Re-laying the foundations
Affectionately referred to by some as ‘a bit spit and sawdust’ when I joined the industry in 2000, Construction wasn’t necessarily the first line of business, I thought of as leading on digitalisation, data and technology. However, Architecture, Engineering and Construction (ACE) professionals are switching hard hats for algorithms and transforming what is possible for Construction underwriters.
In 2025, Construction and Infrastructure are globally significant industries with at least a decade’s experience of so-called ‘Construction 4.0’ – including project management software and predictive analytics; Building Information Modelling (BIM); and wireless 2
monitoring (IoT) applications. They’re ready for a next iteration of ‘Construction technologies’ (ConTech) So the question is; are Insurers and MGAs?
Driving innovation from within: Building the future
What is ConTech? Here’s a working definition: Technologies used to innovate the way structures are planned, designed, and built, as well as the manufacture and installation of their components. But this definition probably doesn’t adequately reflect how existing and new technologies are being applied by ACE firms and professionals in 2025.
Tangible impact and relevance of some ‘X-Tech’ labels are disputed and often spawn hype of being the ‘Next Big Thing’. The early days of InsurTech is a great example of this. For ACE professionals, however, the drive for Data and Tech innovation doesn’t appear to be imposed from the outside but is coming from within industry itself. We see ConTech as a consistent, everyday feature of professional discussions and communities, as well as ever-present in the Construction trade press. Concirrus research showed us that the range of Construction Insurance buyers are ‘tooling up’ with Data and Tech in response to a range of factors, not least regulation around supply chain, sustainability (including Green Construction) and Health and Safety. According to project data solution specialists PlanRadar, 97 % of global construction professionals expect to see increased investment in digitalisation by 2026, with the priority investments in:
- Construction project management software
- Digital solutions for support environmental commitments, greater energy efficiency and renewable energy
- Building Information Modelling (BIM)
Add to this a growing roster of ACE-focused tech firms who understand the industry sufficiently to create good solutions for it, including start-ups (many incubated and funded by construction firms themselves,) and this is clearly an energetic, dynamic and incredibly interesting landscape.
A Blueprint for ConTech
ACE communities and experts see an accelerating pace of digitalisation for Construction. Here’s a brief snapshot of the range of ConTech-in-action we anticipate in the coming year:
- Advanced fleet management technologies becoming the norm for contractors
- Increasing use of drones for more effective on-site progress tracking and hazard identification
- On-site Reality Capture (RC), Mixed Reality (MR), Augmented Reality (AR) and Virtual Reality (VR) technologies becoming commonplace
- Greater use of Insurtech solutions for on-site worker safety and efficiency e.g. wearable technologies like smart helmets, vests, and sensors
- Growth of robotics – more pilots as well as full-on implementation
- Design digital (the norm already) developing into design automation
- New schedule prediction and scenario simulation solutions coming to market
- Increasing focus on integrating supply chain and procurement into overall workflows across the project lifecycle, e.g. from planning to fabrication of components, sourcing components, decommissioning and waste disposal
Under construction: The role of Underwriting
Construction Insurance will need to evolve too, specialist brokers Gallaghers and Griffiths & Armour independently report that underwriters are targeting this business line for growth in 2025. We’re hearing about competition for this business, with renewed interest from internationally based insurers and reinsurers, returning former market players, Lloyd’s syndicates and MGAs.
This doesn’t alter the fact that there are some very real underwriting challenges for Construction Insurance including:
- Historical data gaps, ranging from unmodeled secondary perils to persistently complex areas such as Construction PI and Surety.
- Changing construction methods, products, regulation and standards that require fresh models and new data, ranging from PFAS to Modular Methods of Construction (MMC)
- Increasing ubiquity of ‘mega projects’ (projects with a value of $1bn or more) and high-risk construction e.g. refurbishment of aging infrastructure
However Insurance isn’t simply asking Construction clients, and their brokers and MGAs, to fill these gaps. Insurers are actively creating partnerships with ConTechs to help firms improve risk profiles. We’ve been told that significant improvements in insurer mobile apps have enabled better claims reporting processes and employee training which all positively impact ratings. Some insurers proactively offer preferential rates and deductibles for implementing tech e.g. improving fleet risk through vehicle tracking solutions. Sometimes they pick up the tab for the client too!
Risk Information Management Systems (RIMS) arguably are ConTech’s ‘low hanging fruit.’ RIMS have evolved from primarily supporting the insurer claims infrastructure to now capturing exposure information including the asset class (e.g., bridge, road, tunnel, solar plant), project size and value, and location. The insurer needs the client to collect the data, of course, but the incentive is tangible and powerful. This shared insight can help bridge the underwriter data gap and support the client to glean insights for action at project- and enterprise-level.
Building a different level of client-Insurance collaboration
Our research into today’s Construction and Infrastructure shows firms and asset owners grasping innovations because they must – not just industry-specific innovations such as Advanced Materials or semi-autonomous heavy plant, but core operational Tech and Data tools that help get the job done. Construction’s fast-paced industry change and global demand means getting to grips with underwriting and risk management challenges old and new. This in turn requires more and even better collaboration.
We’ve recently mapped a vibrant partner network including underwriting workbench solutions (like Concirrus); ConTech; lawyers and advisors (including brokers and MGAs); super-specialist data and modelling solutions; and industry networks. And the Construction firm should be in the partnership mix, too.
For me, US-based Suffolk Construction (‘America’s Contractor’) is a stand-out example of the client leading the way: their in-house tool – the Project Dashboard – tracks metrics in real-time for projects nationally, generating insights into safety, scheduling, finances, and other critical operational data they use every day. Suffolk have recently turned this into a version for their clients, called the Owner’s Dashboard.
High-quality, super-relevant data, modelling and inter-operability like this creates potential for a whole new kind of insurance-client collaboration that goes well beyond individual firm or project risk profile improvements, faster submissions or improved Claims management. This creates an opportunity for dynamic, real time risk identification and mitigation, where construction risk can be tracked like a ship or aircraft might be; however, utilising this type of collaboration requires underwriters to be able to ingest such data, in real time. The opportunity is exciting, and we welcome the challenge.
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