Contracting firms are facing rising premium and worsening terms & conditions at renewal of their professional indemnity (PI) insurance policies. As a result, contractors are increasingly left with reduced protection when compared to prior years.
An increase in frequency and severity of weather events has triggered a heightened awareness and information demand to better understand climate related risks, particularly for assets with a long lifespan like real estate. More refined modelling techniques are helping investors to better assess the risk exposure of properties.
The disruption caused by the Covid-19 pandemic has accelerated digitisation in the real estate sector while exposing weak spots in portfolios that need to be addressed to make the sector more resilient ahead of potential future crises.
A new Building Safety Bill in the UK turns the recommendations from Dame Judith Hackitt thorough independent review of building regulations and fire safety into legislation. It will be formally introduced in the House of Commons in 2021, marking four years since the tragic fire at Grenfell Tower that claimed 72 lives.
As COVID-19 boosts demand for online deliveries, the logistics sector is expanding its warehousing capacity and is set to implement multi-level properties in urban areas, following the lead of the likes of Singapore, Hong Kong and Taiwan.
Green roofs and walls have many benefits although they can potentially increase the risk of fire and water ingress for buildings. Insurers do ask additional questions when developments include such features, however simple precautions and an adequate risk assessment can avoid any potential issues.
Construction projects rely deeply on the quality of the work delivered by contractors and subcontractors, whose insolvencies can severely impact a development and the insurance policies in place. Insurers are scrutinising construction projects more carefully also because the risk of insolvencies is on the rise.
When COVID-19 hit, both insurers and the insured had to grapple with policy claims and whether a product responded to the crisis. It’s been a steep learning curve and it’s time to look at how some typical construction insurance policies have responded and how the insurance market may evolve post pandemic. This assessment is based on Lockton Singapore's experience but reflects developments happening in the sector globally.