HSB research finds insurance brokers are unaware of new developments in construction industry
Recent research conducted by HSB Engineering Insurance found that 76% of insurance brokers place construction risk, and the sector makes up a significant part of their business; accounting for an average of 16% up to 21% of their portfolios. However, almost three quarters (71%) of brokers stated that they are not aware of new technological developments within the construction industry.
The research also found that around 30% of brokers believe the greatest challenge they face over the next 12 months is a ‘hardening market’ and the resultant consequences, such as a ‘reduction in the number of insurers that accept construction risk’ and product availability. In addition, whilst most brokers (72%) went to general insurers for information, awareness on the topic of construction technology development and its implications on insurance risks was still low.
John Nicholls, Construction Product Leader at HSB, commented: "It's important insurance brokers are aware of how the construction sector is evolving and what role technology plays in today’s building projects. It’s clear that in order to provide the most appropriate insurance, brokers and insurers must understand how current and emerging developments are shaping construction industry operations."
One of the most potentially-disruptive emerging technological developments is the 3D printing of buildings; an area which received a low awareness rating within the broker research. Whilst 3D-printed building technology is very much in its infancy, this development could significantly change how construction projects will need to be insured in the future.
Stephen Worrall, Managing Director of HSB, says: "The findings of our research were truly eye-opening. What is clear is that the pace of the technological developments in construction and plant is accelerating, and it’s important for brokers to keep up to date with these developments. A perceived hardening market and a reduction in the number of insurers accepting construction risk is also at the forefront of brokers’ minds. At HSB, we pride ourselves in being leaders in knowledge of construction and plant risk, and can use our expertise and experience of the sector to provide brokers with the information they need in order to be able to remain are the forefront of an ever-changing construction landscape."
The research was conducted amongst 250 brokers between 1 and 30 March 2019, with the aim being to gain a better understanding of their perceptions of the construction and plant sector.