Insurance asset valuations have always been a foundational part of property insurance — but in 2025, they’ve become a high-stakes, high-scrutiny topic. Whether you're a risk manager preparing for renewal, an underwriter assessing replacement costs, or a broker mediating both sides, the accuracy of your property valuations directly affects insurability, premiums, and strategic risk decisions.
That was the focus of a Global Risk Consultants (GRC) webinar, Asset Valuations in 2025: Managing Tariffs, Inflation, and Rising Insurance Scrutiny hosted in conjunction with the Risk Insurance Management Society. The discussion offered both big-picture trends and practical advice. Here are key takeaways that should shape how your organization approaches valuations this year and beyond.
Just as inflation begins to cool, global trade policies are heating up. Tariffs on construction materials and equipment imports are adding unpredictable cost increases — and they’re impacting new projects and replacement cost estimates.
“It’s a fluid situation but tariffs may create a ripple effect similar to what we saw during COVID,” said Justin Chen, Global Manager of Property Valuation Services. “That could mean increased material costs, higher labor costs, and perhaps even supply shortages — but it’s really difficult to know for sure since it’s changing so frequently.”
The takeaway: Even if inflation has slowed, valuation risk remains high due to tariffs and supply chain volatility.
Many companies haven’t updated their Statements of Values in years—some since before the pandemic. But supply chain chaos, labor shortages, and inflation have radically changed what it costs to replace a building or its contents.
“From 2019 to 2023, we saw 35% increases in some property values just from inflation and rising material costs. Many companies were underinsured without even realizing it,” said Natalie Harper, Client Executive at GRC. If those values haven’t been revised, it could result in significant coverage gaps or denied claims.
The takeaway: Review and update your valuations regularly — even if nothing appears to have changed.
Underwriters are no longer accepting vague or unsubstantiated data. During the webinar, panelists discussed real cases where insurers didn’t trust the reported values. One client’s insurer escalated the property values without validation, driving up premiums and creating confusion.
“Once the client got formal third-party appraisals, they regained control — and reduced their cost of risk,” said Harper.
The takeaway: Without credible valuations, you risk higher premiums and strained relationships with carriers.
Valuations aren’t just about satisfying your insurer. They inform every part of your risk strategy, from CAT modeling to reinsurance structuring. “Valuation is the cornerstone of your entire risk program,” said Charlie Carriker, Strategic Sales Manager at GRC.
“It drives your loss estimates, informs your strategy, and builds trust with underwriters.” Solid data not only improves decision-making — it can help justify better terms during renewals.
The takeaway: Treat valuation as a strategic tool, not a compliance task.
If you manage multiple sites, doing on-site appraisals for every location might seem unmanageable. But a hybrid strategy — combining full appraisals for key facilities with desktop valuations for others — can strike the right balance.
“We often do boots-on-the-ground valuations for a few high-value sites, then apply that insight across the portfolio,” said Charlie Carriker. “It’s a cost-effective way to get accurate data without starting from scratch.”
Modern tools and benchmarking allow companies to act quickly — without sacrificing accuracy.
The takeaway: A blended valuation strategy can scale across portfolios without blowing your budget.
It’s easy to assume today’s challenges are unprecedented, but the need for accurate insurance asset valuations dates back centuries. The webinar opened with a fascinating historical look at how property valuation has evolved—from the Great Fire of London in 1666 to the underinsurance fallout after the 1906 San Francisco earthquake.
“Even in a 1919 insurance pamphlet, clients were advised to ‘know the value of their buildings, carry enough insurance, and take steps to prevent fire,’” said Charlie Carriker, referencing an artifact discovered during a site visit. “It’s a reminder that the fundamentals haven’t changed — but the stakes are higher now.”
Understanding this history reinforces the long-term consequences of underinsurance and the enduring importance of reliable data.
The takeaway: The need for accurate valuations is centuries old — and today, the risks of getting it wrong are greater than ever.
As carriers apply more scrutiny to submissions, companies that proactively validate their values will be in a stronger position to negotiate and protect their assets. Want to learn more? Watch the webinar now.
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