Gallagher has recently released a white paper analysing the increasing incidence of long-tail weather events and its implications for the construction sector.
On the back of substantial insured losses due to extreme weather events in 2017, the paper, entitled Weather forecast: predictably unpredictable, highlights that the probability of extreme weather occurring has shifted risk exposures and unpacks what this means for the construction industry.
“Construction businesses should look to review their existing insurance cover before they are affected by an extreme weather event,” said Roger Irvine, Gallagher’s Head of Construction – Australia & Asia. “Ignoring weather warnings when it comes to obtaining insurance cover could expose local construction businesses to catastrophic losses.”
In examining the projected impacts of these factors, the white paper acknowledges the commercial considerations involved and focuses on the need for the construction industry to adapt its approach to obtaining insurance cover, examining recommended changes to the regulatory framework, as well as the likely flow-on effects ‒ to obtaining project finance and formulating contracts, for example.
Building resilience through risk mitigation and planning emerges as a key message, and the white paper outlines some starting points for construction companies to use in structuring a proactive approach to developing new protocols and adopting specific project-based responses to their insurance needs. The full version Gallagher’s Weather forecast: predictably unpredictable white paper can be accessed here.