As Ireland’s economy gathers momentum, the construction industry plays a key part in driving that continued growth through delivering infrastructure, housing or commercial capacity and jobs growth. Painful lessons from the past have been learnt by most of the key stakeholders in construction.
However there remains huge uncertainty, particularly in respect of construction related business, as to the correct pricing and cover considerations required to enable insurers to continue to support the PI market in particular.
It is no secret that PI insurance in general has been one of the underperforming business lines across the insurance industry in recent years, and there is a drive throughout the market to make these lines profitable and sustainable.
Well publicised issues around Pyrite, the tragedy at the Grenfell Tower, and a culture of claims which would make our American cousins blush have made the Irish market a unique one. Couple this with high profile company failures, with a hint of more to come, it is understandable that some insurers are cautious and clients frustrated.
We now find ourselves in a place where premiums are on the rise, along with limitations being imposed in cover. Some insurers have withdrawn from underwriting PI insurance, others are considering their options. Certainly, less markets are around, particularly to underwrite business involved in the construction industry.
The effects of all of this are that rates are rising, cover limits are being restricted, exclusions are being imposed and, in some cases, cover refused. Therefore, it is essential to be aware of the situation and act accordingly:
• Give yourself plenty of time before renewal. Arrange a pre-renewal discussion 2 months ahead of renewal with your broker.
• Start collating information-positive risk management details, full details of contracts involving cladding, and all information on previous and current claims.
• Complete the renewal proposal form and send to your broker along with the detailed information collated.
• Your broker will review your renewal presentation and advise if they need any other information before they send it to insurers. Remember, the information you provide is a reflection of your business and the more complete and thorough the better.
It is vital that your broker is experienced in dealing with the current scenarios facing the PI market. Remember your broker is acting as your voice during the renewal process. They have to convince insurers that your business is one they want to be involved with.
The Doyle Mahon PI team are highly experienced, broking construction PI risks for over 10 years, and are extremely capable in dealing with complex risks difficult market conditions.