(Note: An updated version of this article is available through our 2020 Construction Insurance Market Recap.)
In the 2019 edition of Constructive Insight, Marsh JLT Specialty’s team of global construction experts discuss the state of the insurance market across key classes of insurance for construction companies around the world.
Globally, the construction insurance market is in a state of transition. A series of major losses and an unprecedented number of carriers withdrawing from underwriting construction business is resulting in a challenging environment for construction companies.
Using a rating scale of 1-10, with 10 being the most challenging of insurance market conditions, our specialists have undertaken an assessment of local market conditions across key construction insurance classes.
The role of an insurance broker is even more challenging in the current environment. The value and importance of ensuring that our clients are suitably prepared is more urgent now than it has been for some time.
The risk transfer process needs to be methodical, organised, and meticulous. The underlining recommendation to our clients is to ensure that suitable amounts of time are allocated to the risk transfer process.
The most crucial stage of any project’s risk transfer to the insurance market is the marketing phase and, in particular, the strategy on how the process will be managed.
The critical factor in developing a successful and competitive insurance program for a project is a correctly structured preparation stage. It’s important in this stage to be able to engage with project personnel to compile a comprehensive understanding and in-depth knowledge of the risk, and also to deliver the most comprehensive underwriting presentation to the very highest standard.
Our experience shows that time and effort dedicated in the early stages to developing and evaluating project information is effective in driving successful risk transfer.
In addition to the market commentary, the publication also includes special features looking at how recent losses are affecting the claims landscape and steps to take in a transitioning market to ensure your insurance renewal is as smooth as possible.
Whether you are budgeting for the coming year or preparing for an upcoming renewal we hope you find the publication insightful.
This page and the referenced article contain general information and do not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of any insurance covers, refer to the specific policy wordings and/or Product Disclosure Statements. Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) arranges the insurance and is not the insurer.
LCPA No. 19/241