Andy Kane, head of construction engineering at QBE’s European Operations, has observed the industry’s challenges in the past few years.
In a conversation with Insurance Business, he assessed the UK’s construction insurance market, saying it had “started to level off in some areas, and in some lines of business even soften” from the situation in 2019.
Kane noted an increased participation of new companies and some carriers’ greater appetite for growth. Industry developments also varied by geography, he said, citing the examples of Spain, where the growth remains “below 2019 levels of activity” and the UK, which is experiencing “a significant downturn” in house building.
Despite supply chain issues that affected the cost of components and the time to replace damaged ones, there was “an increase in project activity related to the transition to net zero, such as renewable power projects, large automotive and battery manufacturing plants, [which] are really helping to balance the overall industry numbers” across Europe and the US, he said in this interview.
These conditions prompted industries to respond to fast changes, including:
The role of QBE and other underwriters was to support the industry’s transition “in a considerate and prudent way […] by staying abreast of the technology developments, working with brokers and customers, so that we can offer risk transfer solutions that work for both sides,” said Kane.
The company, which has been recognised as one of the winners of Insurance Business’s Brokers on Construction awards in 2023, is also addressing concerns related to digitalisation and cyber risk. Kane said these issues were being managed by having regular face-to-face dialogues with clients and developing their own risk solutions. Specifically, QBE’s UK and CIR wordings include a section for a high-technology plan that provides customers the enhanced coverage they need.
Modern construction methods, potential losses associated with various construction types, and the impact of climate change on projects are other risks that QBE and its customers are adapting to.
“QBE has been working on assessing personal safety health monitoring systems on-site, water management systems leak detection, site and project weather modelling and program risk analysis using AI,” he said.
For brokers, staying informed about the market is necessary to succeed in the construction space in the coming year. Kane said associations like the IMIA, LEG and IRMI could provide brokers with reliable technical information, which would be useful for underwriters to mitigate risk at the early project design stage.
