Insurer
XL Catlin's North America construction business has reached US$1 billion in construction insurance premiums as it marks its fifth year of operation.
Despite the economic downturn, commercial construction is on the rise, buoyed by a wealth of 'mega-projects' with values in excess of US$1 billion, the company said.
"At a time when the construction industry was struggling from an economic downturn, XL Catlin made an investment in developing a dedicated construction business focused on providing the effective risk management guidance, services and insurance products to contractors when they needed it most," said Gary Kaplan, XL Catlin's North America Construction leader.
There are three key ingredients to XL Catlin's success in the construction field. "What we're seeing now is a lot more mega-projects, with values exceeding US$1 billion, with many valued at up to $5 billion. These projects are inherently complex and require considerable insurance capacity," Kaplan said.
According to Kaplan, the company also benefits from being able to offer all construction lines with one insurer: “Having one insurer provide all lines of coverage is a critical differentiator. If a claim is incurred, there is no 'gray area' with coverage clarity and certainty,” he said.
And finally, there is a talent shortage: "With a skilled labor and management talent shortage, and the nature of the construction work highly hazardous, it's important that contractors secure the right people, with the right training, to avoid exposure to construction defect claims and injuries,” said Kaplan. Through its ‘Construction Risks Engineering’ team, XL Catlin offers loss control assistance which among other services includes safety compliance training in both English and Spanish.
