Our Head of Construction, Chris Thomas, wrote an article for Insurance Day on the importance of insurance to the recovery of the Construction sector. Some of the main points are below and you can read the full article here.
“The only thing we have to fear is fear itself… which paralyses needed efforts to convert retreat into advance.”
These were the words of President Franklin D Roosevelt at his inaugural address in 1933 when the world was gripped by the Great Depression. Today, as the world starts to emerge from the Covid-19 pandemic many commentators are comparing the current economic situation with the Great Depression. Back then, Roosevelt underpinned the recovery with a massive construction programme. Today, the construction industry could again play a key role in kick-starting the world economy.
How can the Insurance Industry support construction?
The insurance industry is pivotal in what happens next. Sustainable and fit-for-purpose insurance solutions will enable construction projects to quite literally get off the ground. It is up to us step up and meet the challenge.
MGAs are nimble and this agility allows us to adapt and develop products and solutions to meet evolving needs. As an example, we have seen and reacted to the desire for a complete property, liability and CAR product. However, we also need to be ready for emerging risks. Construction exposures are very different to those of the 1930s. A major industry survey found that 84% of respondents were using onsite project management software, while 63% were using drone technology. This increase in automation, robotics, and the knock-on cyber exposures will only increase. So, things like cyber insurance are no longer an add-on, but critical to protecting our clients. The broader message is that our products need to keep pace with and be integrated within what we offer the construction industry.
To finish with Roosevelt, he also said that; “there are many ways of going forward, but only one way of standing still.” As we emerge into whatever the new normal is, our industry needs to be brave and to move forward. Standing still is not an option.