As we emerge from Q2 2021, the construction insurance market has aligned with many of our predictions from the early part of the year. Rate increases continued for most lines of coverage while coverage remained challenging in several others, but at the same time, we have seen signs of late cycle underwriting behavior in some key lines of cover. While not a softening market per se, rate increases have begun to moderate in many lines with a few notable exceptions (cyber being the highest profile) and we expect that this will continue through the end of 2021.
Evaluate adequacy of insurance changes embedded within bids and contracts
Begin discussions regarding viability very early, as much as a year prior to renewal, as utilization of ART structures may involve a lengthy educational process for internal stakeholders, owners and insurance partners.
Take time to develop new relationships. Off-cycle market meetings with incumbents as well as potential alternative insurers are valuable.
If a project has been delayed for any reason and will require the extension of any insurance placement, begin this process as early as possible. Project extensions have become challenging to obtain and can be quite costly
For more details, please download the full report below.
Willis Towers Watson is an insurance broker, and gives its views on the meaning or interpretation of insurance policy wordings as brokers experienced in the insurance market. Insurers may take a different view on the meaning of policy wordings. Any interpretation or thoughts given are not legal advice, and they should not be interpreted or relied upon as such. Should a legal interpretation of an insurance contract be required, please seek your own advice from a suitably qualified lawyer in the relevant jurisdiction. While all reasonable skill and care has been taken in preparation of this document it should not be construed or relied upon as a substitute for specific advice on your insurance needs. No warranty or liability is accepted by Willis Towers Watson, their shareholders, directors, employees, other affiliated entities for any statement, error or omission.
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Global construction insurance market update | 6.7 MB |
Iris has over 20 years of construction related insurance industry experience and has held various senior positions with major insurance brokers, focused on construction projects in Hong Kong, Macau, China, Singapore, Malaysia, Vietnam, Indonesia and North Mariana Islands. Iris is always seeking innovative risk transfer solutions for infrastructure, superstructure, hospitality, power and petrochemical projects in the region. Her core expertise includes contentious claims handling, lender advisory, risk analysis, insurance broking, and managing self-retention insurance programs and captives. Iris specializes in driving new business, designing project-specific and annual renewable insurance programs for mega-sized infrastructure and building projects from the construction phase to interfacing with the operation phase.