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New technologies to fundamentally change construction and engineering risk and insurance
Written by staff reporter
New technologies could lead to significant improvements in efficiency including enhanced monitoring, mitigation and management of engineering-related risks. But they bring with them new risks such as cyber. Global engineering insurance premiums for 2017 were estimated at around US$21bn, but have stagnated in recent years according to the latest sigma study from the Swiss Re Institute.
While London remains an important centre for construction-related insurance, increasingly engineering risks are underwritten from international hubs in Singapore, Dubai and Miami.
Mike Mitchell, head of Property & Specialty Underwriting at Swiss Re said engineering premium rates have been declining for over a decade. "Some engineering insurers' profit margins may already have been squeezed close to or below levels that are sustainable over the long term."