US Construction Risks

Twelve new insurers and existing carriers improving their game - result: competitive market competing across the board with the local US insurers, no matter the size, type or location of a construction project and especially competitive for heavier type risks.

Ask yourself two questions:

1. are you fully aware of the opportunities this creates?
2. does your London market broking partner have the construction knowledge, strength in depth or leverage to make the difference?

We all know how the London market reputation is built on its flexibility:

- Any type of project - from low risk construction of condominiums through to the heaviest construction risks such as bridges and tunnels;

- Risks in any State - cat exposed or otherwise;

- Long term insurance at fixed cost without any break clauses - possibly 8-10 years, providing the financial certainty needed for larger infrastructure and P3 projects;

- Policy wording adapted for the project - specifically to meet the risk needs of a project and often broader than local market alternatives e.g. no water ingress exclusions or limitations.

- Single policy - covering construction and existing asset risks, which can be important, for example, with the development of existing infrastructure such as roads

But it is the specialist construction broker that has the unique market insight, expertise, special facilities and relationships that make the difference.  There skill and experience can achieve the best result for the insured and enable the US broker to maximise their earning potential.

But just how do you choose the perfect partner?  Here's my seven-point checklist:

1. A dedicated construction team, with proven US experience
2. Expertise across all disciplines - strength in depth to add real value and give your business the attention it requires
3. The amount of premium placed - a measure of market leverage
4. Spread of business - a measure of relationship quality
5. Existence of unique facilities and record of developing facilities for US brokers (e.g. excess of loss) - the value added
6. Global experience - share best practice
7. Technical claims support - delivering the promise

Have a comment you want to make or a burning question about the London market?  Then post an entry on this site or email me direct. 

John is Head of Placement with a primary role of bringing co-ordination and a market focus to the Construction Division. He also ensures the building of long-term strategies in the placing of major projects.