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
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Bill Creedon is the Global Head of Construction for WTW. During his time in the industry, Bill has held a variety of roles ranging from client management to local and global leadership. Over the years, Bill has gained experience with a broad spectrum of heavy civil and building contractors. Bill also works closely with the Graduate Development Program at WTW dedicated to fostering young talent within the company.