC rental property management and tenant relationship management. We prioritize tenant satisfaction, making us a trusted name in New York property management. Our dedicated team ensures tenants feel valued and supported throughout their lease.
Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
Lixin Azarmehr, a Los Angeles-based real estate development trailblazer, co-founded JL Real Estate Development (JL RED) in 2015 and serves as its CEO. Her expertise has propelled the firm to specialize in luxury residential and mixed-use commercial projects, with a portfolio that features upscale retail spaces and sophisticated care facilities.
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
Brigade Insignia offers meticulously designed apartments with modern architecture and premium finishes. The project features spacious 3,3.5,4 and 5 BHK units, each thoughtfully planned to provide maximum comfort, natural light, and ventilation.
https://www.newprojectbangalore.com/brigade-insignia-yelahanka-bangalore.html
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...Joseph Lewis Aguirre
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus on Public Safety as Job #1, Engagement, Wealth of HOA, Branding, Communication, Culture, Civic Responsibility
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
Urbanrise Paradise on Earth - Unveiling Unprecedented Luxury in Exquisite Vil...JagadishKR1
Immerse yourself in the epitome of luxury living at Urbanrise Paradise on Earth. These opulent 4 BHK villas, nestled off the prestigious Kanakapura Road in Bangalore, redefine elegance and sophistication. With meticulous craftsmanship, breathtaking design, and unparalleled amenities, Urbanrise Paradise on Earth offers a sanctuary where every moment is infused with luxury and serenity. Experience a life of grandeur and indulgence at this exclusive residential enclave.
Urbanrise Paradise on Earth - Unveiling Unprecedented Luxury in Exquisite Vil...
Willis Real Estate Risk Insights Winter 2015
1. Features
BIG DATA
Is the property sector
making the most
of big data?.................................2
GAME CHANGER:
THE 2015 INSURANCE ACT
A special feature by guest
contributor John Hurrell,
CEO of AIRMIC.......................4
EXTREME WEATHER
AND CLIMATE CHANGE
Building resilience
around natural hazards
and climate change..................6
Q&A WITH JON LOVELL
OF HILLBREAK
How sustainability cannot
be an after-thought.................11
Plus other articles
and insights
Real Estate
Risk Insights
Winter 2015www.willis.co.uk
2. Big data refers to computer analysis of
data sets too large for the human mind
to process. Trends and patterns, which
computer algorithms spot, can offer
businesses powerful insight allowing them
to be more efficient, to better understand
their customers or spot trends they may
otherwise have missed. By making better
decisions, companies can reduce costs,
risks and improve their efficiency.
A variety of industries have been tapping into
big data for years. Insurers are able to study data
to model the likelihood of claims arising from
different scenarios, such as extreme weather.
City traders crunch numbers in real time to
buy and sell investments through largely
automated systems.
The world of real estate is clearly less fast-
moving than equities. Yet the sector actually
has a big data machine that was in use decades
before music streaming or online insurance
businesses became popular.
Big data: Is the property sector
making the most of it?
IPD, the benchmarking and analytics firm formerly known as Investment
Property Databank, crunches property rent, value and management
cost data, allowing investors to compare their performance against
a benchmark. While it is routinely used by major investors and fund
managers, it does not cover the entire market. Properties in the mid and
low end – not the kind typically held by the major funds – are excluded,
meaning there is little oversight of many riskier areas of the market.
Unlike equities or commodities, property is a far more complex asset.
The occupier can make a huge impact on returns, so understanding their
business performance versus their sector can also be crucial.
With rules over energy efficiency tightening over the next two years,
better understanding a building’s energy performance when occupied
will also be key for investors and lenders. For those exposed to hundreds
of properties, being able to slice and dice data is a much better way to
properly understand the diversity of risk across their portfolio.
The benefits of big data
By lagging behind in adopting big data, property companies could be
in danger of exposing themselves to potential risks. In a recent survey
of 300 real estate managers, Canadian real estate advisory firm Altus
Group, found that $11 trillion of real estate assets are being managed
by manually inputted spread-sheets.
The errors and risks possibly arising from this state of affairs are
numerous, ranging from simple clerical mistakes to rampant, criminal
abuse by employees. But property firms and investors can harness big
data to give profounder insights into the risks their business may face.
2 Real Estate Risk Insights Winter 2015
3. Generating insights
Investors in real estate, such as fund managers and private equity
houses, will have large portfolios that they may not be tracking
at a granular level.
Big data allows asset managers to see if their portfolio has the
right mix of exposure to different risks and indeed, different assets.
Real estate is a complex asset that can play a variety of roles in a
portfolio, such as adding a defensive element or offering index-linked
income to counterweight more volatile elements of a multi-asset
portfolio. Crucially, rigorous analysis can help ensure investors
are hitting a particular asset class at the optimal opportunity.
The data can also help firms engage with and understand their
regulatory risk. With the minimum energy efficiency standards
(MEES) soon set to be introduced in Europe, property managers will
need to understand exactly how large their risk of being hit by fines is
for not meeting the standards. By using big data they can easily track
what percentage of their portfolio needs to be brought up to the new
standards, and which properties have to be prioritised.
Smart buildings
Big data also enables smart buildings. By using a variety of sensors, smart
buildings can merge a variety of normally independent operating systems
– from heating to lighting – to maximise efficiency and performance.
Data captured across this broad spectrum can also give insights across
the building’s entire lifecycle, from conception and construction,
through tenancy and to demolition.
Insights about whether space is being under utilised can be gleaned from
this, including tracking the parts of an office being occupied via the use
of sensors. This can identify idle space that could be better made use of.
By using big data to shine a light on trends like this, a firm can rationalise
its costs. Fundamentally, this could be as simple as making sure the
building’s main lights are switched off once everyone has left.
Macro vs Micro
Big data can be used at both the macro and
micro level. Particularly for micro applications,
the real benefit is that it can be used in real time,
and so can inform business decisions today,
not tomorrow.
Appraisers would find value in adopting big
data in this way. The insights gleaned from it
can find what price points the market is at -
whether properties are selling above average
or below average. Given that there are so many
data sources for appraisers, using it to condense
them not only saves time, it allows more accurate
thought to be given to the state of the market.
Managing data risk
Properly harnessing big data also involves
having strict rules in place around its use.
Training staff in proper data handling
procedures is vital, as is ensuring that any
IT system has adequate safeguards in place
to prevent either internal or external theft.
While not using big data is a risk, being hacked
and losing that information is also a danger that
is worth protecting against. But with the correct
infrastructure in place, it can give companies
a holistic understanding of their business,
help reduce risk and ensure they’re maximising
their efficiencies.
For more information, please contact:
Paul Turnbull
Head of Client Services, Real Estate Practice
+44 (0)20 3124 6253
turnbullp@willis.com
Winter 2015 Real Estate Risk Insights 3
“Training staff in proper data handling
procedures is vital, as is ensuring that any
IT system has adequate safeguards in place
to prevent either internal or external theft.”
4. A game changer:
The2015InsuranceAct
AspecialfeaturebyourguestcontributorJohnHurrell,CEO,AIRMIC
The 2015 Insurance Act has been years in the making and the
end product is a fantastic result for all in the market. Most
importantly, it creates a new legal framework for commercial
insurance that will give policyholders added protection. But for
all parties – buyer, seller and broker – there is a lot of work still to
be done to ensure a smooth transition when the changes come into
force in August next year.
Why is it so important? Under the current out-of-date legal framework,
many policyholders are frustrated that they do not have reasonable
certainty that policies will pay out if needed. This is largely because
insurers have draconian powers to avoid paying large claims for trivial
or irrelevant reasons.
As many insurance buyers will know from first-hand experience, the use
of basis clauses and warranties can mean that if a company makes an
innocent but trivial mistake, like the misspelling of a name, their insurer
is legally entitled to void the policy. Similarly, claims may be refused
because the buyer has failed to provide all material information at the
time of purchase – even when it had not been requested by the insurer.
It would only be fair to say that the old system works most of the time.
Generally speaking insurers will pay out whenever they think their client
has acted in good faith, but there is no guarantee that this will happen.
And what is the point of insurance if it does not give you total confidence
that it will support you in your moment of need?
SMEs are especially vulnerable to insurers who may choose to exploit
loopholes in the law since they have less buying power and therefore less
clout with insurers and probably do not have the same close relations
with their underwriters as the large multi-national companies.
The Act is therefore a game-changer. When it comes into force next
year it will protect any policyholder who acts in good faith but may have
overlooked some technicality. It will also bring the UK into line with
most other markets.
4 Real Estate Risk Insights Winter 2015
SPECIAL FEATURE
5. By and large, the insurance market has been positive and responsive.
They have recognised that the UK is out of step with the rest of the
world and the provisions of the current regime under the 1906 Act
are indefensible. Certain parts of the London specialty market have
been resistant to some of the changes but now that the Act is law,
I’m expecting the market to embrace it with enthusiasm. Indeed,
although underwriters have until next August, many large insurers
are already underwriting according to the terms of the new law.
Although the reform is overwhelmingly good news for policyholders, there
are obligations for insurance buyers as well as underwriters. For example,
the Act makes clear that insurance buyers will have a duty to disclose
“every material circumstances they know or ought to know”, and ensure
the information is presented in a “clear and accessible” manner.
Indeed, it is important to stress that the new legal framework will
still require commercial insurance buyers to behave in a professional,
thorough manner and to provide accurate information. That means
going through the policy line-by-line with your professional advisers
and making sure that it will do what you want. Perhaps not the most
exciting job in the world, but it could save you a lot of disappointment.
To ensure they are in the best position to take advantage of the changes,
Airmic is urging all insurance managers to make careful preparations
well before the law takes effect, and to talk to their brokers and
underwriters as soon as possible.
Ensuring a smooth transition will require market-wide cooperation.
The Act represents huge change and with any change there is
uncertainty and ambiguity. Buyers, brokers and underwriters need
to have open and frank discussions about how they are interpreting
wordings, what their expectations are from the various parties and
how they expect market norms to evolve.
For example, policyholders need to check that their insurers are
comfortable with their interpretation of what constitutes fair
presentation of risk under the new law, while insurers should be asking
what more they can do to share their views on what they consider
acceptable. All sides of the market will need to ask themselves what
is an acceptable process for a policyholder to undertake to satisfy a
“reasonable search”.
We are now less than 12 months away and it’s better to have conversations
with brokers and underwriters now rather than as the deadline
approaches. This will be vital to ensure a successful transition for all.
The 2015 Insurance Act
There are three core changes that will come
into force in August 2016:
Fair presentation of risk
The bill amends the duty on business
policyholders to disclose risk information to
insurers before entering into an insurance
contract, introducing a duty of ‘fair
presentation’ of the risk.
The new law also provides proportionate
remedies in cases where the duty of fair
presentation has been breached. For example,
if the breach was accidental but the insurer
would have entered into the contract in full
anyway, the insurer still has to pay out in
full. However, if the insurer would have still
entered the contract but on different terms,
the insurer may proportionately reduce the
amount to be paid on a claim. If the breach is
deemed reckless or deliberate, the insurer can
avoid the contract and keep the premium.
Warranties
The bill abolishes “basis of the contract”
clauses, which have the effect of converting
pre-contractual information supplied to
insurers into warranties without further
discussion. It also provides that the insurer’s
liability should be suspended, rather than
discharged entirely, in the event of a breach
of warranty.
The new law also prevents an insurer from
relying on non-compliance with a warranty as
grounds for avoiding liability for a loss of an
entirely different kind than that envisaged by
the warranty. For example, it would no longer
be viable to avoid paying a claim for fire damage
simply because the burglar alarm was not
switched on as the two are clearly unrelated.
Fraudulent claims
The bill provides the insurer with clear,
robust remedies when a policyholder submits
a fraudulent claim.
“Generally speaking insurers will pay out
whenever they think their client has acted
in good faith, but there is no guarantee that
this will happen.”
Winter 2015 Real Estate Risk Insights 5
i
6. A changing climate and rapidly growing
exposure to natural catastrophes presents
the world with an unprecedented challenge.
Natural events such as floods and windstorms
have caused widespread damage to properties
across Europe over the last few decades.
Impacted further through the effects of climate
change and globalised economies, these losses
are likely to increase over time. Such trends
can already be seen when we look at economic
and insured losses as a result of natural disasters
over the last 60 years.
From a pre-loss perspective we can consider
the ways in which real estate owners and
occupiers can help identify highly exposed
facilities, estimate likely losses, ensure adequate
insurance cover is in place and derive solutions
to mitigate future risks.
Building Resilience
around Natural Hazards
and Climate Change
Extreme weather events
Real estate values are being increasingly threatened by extreme weather
events, such as storms, hail, flooding, droughts, tropical cyclones, and
landslides. The risk of flooding has always been present for buildings
close to rivers or coastlines. We also see an increase in flood risks for real
estate portfolios caused by a change in governmental planning strategies
and policies. For example, in the UK, land on a flood plain may now be
considered for new real estate developments given the pressure to provide
new living space in a country with a very high population density.
In addition, climate change as a direct consequence of global warming is
anticipated to increase the future frequency and severity of flooding and
storms (Foresight, 2004; Stern, 2006; IPCC 2013). Flooding can result
from a number of different causes – heavy rain, river, and coastal flooding
all having the potential to result in damage to buildings and associated
contents. It has, for example, been reported that the number of extreme
weather events has doubled globally since the 1980s to an average of over
800 events per year during the past decade. It has been reported that
the monetary losses relating to real estate properties and infrastructure
systems impacted from severe weather events have tripled globally during
the past decade, with direct losses reported from the insurance markets as
amounting to USD150 billion (EUR109.5 billion) per year.
6 Real Estate Risk Insights Winter 2015
7. Winter 2015 Real Estate Risk Insights 7
This would imply there’s a need to have a greater
awareness and understanding of the broader
impact and consequential effects these events can
have on a real estate portfolio so that corporation-
wide they are treated as a strategic issue.
In this context, we are frequently asked by
real estate clients about whether a severe 1:100
year return period flood or windstorm event
will be more frequent in the not too distant
future and what steps can be taken to make the
property portfolio more resilient against these
severe events.
New analytical tools
Today tools and processes exist to help real
estate owners and occupiers identify climate
related risks such as flooding, to the extent that
they gain a reasonable understanding of the
potential losses to a given portfolio and look
at solutions to help them make more informed
decisions around their risk management
needs, whether that is to set risk retention
and insurance limits or to aid risk mitigation
strategies and improve operational resilience.
This can be achieved through the use of
appropriate geospatial mapping techniques to
visualise the properties that may be in or out of
a specific flood zone, coupled with probabilistic
modelling to determine the expected losses the
portfolio could suffer when considering a wide
range of possible flood events that could occur.
Such models are already widely used and have
been for several years within the insurance
market to assist with risk transfer decisions.
They can also help identify which specific properties within a real estate
portfolio are actually driving the overall portfolio exposure, for example
on an average annual loss (AAL) basis.
Once individual sites have been identified these may further benefit from
a ‘deeper-dive’ site inspection and risk assessment to help uncover local
vulnerabilities, estimate the property damage and business interruption
(loss of rent) losses in more depth and provide recommendations to help
reduce future risks at the site.
The resilience of a facility to respond to a natural catastrophe will also
come down to having appropriate business continuity and emergency
response plans in place to minimise the potential downtime from a
major flood or storm and safeguard the wellbeing of occupiers.
Willis uses all of the above approaches to advise clients and to assist
in the pre-loss evaluation and risk management strategies of major
real estate portfolios in Europe and further afield.
For more information, please contact:
Marc Lehmann
Lead Partner, Strategic Risk Consulting
+44 (0)20 3124 6697
marc.lehmann@willis.com
“It has been reported that the monetary
losses relating to real estate properties and
infrastructure systems impacted from severe
weather events have tripled globally during
the past decade, with direct losses reported
from the insurance markets as amounting to
USD150 billion (EUR109.5 billion) per year.”
8. THE RISK OF SANCTIONS
Sanctions are punitive measures imposed on a country by foreign
governments. They can entail trading embargoes as well as freezing
the assets of certain individuals or companies. Any business that
has dealings with a sanctioned country risks being affected.
International sanctions have the ability to take even the most risk aware
by surprise.
For example, at the start of 2014, no one would have foreseen sanctions
being imposed against Russia. But, after unrest in the Russia-Ukrainian
area began in late February, the US, Canada and the European Union
decided to impose sanctions in March against Russia. Anybody with
investment in, or from, Russia would have then had to very quickly judge
how much risk the sanctions exposed them to. This would involve checking
whether any assets are connected to the sanctions, which could include
Russian investors named under the sanctions with links to investments.
Real estate risks
Real estate focused businesses should still ensure adequate provisions
as the unpredictability of sanctions make it vital to be prepared. For
developers and investors, financial sanctions are the most likely sanction
that will affect them, as property deals are unlikely to be affected by
trade sanctions concerned with the flow of commodities.
Financial sanctions generally entail asset-freeze measures affecting the
provision of funds and economic resources to and from political regimes
or certain individuals.
The risk property firms face is that they have either received investment
from, or have invested in, the country under sanctions. This could involve
a sanctioned investor trying to buy up expensive flats in Knightsbridge,
or receiving funds from an off-shore trust fund that has links to a company
or individual named under sanctions.
How much a real estate investor or developer is affected by these
measures is largely dependent on which jurisdiction they are doing
business in.
Broad sanctions have been imposed against certain countries such as
Iran, Sudan and Syria. Broad sanctions effectively target entire countries
and industries therefore making it very difficult to conduct business
within these areas.
However, the risks are lowered once these types of countries are
removed from the equation. With the introduction of smart sanctions
in the early 1990s, it has been possible to target specific individuals or
companies. From a policy perspective, this is an attempt by the West to
reduce any collateral damage sanctions may have outside the country.
8 Real Estate Risk Insights Winter 2015
9. Winter 2015 Real Estate Risk Insights 9
Smart sanctions
In Egypt for example, where smart sanctions
are imposed, only around 20 people are subject
to asset freeze sanctions. Therefore unless a
property investor is actively doing business with
or dealing with funds or economic resources
which belong to, or which are owned, held or
controlled by one of these individuals, their
risk of exposure is low.
Despite smart sanctions looking to reduce any
unwarranted damages, the risk of being affected
still remains if any ties to countries under them
are present. In September 2014, one of Turkey’s
best known and largest banks, Denizbank SA, had
its routine transactions suddenly stopped due
to the Russian sanctions because its owner is a
Russian company. After intensive lobbying, the
US Treasury granted an exemption for the bank.
This example reinforces the fact that due
diligence should be carried out on any
transaction or investment. It is crucial to carry
out extensive background checks into any joint
venture partners before concluding any deal
or investment to calibrate whether they pose
a sanctions related risk to your business.
An example of this could be that a property
firm receives investment from a Russian backer
to invest in prime property in west London.
A thorough scouring of the prospective investor
should be carried out to ensure that the investor
is not one of or has links to the individuals or
companies targeted under financial sanctions.
Knowing who your clients are is vital to ensure
that sanctions do not affect your business.
“For investors or developers, a sudden
imposition of sanctions could mean that
they have to postpone plans for investment
or development in a jurisdiction. In this way,
sanctions can represent an opportunity cost
for businesses.”
New business
Sanctions can also come into play where businesses are able to start new
ventures, investments or developments. For example, it would be very
unlikely that Willis would be able to offer any type of insurance cover
for a new investment, including acquisition or extension of ownership
of real estate and entities located in Crimea and Sevastopol.
For investors or developers, a sudden imposition of sanctions could
mean that they have to postpone plans for investment or development in
a jurisdiction. In this way, sanctions can represent an opportunity cost
for businesses.
DIRECTORS AND ULTIMATE BENEFICIAL OWNERS
It is also important to conduct ‘know your client’ checks on the directors
of the company you are intending to do business with, along with their
ultimate beneficial owners. This is because a company that is owned
50 percent or more by a sanctioned person or entity, even if the company
itself is not sanctioned, results in sanctions status of the designate
party passing indirectly to the non-sanctioned company. Another risk
is if a sanctioned director exercises de facto control over the company
in question. If this threshold is met the sanctions status of the director
can pass indirectly to the company rendering it designated as well.
Whilst the threat of sanctions may not be immediate for property firms
and investors, especially compared to other industries, it is important
to ensure that due diligence is carried out prior to any deal to avert
any potential risk. Businesses should also be aware of the macro
political environment, and define the limits of their risk appetite
before embarking on any new line of business.
For more information, please contact:
Mark Noble
Head of Sales, Real Estate Practice
+44 (0)20 3124 8509
mark.noble@willis.com
10. 10 Real Estate Risk Insights Spring 2015
It is easy perhaps to consider political risk only in the context of
far-flung, less economically developed nations. Mining giant Rio Tinto
experienced multiple delays waiting to receive approval from the
Mongolian government for a roughly USD4 billion expansion of the
Oyu Tolgoi copper mine. These delays meant postponing agreed
financing, which led to the risk that the project would never complete.
But political risk is also a threat here in the UK. The recent shifts in the
political landscape have understandably made many businesses nervous
about increased political risk in the country.
Jeremy Corbyn’s unlikely ascent to the Labour leadership, the rise of the
SNP in Scotland and the threat of Britain leaving the European Union,
all make the UK’s political future more uncertain and unclear than it has
ever been. For build to rent developers and their institutional investors,
UK political risk boils down to two distinct arenas: central government
policy and local politics.
Central and local government
Decisions made at a central level set the tone for decisions made further
down the line, and can lead to significant reforms. For build to rent
developers and investors, there are several crucial policy areas that
central government can affect.
Changes to tax legislation, such as the stamp duty reforms on the bulk
purchase of rented units have encouraged large investors. A reversal of
this policy could see investor appetite reduce for build to rent schemes.
The same applies to recent subsidies, such as the Housing and
Communities Agency’s build to rent fund, where the government shares
the risk and bridges finance for these schemes. This has been popular
with large institutions looking to enter the sector. Just as ‘help to buy’
is a mortgage subsidy scheme for people with a small deposit, such
schemes are created to spike up demand from buyers and investors and
can be scrapped at short notice.
Left-wing politicians also tend to push for higher land taxes, which would
deter investment as developments can become less fiscally feasible. At the
local level, it is the councils that have the control. However, they are often
influenced by central government policy. With Corbyn calling for more
affordable housing, the risk is that sympathetic councils will follow suit,
making schemes unviable, with development eventually grinding to a halt.
Mayors and their powers
Directly elected mayors, such as in London, have
devolved powers that include setting budgets,
overseeing major projects and directing policy.
For London, and as will be the case for
Manchester when the Mayor is elected in 2017,
those powers extend to dictating the pace and
types of housing development. Other cities, such
as Sheffield, are looking to go down a similar
path of devolution of power. The motivation
for Sheffield is the potential control of roughly
GBP900 million in central government money
over the next 30 years.
In London, the policies of Labour mayoral
nominee Sadiq Khan, MP for Tooting, show
little appreciation of the reality of the London
housing market. One of Khan’s policy aims is
to introduce a London living rent, which would
link rents to a third of average incomes. He also
wants the mayor to have the power to freeze
private sector rents. With London a prime target
for professionally developed and managed
rental schemes, the risk of a Khan victory must
be taken into any business case assumptions.
Given that developers of the private rented
sector (PRS) and their financial backers will
have made certain financial assumptions based
on rents, any potential rent cap – which Corbyn
is also in favour of – is a risk that they cannot
ignore. Thankfully, most economists across the
political spectrum consider rent controls to be
misguided for the simple fact that they end up
reducing available housing stock.
Largely speaking, the main political risk factors
for developers are local planning and potentially
punitive taxes on land, which the left often
threaten. For the institutional funded rental
sector, the major threat is of a Khan and Corbyn
rent control regime, or punitive affordable housing
requirements which take no notice of the fact that
building for rent is not like building for sale.
But with the UK having 9 million renters –
a figure that continues to rise – there is hope
that the arguments for a better rental sector
will be listened to by those in power.
Edward Brown is an Account Director
within Willis’ Real Estate Practice.
The risk of
the unexpected
byEdwardBrown
10 Real Estate Risk Insights Winter 2015
OPINION
11. QAwith
Jon Lovell, Co-Founder,
Hillbreak
Hillbreak was founded in 2015 to advise
and train businesses and their people, as
well as policy-makers, on the risks and
value creation opportunities to be found
in effectively addressing environmental,
social and governance issues. Before
launching Hillbreak, founders Jon Lovell
and Miles Keeping led professional
service firm Deloitte’s global and UK
real estate sustainability practice
What risks does sustainability pose
to real estate?
Environmental, Social Governance (ESG)
issues introduce a multitude of risks throughout
the entire real estate cycle. The performance
of real estate assets, in both investment and
occupational terms, is threatened by issues
ranging from climate change to resource
scarcity, and from technology disruption to
urban demographic shifts.
Are investors demanding more from
real estate investment managers?
There’s no question that investors are turning the
screws on their fund and investment managers,
especially those with a long-term view. There is
a clear expectation now that fund managers, and
indeed corporate owners, are more transparent
about their non-financial performance.
A good number of investors are also probing
for reassurances that relevant risks are being
systematically identified and addressed.
How aware should investors and
developers be about climate change?
The financial costs already arising from extreme
weather events, which are increasing materially
as a result of climate change, are quite staggering.
Recent Urban Land Institute research has found
that over the last 10 years, direct monies lost on
real estate and infrastructure has tripled, with
losses now standing at about USD150 billion a year.
Winter 2015 Real Estate Risk Insights 11
That’s saying nothing for the indirect costs to business and communities,
which dwarf those that are measured. Of course, the effects of climate
change extend far beyond damage and disruption from extreme events.
As climates change, the function of many buildings, including the cost
of running them and the comfort and well-being of people using them,
will become undermined. Rates of depreciation and obsolescence will
almost certainly accelerate. Make up your own mind on whether that’s
something to be aware of!
How much of the risk generated by sustainability
is linked to regulation?
Despite retraction in some areas, regulations are tightening and will
continue to do so. As stricter new standards come in, the gap in performance
between newer stock and older stock should widen. In my view though,
regulation per se is not the real risk. It’s the uncertainty, volatility and
inadequate enforcement of regulation which causes problems for the
market. There is, without question, a need for governments to better
manage policy succession and delivery.
But Minimum Energy Efficiency Standards (MEES),
in particular, is a concern for many?
Certainly, MEES, which kicks in from 2018, is a really important one to
get ready for; as things stand, nearly a fifth of buildings with an Energy
Performance Certificate rating fall below the minimum threshold.
The fundamentals of the regulation are pretty clear, but how it will be
implemented and interface with certain property dynamics is less so.
Guidance is needed from the government urgently as MEES is impacting
on fund strategies, transactions and asset plans now. Without much time
to plan that leaves businesses facing avoidable opportunity costs.
What steps should a company be taking to reduce
its sustainability risks?
That’s a big question, and will depend on the circumstances of each
and every organisation. There are some key ‘base’ ingredients though:
executive leadership, internal education, stakeholder engagement,
systematic risk assessment etc. We’ve helped many organisations to reduce
risks, create value and optimise the opex and capex balance, ensuring that
they and their stakeholders are more resilient and profitable.
We have noticed that some of our real estate clients might have research
teams looking at global mega-trends to inform their investment
strategies, whilst sustainability teams are looking at the performance
and resilience of their standing portfolios. These are not always joined
up as effectively as they could be, and that would be something to look at.
12. This Real Estate Risk Insights publication offers a general
overview of its subject matter. It does not necessarily address
every aspect of its subject or every product available in the
market. It is not intended to be, and should not be, used to replace
specific advice relating to individual situations and we do not
offer, and this should not be seen as, legal, accounting or tax
advice. If you intend to take any action or make any decision
on the basis of the content of this publication you should first
seek specific advice from an appropriate professional. Some of
the information in this publication may be compiled from third
party sources we consider to be reliable, however we do not
guarantee and are not responsible for the accuracy of such.
The information given in this publication is believed to be
accurate at the time of publication shown at the front of this
document. This information may have subsequently changed
or have been superseded, and should not be relied upon to be
accurate or suitable after this date. The views expressed are not
necessarily those of the Willis Group. Copyright Willis Limited
2015. All rights reserved.
Willis Real Estate Practice is a trading name of Willis Limited,
Registered number: 181116 England and Wales. Registered
address: 51 Lime Street, London EC3M 7DQ. A Lloyd’s Broker.
Authorised and regulated by the Financial Conduct Authority
for its general insurance mediation activities only.
FP1964 14845/10/15
ABOUT US
Willis is one of the UK’s leading insurance
and risk advisers. We have offices throughout
the UK and over 400 offices worldwide, with
regional teams located close to our clients.
Our Real Estate Practice retains one of
the largest teams dedicated to serving the
insurance and risk management needs of
the property sector in the UK. We arrange
insurance for property values exceeding
£100 billion and place £100 million of
premium into the market.
Our depth of understanding and insight into how
organisations in the property sector create and
maintain value allows us to provide innovative
solutions in the following specialist areas:
construction, legal indemnities, environmental
liabilities, transactional liabilities and the
delivery of service across Europe.
CONTACT US
We would love to hear what you think about
Real Estate Risk Insights. If you have any
colleagues who would like to subscribe to
future editions of the newsletter, please get
in touch.
+44 (0)20 3124 6330
rep@willis.com
www.willis.co.uk
The past few years has seen a resurgence of activity in the real
estate sector. With equity markets continuing to come under
pressure, UK property is still seen as a safe haven for investors.
The stability of the legal, economic and political environment
provides a welcoming marketplace for investment and this
continues to push the market forward.
It was only seven to eight years ago, however, that we saw the property
market fall following the credit crunch; boom and bust was said to
have been driven out of the economy yet the amount of litigation that
followed the property fall was considerable. Claims against surveyors,
property managers and lawyers were frequent and although the number
of claims has reduced in the past couple of years, it will only take another
fall in the property market for this to increase again. While everyone
seems to be looking forward it is important to keep one eye on the risks
involved in any business venture involving property.
Two of the key areas of protection are professional indemnity insurance
and directors’ and officers’ (DO) liability insurance. For professional
service providers, the professional indemnity insurance is vital in the
event of allegations of negligence; for those representing investors, the
pressure directors are under is considerable and ensuring the right DO
cover is in place is equally important. Whenever a venture goes wrong
and a deal does not go the way it is expect to, the blame culture is alive
and thriving. It is during the boom times that professionals need to
remain vigilant and ensure the economic momentum does not lead
them to make many of the same mistakes made less than a decade ago.
Our expertise in this area helps people to realise their ambitions by
analysing the potential downside and making sure this is either managed
or transferred to insurers. History has a habit of repeating itself all too
often and it will be interesting to see when the next economic cycle begins.
For more information, please contact:
Colin Taylor
Executive Director, FINEX Global
+44 (0)20 3193 9418
colin.s.taylor@willis.com
MAINTAINING Professional
vigilance
12 Real Estate Risk Insights Winter 2015