The construction sector has significant potential for reducing its environmental impact as pressure from investors, regulators, governments as well as insurers is on the rise.
As the construction sector speeds up automation and digitisation of processes, contractors are increasingly required to show strong cyber hygiene protocols as the industry and more importantly, the customers fear the financial and reputational fallout from a cyber-incident.
The UK construction insurance market was already showing signs of hardening prior to Covid-19 – but now the industry faces even more challenges.
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.