Skip to main content
main content, press tab to continue
Article

Construction – crucial to differentiate your risk in ongoing hard market

July 23, 2021

Heightened scrutiny on risks in the construction sector is prolonging the hard insurance market and maintaining upward pressure on premiums.
N/A
N/A

The Contract Works insurance market is one of the few areas of the construction industry showing some signs of moderation in premium increases, with sustained upward pressure in the sector continuing.

Some major policies are facing significant premium hikes, particularly Primary Construction Liability and Design & Construct Professional Indemnity.

The hard market is exacerbated by insurers exiting the Australian sector altogether. Those who remain are becoming ever more selective in offering capacity, and moving away from underperforming sectors, occupations and poor performing clients. For the capacity that exists, there are premium and deductible increases and greater insurer scrutiny on policy terms and conditions.

Renewable energy, high rise residential and waste to energy are particularly challenging areas with many insurers not willing to provide cover, leaving open the possibility of businesses or projects being uninsured, or the cost of the cover being uneconomical.

Our insurance market update, which you can download below, confirms insurers are still scrutinising prior loss histories and notifications, with non-conforming cladding and structural defects being a focus.

It remains crucial for clients to differentiate their risks to insurers with comprehensive and quality information on their businesses and processes.

Download

Title File Type File Size
Australian Construction Market Update PDF .1 MB

Contacts


Broking Director, Construction Risks

Regional Construction Leader, Australasia

Iain leads our Australasian Construction team servicing all facets of the industry, managing global insurance programs for large international contractors, principals and financiers.


Related content tags, list of links Article Construction Australia
Contact us