In the ever-evolving landscape of construction and property management, Building Information Modelling (BIM) stands out as a transformative force. Its latest advancements are not only revolutionising project workflows but also offering invaluable insights for insurers to better understand risks associated with civil infrastructure and large-scale properties
While stakeholders are well aware of BIM’s transformative capabilities, the question remains: are clients, brokers and insurance companies fully harnessing the wealth of information available to drive down premiums on large complex cases?
Maximising information for premium reductions
As technology evolves, it offers an unprecedented level of detail and insight into construction projects. Yet are clients and insurance companies truly leveraging this information to its fullest extent?
With access to comprehensive data on project scope, site conditions and potential risks, there’s immense potential to optimise risk management strategies and negotiate more favourable insurance terms.
However, realising these benefits requires proactive collaboration and a willingness to explore innovative approaches to risk assessment and mitigation.
Real-time data sharing and analysis
Cloud-based BIM platforms facilitate real-time collaboration and data sharing among project teams, regardless of their location.
This enables stakeholders to streamline project management, track progress and identify potential risks as they emerge.
By proactively sharing project data and analysis with insurers, stakeholders can collaborate more effectively to anticipate and mitigate risks. Insurers, armed with comprehensive insights into project performance and key metrics, can provide tailored risk management advice and anticipate insurance needs more effectively, ultimately fostering a proactive approach to risk mitigation and enhancing project outcomes.
Automated risk assessment and optimisation
Advancements in BIM software include AI-driven tools for automated risk assessment and design optimisation.
Stakeholders can leverage these tools to identify potential hazards, mitigate risks and optimise project outcomes.
Insurers can use this information to tailor insurance solutions, offer proactive risk management advice, and optimise coverage terms based on project-specific insights.
Improved collaboration and visualisation
BIM’s integration with virtual reality (VR) and augmented reality (AR) technologies enables stakeholders to visualise projects in immersive environments. This means enhanced clarity in understanding project complexities and potential hazards.
Insurers can leverage these visualisations to gain a deeper understanding of project scope, site conditions and potential risks.
Challenges in professional indemnity insurance and cybersecurity
Insurers are facing challenges in the Professional Indemnity (PI) market, particularly as traditional trades evolve and intersect with technology. While once typical risks were easily insured, the convergence of industries means finding the right cover is increasingly complex.
Additionally, cybersecurity remains a critical concern for businesses in the construction and property management industries. With the rise of cyber threats and the digitalisation of construction processes, there has been a growing awareness of the need for cyber insurance within the construction industry.
Many are slow to react to the need for insurance coverage for the data they hold. This reluctance can delay decisions or result in a crippling setback when their BIM system is compromised by a malicious cyberattack, resulting in significant disruptions, financial losses, reputation damage and legal consequences for the company.
As cyber threats continue to evolve, businesses must prioritise securing adequate insurance coverage to safeguard their operations and mitigate financial risks.
Digital twins for remote building assessment
While insurers typically conduct site visits or rely on third-party surveyors for property
assessments, the use of digital twins within BIM could prove very useful in enhancing their capabilities. These virtual models allow insurers to gain insights into a building’s characteristics and risks without leaving their offices.
For instance, insurers can utilise digital twins to thoroughly review buildings, including common areas of concern like flat roofs, by analysing the building’s design, materials and condition.
While not yet widely adopted, the potential of digital twins in remote building assessment offers insurers an efficient and effective means of evaluating properties, streamlining the underwriting process and ensuring accurate risk assessment.
A vital tool for properties affected by fire safety challenges
In the aftermath of the Grenfell Tower tragedy and heightened concerns surrounding fire safety in buildings, insurers are placing greater emphasis on comprehensive data and risk assessment when underwriting properties.
Premiums have surged for properties affected by combustible cladding and other high-risk factors identified post-Grenfell. Insurers now require detailed information regarding fire safety measures, building materials and risk mitigation strategies.
However, obtaining this crucial data has proven challenging, with gaps in information often leading to significant issues during the underwriting process.
Here, BIM emerges as a potential solution when utilised effectively and can serve as a centralised repository for comprehensive project data, including fire safety specifications, material types and risk assessments.
By leveraging BIM technology and ensuring accurate data transfer throughout the project lifecycle, stakeholders can enhance transparency, streamline risk assessment processes and provide insurers with the information needed to accurately underwrite properties and mitigate fire safety risks effectively.
Thus, recognising BIM’s potential as a solution is crucial in addressing the challenges faced in ensuring properties affected by fire safety issues and securing adequate insurance coverage.
Sharing information for optimal insurance terms
To unlock the full potential of BIM updates in risk understanding and insurability, collaboration and information sharing are essential. Stakeholders must work together to exchange data, insights and best practices. By sharing information proactively, stakeholders can enhance risk assessment accuracy, optimise insurance coverage and secure the best terms available.
The best approach is to partner with an insurance broker and company that can effectively engage with the information being provided, translating it into actionable insights and ensuring that the insurance coverage aligns with the specific needs and risks of the project.
In conclusion, the latest updates in the BIM industry offer significant opportunities for stakeholders to gain a deeper understanding of project risks, enhance insurability and drive better outcomes. By leveraging BIM technologies and addressing emerging challenges such as those in the property market, PI insurance and cybersecurity, stakeholders can foster a proactive approach to risk management and ultimately improve project outcomes.
Scott Williams
Joint Managing Director
Clarke Williams Ltd
Tel: +44 01632 252 898
swilliams@clarkewilliams.co.uk
www.clarkewilliams.co.uk
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*Please note: This is a commercial profile.
