CONSTRUCTION INSURANCE
TREVOR MCCLINTOCK, EXECUTIVE DIRECTOR AT ABL GROUP REFLECTS ON HOW THE CONSTRUCTION INSURANCE MARKET HAS FARED OVER THE PAST YEAR AND HOW IT’S SHAPING UP FOR THE MONTHS AHEAD… NI CONSTRUCTION INSURANCE MARKET REMAINS CAUTIOUS BUT STRONG
T he construction industry has been through a tumultuous few years. Covid-19, Brexit and most recently the Ukraine war have caused disruptions with project delays, supply chain issues, price inflation and the availability of labour. Despite these challenges the construction insurance market has fared reasonably well. There have been no recent withdrawals from the market in terms of insurers willing to write project and annual policies. Contractors All Risks (CAR) and Liability rates have only increased marginally in 2022, after more abrupt increases in preceding years, with excesses being little altered. Insurers have an increased focus on underwriting profitability, a result of several high-profile and costly fires in the last five years. Insurers are also limiting their exposure
by introducing a range of restrictions and exclusions– for example cyber and heat conditions. The general cost of labour and materials is increasing meaning the cost of claims has increased, which insurers need to fund by rate increases. In general, however, insurers are keen to support client relationships as existing policies expire and they are faced with higher premiums. The Professional Indemnity Insurance (PI) market for construction has been very challenging over the last few years, but the resulting premium increases have refreshed the appetite of long-standing existing insurers, as well as enticing new entrants into the market. Looking forward, the market is showing signs of vigilance towards modern methods of construction (MMC), particularly as regards offsite
Trevor McClintock, Executive Director at ABL Group.
prefabrication, which insurers are cautious about when it comes to underwriting exposure.
T: +44 (0)28 9344 6347 E: trevor.mcclintock@ablinsurance.co.uk www.ablinsurance.co.uk
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