71% of brokers unaware of key developments in construction industry – HSB

Nearly three quarters (71%) of brokers are unaware of new technological developments within the construction industry.

This is according to a research survey by HSB Engineering Insurance of 250 brokers between 1-30 March 2019 with the aim to gain a better understanding of their perceptions of the construction and plant sector.

It found that 76% of brokers surveyed place construction risk accouting for an average of between 16% and 21% of their portfolios.

3D Printing

According to HSB one of the most potentially disruptive emerging technological developments in the industry is the 3D printing of buildings – which is an area that has received low awareness rating within broker research. This could significantly change the way that construction projects are insured in the future.

Stephen Worrall, managing director of HSB, added: “The findings of our research were truly eye-opening. What is clear is that the pace of the technological developments in construction and plant is accelerating and it’s important for brokers to keep up to date with these developments. A perceived hardening market and a reduction in the number of insurers accepting construction risk is also at the forefront of brokers minds.”

Hardening market

The research found that around 30% of brokers believe the greatest challenge they face over the next year is the hardening market and its consequences such as a reduction in the number of insurers that accept construction risk and product availability.

Most brokers (72%) went to general insurers for information on the topic of construction technology development but its implications on insurance risks were still low.

John Nicholls, construction product leader at HSB said: “It’s important insurance brokers are aware of how the construction sector is evolving and what role technology plays in today’s building projects. It’s clear that in order to provide the most appropriate insurance, brokers and insurers must understand how current and emerging developments are shaping construction industry operations.”