7 trends making engineering, construction claims bigger and costlier

Engineering insurance is a specialized product that covers some of the world's largest construction projects including the sites of new airports, power plants, high-speed railways and other public infrastructure. These high-cost projects take up to a decade to complete, in addition to billions of dollars, significant manpower and top of the line equipment, meaning their insured values can reach into the millions. In recent years, as construction projects have grown to become more complex and expensive, insured values have risen in turn, making any claims payouts higher and more costly for insurers. A new report from Allianz Global Corporate & Specialty (AGCS) examined these rising claims costs related to construction and engineering projects. The hope is that understanding the significant, steady increases in construction claims will enable insurers to better manage the associated risks. The report, Engineering and Construction Claims and Insurance Trends, outlines several trends contributing to these rising costs. The slideshow highlights seven trends making engineering and construction claims bigger and costlier, as outlined in the AGCS report. See also:

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