Geo-political uncertainty, slow pandemic recovery and a continued threat of business interruption are keeping your mid-market Manufacturing & Construction clients up at night. Can their risk management strategies keep up?
While the market shows signs of softening, prolonged pandemic-induced struggles and the impact of war remain top challenges facing your clients in the Mid-Market Manufacturing & Construction sectors today.
“It’s a good news/bad news situation for these businesses and brokers are trying to find ways to help their clients navigate both existing and new risks in unprecedented times,” says Luke Sampson, Underwriting Specialist, Manufacturing for CNA Canada.
“The good news: capacity is starting to increase and the market is becoming more competitive, while the economy is expected to rebound as COVID-19 restrictions get lifted,” Sampson says. “And while certain classes and accounts with more challenging risks remain tough to place, insurers, like CNA Canada, are externally focused and looking to partner with brokers and clients to grow,” he adds.
“The bad news: the pandemic and the unprecedented geo-political atmosphere bring with it ‘a cloud of uncertainty that still hovers’ over these sectors.”
Within the Manufacturing space, it will take some time to recover from the global supply chain crisis ignited by the pandemic,” Sampson says, “However, in addition to pandemic uncertainty, global sanctions due to the war in Ukraine will continue to add pressure on already-fragile supply chains.”
“The impacts are echoed on the Construction side,” says Rob Herron, Underwriting Specialist, Construction at CNA Canada.
“With continued equipment and material shortages expected, CNA Canada business interruption solutions such as equipment loss of income and delayed start-up coverages, are good options to consider,” Herron adds.
“Contractors are still faced with continued project delays as they struggle to procure equipment and building materials as the costs of goods keep rising and they battle to find skilled labour,” Herron says.
FASTER RECOVERY, IMPROVED RESILIENCE
Throughout the pandemic, CNA Canada has made it a priority to help alleviate policyholders’ sleepless nights – whether via its improved claims handling, finding tailored coverage solutions or helping clients to enhance their risk management strategies and become more resilient to withstand future losses.
“Our dedicated, multi-line claims professionals have done a great job of building relationships with brokers and their clients via digital platforms in such unprecedented times,” Sampson says.
“We have highly specialized independent adjusters capable of handling large complex losses in different segments, including construction,” Herron adds. “In addition, we’ve focused on faster, more convenient paperless claims payments.”
“As well, CNA Canada’s experienced Risk Control consultants continue to be an invaluable resource for brokers, clients and underwriters in navigating these emerging trends,” says Sampson.
WHAT TO TELL YOUR CLIENTS
It’s more important than ever to help your clients prepare for and mitigate potential losses. CNA offers the following risk management tips to share with your clients:
Watch your supply chain – Have your risk managers review your business’ supply chain to identify exposures and update your business continuity/resilience plan accordingly, ensuring it remains relevant. Have advance plans and backup plans to become more nimble and react quickly when something unforeseen happens.
Review Insurance to Value – Given the increase in building material costs and supply chain disruptions, it’s of fundamental importance to be vigilant about replacement costs and ensure your business remains insured to value to avoid any post-loss claim issues.
Keep climate risk top of mind – All businesses, and especially those in construction, are affected by severe weather, including increases in wildfires, floods and hail. Identify your existing exposures and develop a plan to mitigate these risks.