Public-private partnerships (PPP), which were originally pioneered by the UK and Australian governments in the 1990’s, are now widely used in many countries globally. Typically, they are a method whereby private companies are contracted to build and manage public sector projects on a long-term basis using private funding.
This use of private finance, as well as the need for public and private entities to share risk over a long period, has generated a number of risk issues associated with this type of project procurement.
JLT's global construction practice leads the market in PPP advice and insurance placement. We leverage our scale and expertise to improve the scope of insurance programs and drive down cost. JLT first launched a dedicated PPP project team in 1995, followed by the establishment of a team devoted purely to handling portfolios of operational PPP assets in 2001.
In 2008, we recognized the importance of providing expert advice to project funders by creating a separate lenders’ due diligence advisory team to work exclusively with financiers. Our work on PPP over the past 20 years has lead positioned us as a market leader in this critical area of procurement, both in terms of quantity and complexity of contracts. In recent years, JLT has designed an insurance program for the largest and most complicated PPP project in North America.
WHAT WE DO
JLT provides insurance broking, risk management, and claims consulting services to large and international companies involved in PPP projects globally.
Our team of specialists is experienced in of each of the main sectors, with our experience split:
- 42% Education
- 36% Healthcare
- 17% Roads and infrastructure
- 5% Public facilities
Our dedicated PPP offering incorporates three key stages.
We utilize our scale and expertise to improve the scope of insurance programs and reduce costs on PPP projects for our clients. Our team has a complete knowledge of project-related finance issues, and works with all parties to achieve optimum risk transfer for the entire concession period.
We leverage our deep understanding of PPP projects, whose unique risks often require unique solutions. These include:
Tailored insurance solutions to meet the individual contract, financing and scope of the project
Contractual risk management and allocation advice for each phase of the concession period
Seamless whole project solutions and coverage certainty offering a single, long-term seamless risk solution for the construction and initial operational phases (six years+)
Extensive buying capacity with the market enables us to arrange longer term and high limit coverage where necessary
Cash flow analysis to develop innovative approaches with carriers that satisfy the client’s financial needs and improving cash flows and/or liquidity
Revenue protection solutions for complex phased revenue risks over both construction and operational exposures
Benchmarking to determine what is possible in the market, what has been done before, and provide solutions based on the strength and depth of our construction team and the volume of projects we work on each year
The ‘portfolio effect’ of JLT being the pioneer broker and market leader, of portfolio solutions for operational PPP projects helps our clients achieve economies of scale to secure the best deal with the broadest scope of cover.