Tailor-made services for quality support
Valuation of Insurable Assets
It consists of determining the necessary and sufficient capital that must be insured when subscribing to or renewing a non-life insurance policy (the Insurable Value). It represents the current cost to replace or reconstruct an asset—whether a building or equipment—under prevailing technical and economic conditions.
Two reference values are established:
• Replacement Value (Reinstatement Value): The full cost required to rebuild or replace the asset to its original specification, without deduction for age or wear.
• Depreciated Replacement Value (Obsolescence-Adjusted Value): The replacement cost adjusted for physical deterioration, functional obsolescence and economic depreciation.
This dual valuation ensures a precise, defensible basis for underwriting, securing adequate insurance limits and preventing underinsurance or overinsurance.
Determine the right values to secure optimal, high-performance insurance guarantees
The valuation of insurable assets is a strategic exercise that directly conditions the quality, relevance and efficiency of an insurance program. It requires a rigorous methodology capable of identifying, quantifying and justifying the capital to be guaranteed across all asset classes.
This process begins with the precise identification of the capital to be insured: buildings, industrial equipment, production lines, utilities, ancillary installations, storage areas, networks and all operational assets critical to continuity of activity. Each category of asset must be valued according to its technical, economic and functional reality, taking into account construction standards, industrial specifications, replacement cycles and market conditions.
The next step consists of determining the appropriate valuation basis for each guarantee. Certain coverages require reinstatement values, others depreciated replacement values, and others still demand specific treatment—such as equipment under maintenance, critical spare parts, high-value components or assets located in ATEX, high-risk or regulated zones. This ensures that each guarantee reflects the actual insurable exposure.
A key objective is to avoid both over-insurance and under-insurance, two situations that can compromise the efficiency and cost-effectiveness of an insurance program. Over-insurance leads to excessive premiums without added protection, while under-insurance exposes the insured to proportional rule penalties and insufficient indemnification in the event of a claim. The challenge is therefore to achieve the optimal alignment between insured capital and premium, ensuring robust protection at a controlled cost.
Business interruption is an essential dimension. Our approach integrates the simulation of insurable capital in the event of operational loss (Business Interruption / CBI). This includes an in-depth analysis of production downtime, critical path constraints, recovery timelines, supply chain vulnerabilities, alternative production capacities, and the realistic duration required for a full return to normal operations. These simulations enable us to quantify the financial exposure associated with various interruption scenarios and define appropriate BI and CBI limits.
This comprehensive methodology ensures that the insured benefits from an accurate, defensible and strategically optimized valuation, enabling high-quality underwriting, efficient negotiations with insurers, and a program that truly reflects the organisation’s risk profile and operational resilience objectives.
In short, determining the right values is not merely a technical requirement, it is a strategic lever to obtain the best guarantees and protect the insured’s long-term interests with precision and excellence.
Real estate values
Our expert appraisers intervene to determine any type of value according to the rights and real estate concerned:
-
Market value.
-
Value in continued use.
-
Rental value.
-
Right to Lease, Construction Lease.
-
Bare ownership and Usufruct.
-
Value of building rights on land.
These different evaluations will be used to:
-
Sell or acquire real estate (Commerce, activity, housing, etc.).
-
Obtain funding.
-
Prepare a “Sale and Lease back” operation.
-
Pass on a heritage or a business.
-
Create a Civil Real Estate Company.
-
Justify a value to the local administration.
-
Complete a mission of Contribution Commissioner.
-
Unbuckle a financial lease.
-
Prepare a dismemberment of property.
-
Negotiate the sale of a building plot.
