How modern methods of construction are affecting clients’ insurance needs?

Construction

Authored by NIG

What’s the challenge?

Being a relatively recent development means there are questions over the longevity of some modern methods of construction (MMC) materials. It’s unknown how they’ll withstand the effects of flooding, escape of water and fire damage, for example, or even how they’ll be affected by general wear and tear over the years.

This is why insurers are increasingly asking for greater detail when it comes to MMC, so we can gain a full understanding of a building’s construction and build an accurate picture of the risk exposure.

Four things to know about MMC

  • MMC is a catch-all term to describe newer building methods which have emerged in recent years.
  • Examples of MMC include single rooms or whole homes constructed in factories and transferred to site, panelised construction and innovative methods used on site, such as insulated concrete formwork, thin joint blockwork or timber frames.
  • Benefits of MMC include greater efficiency, increased sustainability, lower costs and increased health and safety on site.
  • It is possible that there can be significant variations in the quality of the materials, components, construction, and ongoing maintenance related to MMC.

How can brokers help?

Providing us with detailed information about a building’s construction can help speed up the process and ensure your client gets the right cover.

Our underwriters may start to ask additional risk information regarding the construction of a building, enabling us to understand the risks in more detail.

The following can all be useful in helping us determine the construction of a building:

  • Google Street View
  • Planning Portals
  • The EWS1 Form (for high rise buildings)
  • Building Health & Safety File
  • RISCAuthority Questionnaires
  • Cladding Compliance Flowcharts

How can we help?

Our in-house team of surveyors are an invaluable resource when it comes to assessing the particular risks a property may pose.

We’ll send an expert to examine the insurance risk as part of our offering to ensure we are underwriting accurately and ensuring your client’s risk is properly covered.

Our Risk Assist tool also provides a wealth of information regarding building constructions and MMC.

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About NIG

We’ve been experts in commercial insurance for 125 years.

The National Insurance and Guarantee Corporation (NIG) is a broker only insurer; we believe in getting to know both the brokers we work with and their clients’ businesses, building trusted partnerships that last for the long-term. Our highly experienced underwriting team are focused on working with brokers to identify and understand the risks faced by UK enterprises. Together, with our risk control experts and risk management tools we develop solutions to help UK enterprises reduce and mitigate key exposures. We offer a wide range of products with flexibility to create tailored insurance cover and when clients need us, claims are dealt with quickly and fairly through a proactive claims approach.

Our trading model has been designed to reflect the differing requirements of how brokers like to trade, with regional offices, National Trading Centre, National Schemes Centre, eTrade Centre of Excellence and dedicated experts for specialist sectors.

We’re investing in new technology to make us even easier to trade with. We’re launching an online risk management resource supported by our in-house Risk Control Team and introduced online claims submissions to speed up the claims process, minimising disruption to clients’ businesses. We are also the only insurer two years running with a five-star rating for both TheHub and Software Houses, in the Insurance Times 2019 and 2020 eTrade survey.

We are dedicated to making UK enterprises more resilient.

NIG is a wholly owned subsidiary of Direct Line Insurance Group plc, providing stability and financial strength. Our policies are underwritten by U K Insurance Limited.

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