006 Eight reasons why Net Book Values cannot be used
Accurate assessment of replacement costs using asset registers is probably the most challenging it has ever been in Asia. This is creating problems for insurers, owners of assets, lenders and insurance brokers alike. Many firms attempt to use net book values (NBV) as the basis for sums insured. In this whitepaper, John Foord explains what are some of the reasons why this approach may be flawed.