Munich Re Specialty launches Construction Rescue Insurance

Munich Re Specialty – Global Markets, Syndicate today announces the launch of Construction Rescue Insurance, a specialist solution for owners, developers, and contractors engaged in large-scale tunnelling and underground infrastructure projects. The product is a first of its kind for the Lloyd’s market.

The Construction Rescue Insurance product enables funding of the significant and often unforeseen costs of rescue and crisis response following catastrophic underground incidents. The solution aims to meet an increasing need for construction and casualty. The launch follows the success of Munich Re Specialty's Miner Rescue Insurance consortium, extending a similar innovative approach to the global tunnelling and infrastructure sector.

Construction Rescue Insurance is intended to support organisations during the rescue and immediate recovery phase by funding response and recovery operations, the use of specialist equipment and personnel, technical and logistical coordination, and other day-one needs, subject to policy terms, conditions and limits. Designed for major infrastructure projects including rail, road and other underground developments, this policy is designed to assist engineering and construction firms in challenging moments.

Dan Rouse, Group Head of International Casualty, Munich Re Specialty – Global Markets, said: "Following the launch of our Miner Rescue offer, expanding access to large infrastructure tunnelling projects that are subject to very similar exposures was an obvious next step. The ambition for this new offering further supports Munich Re Specialty’s experience providing Contractors’ All Risks and Erection All Risk solutions to some of the largest tunnelling and infrastructure projects in the world, to address risks that we are hearing from customers first hand."

Stephanie Ogden, CEO, Munich Re Specialty – Global Markets, Syndicate said: "Tunnelling is among the most technically demanding disciplines in global infrastructure, and when a collapse occurs, the priority is safety of people. By providing this product, our aim is to support customers with the costs that amass exceptionally quickly and give project owners and contractors the time to ensure their focus can remain on the preservation of human life and welfare."

Ahead of the launch of the Construction Rescue Insurance product, potential client engagement and development testing showed strong appetite and support from large infrastructure and engineering businesses. One such endorser includes Acciona, a multinational construction firm who have designed and built more than 600 km of underground railway, road and rail tunnels*.

Brad Green, Head of Insurance, Acciona Infrastructure, Australia and New Zealand said: "Munich Re's Specialty’s Construction Rescue product fills a genuine gap in the insurance market for tunnelling and construction contractors — providing not just the financial cover to manage a rescue operation, but also the immediate emergency cash flow and expert crisis management support that are critical from day one of an incident. As a construction company operating complex infrastructure projects, we see real value in a product that puts the safety of our people first while also protecting operations, reputation and contractual relationships."

Notes to editors

• The new product will be underwritten with alignment to the Munich Re Climate Ambition.
• Construction Rescue responds to events of tunnel collapse, flooding, power outage, fire, equipment failure, or any unexpected event where contractors or workers are unable to reach the surface, subject to policy terms, conditions and limits.
• *Statistic as quoted on Acciona’s website: https://www.acciona.com/solutions/transport/activity-areas/tunnels