The Contract Works insurance market is one of the few areas of the construction industry showing some signs of moderation in premium increases, with sustained upward pressure in the sector continuing.
Some major policies are facing significant premium hikes, particularly Primary Construction Liability and Design & Construct Professional Indemnity.
The hard market is exacerbated by insurers exiting the Australian sector altogether. Those who remain are becoming ever more selective in offering capacity, and moving away from underperforming sectors, occupations and poor performing clients. For the capacity that exists, there are premium and deductible increases and greater insurer scrutiny on policy terms and conditions.
Renewable energy, high rise residential and waste to energy are particularly challenging areas with many insurers not willing to provide cover, leaving open the possibility of businesses or projects being uninsured, or the cost of the cover being uneconomical.
Our insurance market update, which you can download below, confirms insurers are still scrutinising prior loss histories and notifications, with non-conforming cladding and structural defects being a focus.
It remains crucial for clients to differentiate their risks to insurers with comprehensive and quality information on their businesses and processes.
| Title | File Type | File Size |
|---|---|---|
| Australian Construction Market Update | .1 MB |
Iain leads our Australasian Construction team servicing all facets of the industry, managing global insurance programs for large international contractors, principals and financiers.
