Risk Assessment In The Construction And Insurance Industry

Which industry has a turnover of £58 billion per annum, representing 10% of GDP, employs 1.4 million people, but is described in a recent report as under achieving with low profitability and a lack of investment? Coming fast on the heels of the Latham Report, Sir John Egan has reported (Rethinking Construction) on the ills of the construction industry and has called for wide sweeping change in a sector that have generally been perceived to be dogged by inefficiency and failure. Construction risks represent a significant proportion of the business written by insurers and have contributed to some of the largest claims and losses in the past few years. The Jubilee Line extension and the Heathrow Airport Express collapse, are two cases in point. It is clear to see that any improvements to the construction industry will directly benefit insurers through a reduction in claims.