Modern methods of construction could build premiums for independent schools – Ecclesiastical

Charity-backed insurer Ecclesiastical has urged brokers to advise their educational clients about building risks ahead of undertaking new construction projects that adopt modern methods of construction (MMC).

MMC refers to new on and off site construction techniques that are designed to be more efficient compared to traditional building methods. It includes, for example, the use of materials such as mass timber, low carbon concrete and recycled steel.

Ecclesiastical surveyed 250 UK independent school leaders between 8 and 14 February 2024 – it found that 27% of respondents plan to invest in buildings that utilise MMC in the next one to two years, while 26% intend to invest in solar photovoltaic technology and battery storage. A further quarter (26%) of respondents want to invest in buildings constructed from sustainable materials.

However, Ecclesiastical warned that while some materials are more sustainable than others, they can also be more combustible, potentially increasing the school’s risk profile.

Laura Carter, customer segment director at Ecclesiastical, said: “Our research has found [that] four in five independent schools are constructing or planning to construct new buildings and many are making investments in sustainable technologies.

“Improving the energy efficiency and sustainability of school buildings is hugely important and can present risks and challenges, particularly around combustibility, which need to be carefully managed.”

Collaborative conversations

The insurer explained that schools’ material choices might result in a short-term cost saving – however, this decision could also impact the cost of insuring the building for its entire lifespan.

It added that “it is vital schools speak to their insurer at the earliest possible stage in the planning process”.

Ecclesiastical’s figures show that 19% of independent schools are currently constructing new buildings, while 47% plan to erect new buildings over the next five years. Around 15% have ringfenced new building work in more than five years’ time.

Carter continued: “Brokers play an important role in helping independent schools understand the risks they are facing and in ensuring they have the right cover in place.

“It is vital that when clients are considering a new school building or sustainability project, they consult all interested parties, including their insurers, at the earliest stage.”