The construction sector worldwide has been transformed over the past two years. In the midst of a global economic downturn, construction projects are more than likely to be in the firing line for postponement or cancellation. While there have been some more encouraging signs of increased activity in recent months, the sector is likely to take some time to get back to pre-crisis productivity.
With insurance capacity currently plentiful and construction projects thin on the ground, the market is extremely competitive right now, particularly in regional hubs such as the Middle East and Asia.
Amidst these difficult economic conditions, Lockton has enjoyed success building market share based on the strength of our commitment to service, particularly on schemes that are outside the scope of a contractor’s typical annual insurance programme.
We have been working closely with risk managers and international developers and construction firms on a range of projects around the world. This is to ensure they have adequate cover for the relevant risks, they fully understand the cover they have in place and that there is financially sound insurer security behind the insurance cover purchased. In addition, it is important that the relevant carriers are properly licensed to write the business in question and that local taxes are filed correctly, allied with full compliance with all local legislation.
Lockton REAC (Real Estate and Construction) in the U.K. continues to prove itself a highly client-focused and successful team. We are building on the firm foundations to expand our international construction business. We are currently working directly with clients and Lockton Associates worldwide on major construction projects, including placing North American construction risks into the London market, offering a profound depth of professional expertise and entrepreneurialism.
REAC have also been focused on a range of construction projects in the Middle East, North Africa, and Asia. We are working closely with Lockton’s international power and energy team on oil and gas construction opportunities. This is a very exciting time for us in the international construction sector, which can only become more so, especially when levels of economic activity around the world gradually begin to recover.