We came across this Construction Insurance update produced by Willis Towers Watson. We thought it was really interesting and gets to some of the key issues, so thought it was worth sharing.
As they say in their introduction, whilst the US construction property and casualty market continues exhibiting rate stability, it remains soft, with a level of cautious underwriting starting to set in, mainly driven by the on-going deterioration of the automobile and liability market.
Repeating last year’s statements, whilst underwriters are trained to analyse safety procedures and loss history when checking accounts, contractors not managing safety efficiently will find a more difficult market than the industry average. Moreover, as pricing remains soft, markets are seeking to decrease exposure by limiting endorsements and using policy exclusions.
With the US insurance market place still expanding, an increasing amount of historically foreign-based underwriting companies are setting up offices in the country. As such, it is likely that the expansion will continue, with the warning that certain lines of business might not be viable.
Read the full Willis Towers Watson post here