Cody Macpherson (pictured right), at KASE Insurance, faces the evolving landscape of construction and real estate with a clear-eyed approach focused on proactive risk management and deep client relationships.
For Macpherson, the key to effective commercial insurance lies in what he calls "getting to know your clients... right from how they operate [and] where they’ve been, but most importantly, where they’re going." This long-term perspective allows him to identify potential risks, plan protections for both present and future projects, and ensure that no surprises arise as client operations evolve.
Speaking to IB, Macpherson emphasized the importance of a strategy that doesn’t just address current risks but also looks ahead, anticipating regulatory changes, escalating construction costs, and shifts in environmental, social, and governance (ESG) standards.
"Landscapes are always going to change," he said, but staying informed keeps KASE prepared to adapt to new developments without disruption. He’s especially attuned to the lengthy timelines involved in construction, noting that "a one-year project can be delayed… up to five years," especially during unpredictable events like the pandemic. This demands a dual approach—protecting existing properties while planning ahead for projects in earlier stages of development.
"We need to identify what the current risks are now, but then we also have to look at where we’re going to be in five or 10 years?" he said.
For Macpherson, protecting developers’ interests is complex, involving numerous parties with distinct roles – from capital investors to construction companies, and the architects who bring projects to life. Directors and officers (D&O) insurance, for instance, becomes critical for developers, shielding them from legal disputes that can arise if shareholders disagree or projects go awry.
“There’s always an opportunity for a shareholder disagreement to come about,” he said, emphasizing how D&O insurance provides essential coverage for project leaders should any conflicts end up in court. For him, insurance protection extends beyond just physical assets; it must cover the nuanced, multi-faceted nature of construction investments.
And, in the dynamic environment of real estate and construction, material costs and supply chain stability have become pressing concerns, especially since the pandemic. The complexities are compounded by new regulations and political shifts. Macpherson, however, sees these challenges as part of a broader need for partnership and active consulting with clients to navigate evolving risks.
"It absolutely does come back to where we started," he said. "We get involved in the process from day one." His proactive approach involves staying current on industry regulations and market trends, engaging with governmental and industry bodies, and attending events such as the IBAO conference.
“Specialization is really important," he said, recognizing that commercial brokers must stay focused on the unique landscapes their clients operate in.
In an industry becoming increasingly complex, with risks multiplying from regulatory shifts to emerging technologies like AI, Macpherson believes brokers are only becoming more essential.
“We’re moving away from… ‘I’ll see you next year,’” he told IB. Instead, his model is consultative and ongoing, ensuring clients are continually informed of regulatory changes and risk mitigation options. Preparing for the adoption of innovations such as AI and ESG standards is part of his forward-thinking strategy, acknowledging that some businesses may adapt faster than others.
“Not everyone’s going to be able to adapt… at the same speed,” he said.
