Impact of Insurance Rates on the Construction Industry
During 2019 the construction insurance market was showing signs of quite a significant hardening in terms of premium rate increases and tougher underwriting guidelines. Particularly for projects with water damage exposures in the wake of some large losses that hit insurers in 2018 and 2019.
In the first quarter of 2020, the market continued to harden and contractors started requesting “Risk Management Engagement” & “Broader Coverage”.
It is too soon to determine the full impact of COVID-19 on the property & casualty insurance industry. Markets are facing challenges that could continue through 2021.