Challenging the construction market for innovative solutions

08 August 2017

Market conditions continue to provide a highly competitive solution for large, complex and/or capacity driven risks, with continued pricing reductions being seen although the level of reductions are seen to be reducing in percentage.

Facilities and managing general agent (MGA) arrangements appear to be a key focus for traditional London construction capacity providers in an attempt to maintain margins, market share and premium income.

Loss frequency remains at relatively low levels. Many big projects are looking for softer enhancements to cover, including innovative claims solutions and risk management.

Clients and brokers continue to challenge standard coverage parameters where flexibility from markets continues.

Impact of Brexit on construction

Economic, financial and potential Brexit influences continue to be more likely influences to drive market conditions.

The construction market is often required to embrace enhanced technologies and we are starting to see our sector being tested with the evolution within industry of the use of robotics.

There is a greater use of drones on construction sites and the market has adapted and developed some innovative covers for the risks they pose, especially through the London market.

The impact of the amendment to the Ogden rate will almost certainly impact on premiums, but traction has been slow.

Tips for buyers

Shop around more. Look at the options available. Clients should challenge the market to come up with innovations.

For further information, please contact Alistair Urquhart, Global Construction Placement Leader on +44 (0)20 7558 3323 or email alistair_urquhart@jltgroup.com