Positive growth signs for insurance in the construction industry

By: Infiniti Insurance

Construction industry stakeholders maintain there is cause for optimism in 2021 and beyond despite the persisting pandemic and slow economic growth.

This is according to a report in Engineering Week, while industry sources point to the R500 billion stimulus package that supports the need to fast-track civil projects announced by the Minister of Finance, Tito Mboweni last year, as part of the government’s infrastructure build programme which underpins transformation through inclusive economic growth to combat the impact of the Covid19 Pandemic.

“This optimism should be bolstered by taking into consideration lessons learnt during Covid,” says Infiniti Insurance Chief Executive Officer Sharon Paterson. “Engineering and Construction is a sector that has many small and medium businesses involved in addition to the larger players. Decisions taken as the industry re-emerges in this sector of the economy will affect ongoing viability particularly if another pandemic wave is experienced.

The support of Infiniti Insurance has enabled the Engineering division to withstand the severe economic downturn, explains Jim Connolly who heads-up the portfolio for Infiniti. “We stood by our clients during tough times with discounts on Plant and, where turnovers decreased, by absorbing the resultant premium decrease in our Contractors business.

He says the company’s engineering portfolio is expected to grow by some 25 percent in 2021/22 as recovery plans post the lockdown period are implemented.

Paterson suggests that companies revise every aspect of their operations to provide a more secure future amid changing business and social environments. “We see 2021 as a rebuilding year and have positioned ourselves to add value to brokers and clients on both major construction and engineering projects as well as the smaller start-up contractors in South Africa and several countries south of the Sahara.

“The direct and indirect impacts on businesses recovery plans now need to be prioritised and resourced in the risk management process and address disruptions in the non-life insurance market through a value network developed from a powerful combination of professional brokers, a team of Infiniti experts and independent specialists.

“The application of technology, in conjunction with the company’s innovative products and strong close up-front, on-going preventive engagement philosophy is helping to reframe the role of risk mitigation, operating in an increasingly complex marketplace.”

“A solid platform for moving forward with sustainability is largely based on mitigating risks. The prudent way of running a business is to establish and maintain an appropriate risk management programme that builds resilience and is not just about meeting a legislative requirement but it speaks to general business principles, ensuring sustainability, and the retention of customers,” she concludes.

Infiniti Insurance Limited is an A-(ZA)-rated non-life insurer that writes all classes of business including Aviation, Marine, Watercraft, Engineering, Heavy Commercial Vehicles, Liability and Guarantees