The global construction insurance market continues to experience high levels of competition and capacity, but there has been a notable change in the market since Hurricanes Harvey, Irma and Maria.
Insurers in the construction and wider property insurance markets have increased their focus on aggregate natural catastrophe exposures.
As a result, underwriters are turning their attention to limits and deductibles, and we are already seeing a tightening of policy definitions for named windstorms to remove any ambiguity.
Construction insurers are also looking for more technical information on risks and mitigation, a sign of greater risk selection as we move into 2018 and a willingness to differentiate between risks.
Ahead of reinsurance renewals in January, pricing for construction insurance is already under pressure, although rates for non-catastrophe risks are holding at soft market levels.
However, the full effects of the changes under way will not become clear until the end of the first quarter of 2018.
Many construction insurers are currently negotiating their treaty reinsurance renewals and are expected to seek to pass on any increased cost of reinsurance to their customers next year.
Construction tips for buyers
Active engagement with the market, and the ability to provide relevant information, will be met with a positive response from insurers.
For further information, please contact Alistair Urquhart, Global Construction Placement Leader on +44 (0)20 7558 3323 or email firstname.lastname@example.org