Construction challenges press insurers: Allianz

Insurers must be prepared to deal with construction industry challenges associated with COVID-19’s impact and a renewed drive to cut already-tight margins, says a report issued Tuesday by Allianz Global Corporate & Specialty SE.  

“Insurers need to navigate the impact of these developments,” said Ronan Gallagher, global practice group leader for industry at AGCS, in the report Managing the New Age of Construction Risk, 10 Trends to Watch as the Sector Builds Back Better.

Other challenges facing the construction industry, according to the report, include: those associated with infrastructure projects; a transition to more sustainability; clean energy; hydrogen as a new energy sector; modular construction; pandemic-created increased claims costs; extreme weather risks; water damage; and digitalization, which creates cyber exposures.