TV

[00:00:03] Paul Lucas: 
Hello everyone, welcome to Insurance Business TV as we delve into the construction insurance sector with one of this year's five-star construction insurance providers, QBE. Every year, of course, we ask our broker audience to assess the construction insurance market and which insurers are delivering, and QBE was among those to earn the highest honours. So who better to turn to for a market update than its Director of Client Proposition, Matt Lacy. Matt, welcome to Insurance Business TV. 

[00:00:31] Matt Lacy: 
Thank you, Paul. Good to be here. 

[00:00:33] Paul Lucas: 
So Matt, construction risks obviously evolving very quickly from new materials to increasingly complex contracts. So how do you see underwriting adapting to these changes? And indeed, what does that mean for brokers trying to secure the right cover for their clients? 

[00:00:46] Matt Lacy: 
Sure. Yeah, I mean, look, the construction sector does continue to grapple with several systemic and emerging challenges, including things like inflationary pressures on materials and labour, trade and supply chain uncertainty, increasing regulatory compliance, as well as climate-related risks, and a whole host of continuing issues around skill shortages. In addition, the expectations around sustainable construction of materials have really presented challenges for both businesses and insurers. So at QBE, we've supported customers through these challenges by enhancing access to sector-specific risk insights and tools. Our underwriting teams continue to collaborate closely with brokers to ensure that our pricing and our capacity reflect current and forecast exposures, whilst our risk solutions team have really helped customers embed resilience into both their short and long-term risk management strategies. We've also expanded our mental health risk support through our mines and business initiative to tackle one of the construction sector's most urgent underlying issues, which is workforce well-being. 

[00:02:01] Paul Lucas: 
Well, let's delve a little bit more into certain risks that the sector is facing if we can. Tool theft and site crime are on the rise, of course, especially affecting smaller contractors. What practical steps can insurers and brokers take together to help clients manage those exposures without escalating costs? 

[00:02:19] Matt Lacy: 
But, you know, as you say, you know, this is an increasing worrying issue both for clients and for insurers, you know, and that tool and equipment theft is a persistent and growing issue in the industry that has direct impacts both on costs and to project delivery timeframes. You know, at QBE, we pay attention to the data. Our risk solutions team regularly review claims data to identify trends and hotspots for theft. The analysis they do enables us to advise customers on security measures ranging from improved security and lighting to asset tagging and tracking technology. We can also lead security management reviews and with access to specialist partners for enhanced protection. The aim here isn't to encourage more spend on security but it's really to help customers select the right tools and strategies to maximize resilience and their return on their investment. Also, where possible, we support flexible coverage arrangements that incentivise the rollout of a robust theft deterrence strategy. 

[00:03:23] Paul Lucas: 
Of course, no insurance conversation is complete at the moment without a little bit of a focus on technology. It is playing a bigger role across the insurance lifecycle from risk assessments to claims. So where do you see the biggest opportunities for tech to add value for brokers and their clients in the construction sector? 

[00:03:41] Matt Lacy: 
So, you know, our construction practice uses technology to improve insight, responsiveness and risk visibility across the entire insurance lifecycle. We have an online platform called QRISC. This gives customers access to structured risk assessments, e-learning, progress tracking and reporting, also having access to a library of guidance documents all in one place. Now, this has become a really valuable tool for our customers who use it for benchmarking, managing construction site safety and health and liability and water risks. In claims, we use data analytics to identify causes and in collaboration with our risk solutions team, seek to reduce the overall cost of risk. An example here would be our QB Return Plus program. This enables early intervention for injured workers, is underpinned by a digital case tracking program and helps businesses avoid excess work-related injury absence. As a result of this, you know, this reduces the absence costs incurred for our clients and reduces the loss of earnings of any claims made. You know, we also utilize technology through our partnerships, where a customer uses, say, telematics or drones or on-site sensors. We work with them to ensure the insights that they gather are reflected in our underwriting and our risk evaluations, thereby closing the loop between what we call digital innovation and the actual insurance outcomes that our clients will see. 

[00:05:18] Paul Lucas: 
So obviously a lot of interesting things going on with technology and interesting developments in the wider market as well, of course, with government plans to invest in infrastructure and housing. So what challenges and opportunities do you see ahead for insurers and brokers that are looking to support those major construction projects? 

[00:05:36] Matt Lacy: 
At QBE, we welcome the renewed policy focus on construction and infrastructure. We have been and still are a long-term partner to many of the UK's primary contractors. We're well positioned to support the construction sector's ambitions and plans for housing, transport and energy development. Our deep knowledge of the commercial realities and the contractual structures of major projects enables us to support customers with tailored solutions that support efficient delivery and improved risk transfer. As government funding and procurement programs scale up, we at QBE are ready and willing to help our clients navigate through these programs. 

[00:06:13] Paul Lucas: 
Well, government funding might be scaling up. So, of course, is the focus on sustainability and ESG. Those pressures are increasingly influencing how construction firms operate. So what role can brokers and insurers play in helping clients navigate those demands while still managing those core risks? 

[00:06:30] Matt Lacy: 
Look, I mean, the industry is facing increasing ESG regulatory compliance as well as climate related risks. Both brokers and insurers should work closely together to support customers to ensure they're prepared to navigate these challenges. For example, at our QBE construction practice, our leads work hand in hand with the key functions within the business, so that's underwriting, claims and our risk teams, to ensure that the joined up thinking results in effective and timely solutions. Their combined experience across both the insurance industry and the construction sector ensures that we're tracking sector-specific risk landscapes. And we're anticipating those merging trends from ESG measurement to contractual or regulatory complexity. This approach really facilitates excellence in service and builds a high level of trust with our customers. 

[00:07:21] Paul Lucas: 
You've been very generous with your time, Matt. I just want to throw one more question at you, if I can. Mental health and workforce well-being, of course, are becoming increasingly critical risk factors in the construction sector. So from your perspective, how can the insurance industry support brokers in having more informed conversations with their clients around this? 

[00:07:46] Matt Lacy: 
I think you're spot on with your observation. Mental health and workforce well-being are increasingly recognised as a critical risk factor in the construction sector. Last year, we carried out some research finding that half of all UK construction workers, nearly one and a half million people, have worked in a dangerous environment while suffering with poor mental health and close to 700,000 of those people suffered injuries. So from an insurance perspective, QBE's mind and business initiatives offers brokers a powerful tool to engage clients in more informed conversations around those risks developed in collaboration with the mental health charity Mind and various specialists in organisational culture and resilience. What this programme does, it provides a strategic assessment framework that helps businesses benchmark and improve their own mental health strategies. So by integrating mental health wellbeing into risk management discussions, brokers can highlight how proactive mental health support not only enhances employees' safety and morale, but it also reduces workplace incidents and claims exposure, ultimately strengthening business resilience and performance. 

[00:08:55] Paul Lucas: 
Yeah, great tips, Matt, and fantastic to have you with us. If people want to find out more, how can they get in touch? 

[00:09:03] Matt Lacy: 
Yeah, thank you, Paul. Yeah, I mean, we have plenty of information around our offerings and our capabilities on our website. So please go to our website to find out more about how we can support clients in the construction space. Similarly, we are actively promoting information and sharing information on LinkedIn. So there'll be information available in both of those places. 

[00:09:21] Paul Lucas: 
Great stuff. And many congratulations again to you and the QBE team on your success in the Brokers on Construction report. And remember, for more insights from experts like Matt, we'll see you next time right here on Insurance Business TV.