Property claims inflation continues to exert pressure on insurance claims costs, despite an overall softening, according to the latest property claims inflation analysis from Claims Consortium Group, the specialist claims management, insurance technology, and weather data provider.
Claims Consortium Group’s anonymised property claims inflation tracker, based on a mixture of its own and publicly available micro and macro data, includes analysis of movements in construction material costs, skills vacancies which drive bottlenecks and broader economic indicators.
The latest report shows that whilst inflationary pressures impacting property claims have eased over the last 18 months, a number of significant pinch points are emerging/have emerged.
Whilst falling steel prices (-7% to -23%), and a stabilisation in imported wood availability and prices (low single-digit growth), have helped ease the pressure on claims costs, there has been a sharp rise in doors and window fittings costs, up 18% in the last year alone, creating a pressure point for repair and maintenance work. There has also been a rise, albeit moderate at this stage, in paint and kitchen furniture costs.
Martyn Cox, Head of Data and Analytics, Claims Consortium Group commented: “Our property