Verisk's U.K. Rebuild Value Solution: A Game-Changer for Commercial Property Underwriting

The U.K. commercial property insurance market is at a crossroads. With nearly half of all commercial properties underinsured-leaving businesses exposed to significant financial risks-insurers and brokers are scrambling for solutions to close the gapVerisk Launches New Underwriting Solution to More Quickly Assess Rebuild Value for Commercial Properties in the U.K.^[1]. Enter Verisk, a leader in data analytics for the insurance sector, which launched its Commercial Rebuild Value Solution on October 15, 2025, to tackle this crisis head-onVerisk Launches New Underwriting Solution to More Quickly Assess Rebuild Value for Commercial Properties in the U.K.^[1]. This tool isn't just another incremental improvement; it's a seismic shift in how insurers assess risk, price policies, and mitigate underinsurance-a problem that has cost businesses an estimated 40% of their rebuild costs on averageUnderinsurance hits UK commercial properties^[2].

The Underinsurance Crisis: A $13.9 Billion Problem

The U.K. commercial property insurance market grew to £13.9 billion in 2024, but this growth is shadowed by a persistent underinsurance epidemicUnited Kingdom (UK) Commercial Property Insurance Market^[3]. According to Gallagher, 46% of commercial properties are underinsured, with inflation in construction materials (up 36% since 2020) and labor costs (up 7%) exacerbating the issueUnderinsurance hits UK commercial properties^[2]. The average clause in insurance policies means underinsured businesses receive only proportional payouts, leaving them to cover the rest of the rebuild costs out of pocketMind the Gap: 2025 Underinsurance Report Reveals Major Risk to Businesses^[4]. For example, a property undervalued by 50% would see its insurance payout cut by half-a scenario that could cripple small- to mid-market businesses during a claimMind the Gap: 2025 Underinsurance Report Reveals Major Risk to Businesses^[4].

The financial toll is staggering. Charterfields' 2025 Insurance Gap Report found that 88% of properties are underinsured on building cover, while 77% of plant, equipment, and contents are similarly undervaluedMind the Gap: 2025 Underinsurance Report Reveals Major Risk to Businesses^[4]. This isn't just a risk for businesses; it's a systemic threat to the insurance sector. Insurers face higher claim payouts and prolonged disputes over rebuild values, while brokers struggle to convince clients to update their valuations-a process many neglect for yearsUnderinsurance hits UK commercial properties^[2].

Verisk's Solution: Efficiency, Accuracy, and Scalability

Verisk's new tool addresses these challenges with a blend of cutting-edge data science and practical underwriting tools. By leveraging its proprietary property datasets and a tailored surveyor model, the solution eliminates the need for costly site visitsVerisk Launches New Underwriting Solution to More Quickly Assess Rebuild Value for Commercial Properties in the U.K.^[1]. Instead, insurers can generate precise reinstatement cost estimates using just an address or UPRN (Unique Property Reference Number). This remote assessment capability is a game-changer for small- and mid-market insurers, which often lack the resources to conduct manual valuationsVerisk Launches New Underwriting Solution to More Quickly Assess Rebuild Value for Commercial Properties in the U.K.^[1].

The platform's flexibility is another standout feature. It offers real-time API integration for seamless workflow automation, a web-based mapping portal for visualizing rebuild costs, and a self-service batch tool for large-scale assessmentsVerisk Launches New Underwriting Solution to More Quickly Assess Rebuild Value for Commercial Properties in the U.K.^[1]. Crucially, the data is updated regularly to reflect inflationary pressures in construction materials and labor-a critical factor given the 36% surge in material costs since 2020Underinsurance hits UK commercial properties^[2]. This dynamic updating ensures that insurers aren't relying on outdated data, which is a primary driver of underinsuranceMind the Gap: 2025 Underinsurance Report Reveals Major Risk to Businesses^[4].

Market Impact: A Catalyst for Growth and Risk Mitigation

The potential market impact of Verisk's solution is immense. The U.K. commercial insurance market is projected to grow from $30.44 billion in 2024 to $60.67 billion by 2033 at a 7.14% CAGRUnited Kingdom (UK) Commercial Property Insurance Market^[3]. Verisk's tool directly addresses one of the sector's most pressing pain points: the high cost and inefficiency of underwriting. By reducing the need for manual site visits and accelerating rebuild value assessments, the solution could lower underwriting costs by 30–50% for insurersVerisk Launches New Underwriting Solution to More Quickly Assess Rebuild Value for Commercial Properties in the U.K.^[1]. This efficiency gain is a tailwind for Verisk's revenue growth, as more insurers adopt the platform to streamline operations.

Moreover, the solution's ability to mitigate underinsurance risks is a critical differentiator. For insurers, accurate rebuild value assessments reduce the likelihood of disputes during claims and ensure policies are priced to reflect true risk. For businesses, it provides a clear, data-driven benchmark for updating coverage-a step that 63% of claims managers attribute to rising material costsUnderinsurance hits UK commercial properties^[2]. By aligning declared values with current market realities, Verisk's tool helps close the underinsurance gap, which could reduce the average shortfall from 40% to as low as 10% in high-adoptersMind the Gap: 2025 Underinsurance Report Reveals Major Risk to Businesses^[4].

Investment Implications: A Win-Win for Insurers and Investors

For investors, Verisk's solution represents a compelling opportunity in the insurtech space. The U.K. commercial property market's size and the urgency to address underinsurance create a fertile ground for adoption. With the solution already integrated into underwriting workflows via API and web tools, Verisk is well-positioned to capture a significant share of the marketVerisk Launches New Underwriting Solution to More Quickly Assess Rebuild Value for Commercial Properties in the U.K.^[1].

The financial metrics are equally promising. At a 46% underinsurance rate, the average shortfall of 40% translates to a £5.6 billion gap in 2024 aloneUnderinsurance hits UK commercial properties^[2]. If Verisk's tool reduces this gap by even 20%, it could unlock £1.1 billion in additional premium value for insurers-a figure that underscores the solution's scalability. For Verisk, this translates to recurring revenue from software licenses and data updates, with margins likely bolstered by the platform's low marginal cost of distribution.

Conclusion: A Must-Watch for Insurtech Investors

Verisk's U.K. rebuild value solution isn't just a product-it's a paradigm shift in commercial property underwriting. By addressing the root causes of underinsurance with a scalable, data-driven approach, the company is redefining efficiency and risk mitigation in the insurance sector. For investors, this innovation aligns with broader trends in insurtech, where AI and big data are transforming traditional industries. As the U.K. market grapples with inflationary pressures and rising rebuild costs, Verisk's solution is poised to become a cornerstone of modern underwriting-a must-watch for anyone betting on the future of insurance.