In the ever-evolving and increasingly complex construction industry, proactive risk management is no longer optional — it’s a necessity. To stay ahead in this dynamic environment, insurers need to leverage the most comprehensive and precise data available. In fact, risk data has transitioned from a desirable asset to an essential component of construction insurance.
A significant challenge in the construction industry is managing the enormous volume of data each project generates. A staggering 96% of this data goes unused, leaving decision-makers to rely on guesswork or instincts (FMI, 2020). However, with the analysis of data on fully integrated platforms, we can replace paperwork and spreadsheets with tech-driven, actionable insights.
The advent of data has revolutionized several industries, and construction is no exception. A McKinsey report revealed that data-driven organizations are 23 times more likely to acquire customers and six times as likely to retain them (McKinsey & Company, 2016). By harnessing data, construction insurance providers can deepen their understanding of project risks and create bespoke solutions for their clients.
Increasingly, contractors are acknowledging the vital role of risk data in effective risk management. I’m convinced that construction insurance providers should employ this data to paint a comprehensive picture of their clients’ risk profiles. This way, they can offer coverage precisely tailored to the unique challenges each project presents.
Utilizing project data from construction platforms like Procore empowers contractors to illustrate the steps taken to mitigate risk. Access to your risk data enables better representation, leading to more favorable terms for project insurance. For instance, Procore customers on average save 30% on premiums with Procore Risk Advisors, thanks to the use of their construction-specific data and insights.
Smart risk data is rapidly becoming a competitive differentiator in construction insurance. That’s why we offer access to Procore Risk Advisors. One of the major advantages of using risk data in construction insurance is the enhanced capacity for brokers to negotiate superior terms for customers. With data that accurately reflects a construction business’s risk profile, brokers can secure more favorable insurance terms. Consequently, construction businesses can enjoy broader protection and coverage at more competitive rates.
The influence of data on the construction industry is palpable. According to PricewaterhouseCoopers (PwC), construction companies can achieve cost savings of up to 45% through data-driven decision-making (PwC, 2019). By leveraging data, construction insurance providers can offer more efficient and cost-effective solutions.
Big data is a game-changer in the construction insurance industry. It enables providers to develop more accurate risk profiles, create tailored solutions, and deliver superior value to their clients. As the construction landscape continues to evolve, harnessing data and advanced analytics for risk management is more crucial than ever.