Demand for Construction related Insurance will grow in Colombia…

Demand for Construction related Insurance will grow in Colombia…

Jardine Lloyd Thompson Limited (JLT) Associate Irene Bruni this week presented at the first international insurance conference of the Colombian ACOAS - ‘Insurance for Construction and Infrastructure Projects’. Following the announcement in January that public institutions and private companies will invest 55 trillion Colombian pesos (US$24.66 billion) in infrastructure projects this year JLT expects there to be a large increase in related insurance requirements in the region.

Irene Bruni highlighted during her presentation the importance of construction not simply being viewed as a class of insurance, “it is important that the broker appointed for the project has a good understanding of the industry and knows which insurers are most suitable for which risk. Sometimes what appears to be cheap insurance can turn out to be expensive if the conditions are not appropriate for the type of project or claims are not paid”.

The presentation focused the key areas of risk for construction projects as well and core and non core construction cover. In particular there was emphasis on the importance of local insurance companies seeking international support.

Irene Bruni concluded that “For large construction and infrastructure projects, local insurance companies need the support of the international markets; especially that of the London market because it has the Capacity and also the Creativity and Flexibility necessary for the demanding market in Colombia and South America today.”

Comments are closed.