Construction: Risk Challenge and Insurance Solution
While working on a major project, a client was faced with a substantial mid-term delay and a significant increase in costs. The delay was primarily due to permit difficulties and protracted land owner negotiations. Much of the cost increase was due to the unexpected appreciation of local currency against the USD.
Following a rigorous analysis, Marsh was able to differentiate between increased and neutral risk factors to persuade insurers to ignore insurance market conventions for calculating additional premiums.
This achieved a saving to the insured of over USD9 million.