CategoryConstruction

Chapter 1: Understanding the hardening market

With prices for CAR and EAR insurance rising for the first time in many years, Patrice Nigon asks: ‘How did we get here?’ The soft phase of the cycle within engineering and construction was so prolonged, a hard insurance market is a situation that many in the industry have little to no prior experience in. In discussions related to pricing for typhoon-exposed business, there is...

Chapter 2: Construction claims – the short tale of a long tail

Construction insurance claims have never been the easiest of claims to resolve for a host of reasons, and they generally have a longer tail than other claims. But why? asks Peter Newall How are construction claims any different from regular property claims? They are surely just property claims for assets being built? Technically yes, but they are somewhat different in that a Contractors All Risks...

Chapter 3: Interview: The broker perspective

Rupert Roberts offers an intermediary’s perspective on some of the current challenges facing the construction and engineering insurance industry and explains why there can be a sting in the tail. There are a number of long-tail exposures involved in construction projects, from potential professional indemnity type exposures around design or construction of the structure, materials selection...

Chapter 4: Survey: Seeding the infrastructure pipeline

Investment in infrastructure development is set to be one of the main drivers of sustainable growth in emerging markets as the COVID-crisis subsides, according to sigma and research carried out by the Journal According to half of those polled in the survey, conducted by The Journal in November 2020, it could take one to two years for the engineering and construction sector to fully recover from...

Chapter 5: Over-optimism in CAR and EAR markets

Construction all-risk insurance (CAR) and engineering all-risk (EAR) insurance premiums have not reflected the underlying risk of projects in recent years, with overcapacity and strong competition in the underwriting market putting downward pressure on rates. Despite this, losses in the CAR and EAR fields are becoming more severe. Risk management in CAR and EAR continue to improve and evolve, but...

Chapter 6: New risks from renewables

Understanding of the risks associated with the engineering and construction of new technologies such as renewable energy are still in their infancy, particularly where natural catastrophes are concerned With the introduction of new tools and technologies in renewable energy, the construction and engineering industry faces major changes. Solar and wind sites present fresh challenges for project...

Chapter 7: COVID, talent and cross-border complications

Securing the right level of construction and engineering skills and expertise has become more challenging in an age of travel restrictions and quarantine. Japanese contractors have broken ground on Manila’s first ever subway, with an optimistic completion deadline of 2022. The $6.9 billion project is the responsibility of a consortium of Japanese firms, consisting of Shimizu Corporation...

Chapter 8: Natural catastrophes: Extreme and unpredictable

Climate change is resulting in increasingly extreme and unpredictable weather. For engineering contractors and developers, this means the risk is becoming more difficult to manage. Flash floods in the desert, hailstones the size of tennis balls and new trends in how hurricanes and typhoons track and build momentum. These are just some of the issues that contractors must deal with when they...

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Welcome to The Journal, StrategicRISK ’s series of interactive online books for professionals in the corporate risk management and insurance sector. The Journal is published in partnership with Swiss Re Corporate Solutions. For more information about StrategicRISK click here.

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