Artificial intelligence, internet of things (IoT), blockchain, AR/VR, 3D printing, modular construction, BIM, sensor technology, robotics, exoskeletons, computer vision, cloud computing and more – undoubtedly, there is a massive wave of technology hitting the construction and asset management sector of the economy. Some are calling this digitalization of the physical world the fourth industrial revolution, and the good news is that construction companies are right in the middle of this revolution.
While the massive influx of technology presents the possibility of opportunities for growth and efficiency, CEOs, CFOs, COOs, Risk Managers and now CIOs (Chief Innovation Officers) at some of the top design and construction firms in the world have indicated that they are overwhelmed with the number of technologies coming to market and that they need help navigating through these applications. Many leaders within the construction industry, when engaged on how they are sorting through construction and asset management technology, say they need help with organizing the technology and developing a framework to assist with decisions on investments in technology for their companies and for their clients’ companies, particularly given more and more contractors are playing a leading role in operating the post-construction asset.
The insurance industry can also play a key role in helping overwhelmed construction stakeholders navigate through the technology options in the market. Insurance collects mounds of information on what has gone wrong on construction projects, in both the construction phase and the operations phase of the asset.
Each policy collects information on when things have gone wrong – claims, either valid or invalid, are made against these policies and thus represent data around something going wrong. Many of the players within the insurance sector, both insurers and brokers, are rushing to better organize and develop their data in order to provide clients deeper insight into how to better run their construction companies and their projects. Right now, much of the data held at these companies holds the potential that will allow for better decisions. Some of the data is beginning to get developed and has the potential to act as a compass for helping construction stakeholders manage the real risks that are impacting their companies and their projects.
Source: Aon
Source: Aon Global Construction & Infrastructure Group
This failure data represents a repository of problems that need solving within the construction and asset management sector. These are real problems as they have been arrived at quantitatively using statistically significant samples of claims data. Several solutions coming from the technology sector are looking to solve problems that are perceived versus real. The data from the insurance sector represents that pool of real problems and now those bright minds within the technology space can apply their knowledge to solve the problems that matter to all construction/project stakeholders.
For example, the above charts cite water damage claims represent 62 percent of all claims losses under the builders’ risk, or property insurance during construction. Specifically the claims within that 62 percent are water damage due to plumbing or mechanical issues and building envelope intrusion. This very real problem can be resolved by a number of technologies entering the construction and asset management sector including sensor technologies that operate during construction by monitoring moisture or sensor technology put in place during construction and kept in place in operations to monitor pipe pressure or leaking. These technologies advise the contractor or owner that water damage is occurring, and some technologies allow for control of the on/off switch for the water locally. It’s pretty simple: match real problems from hard data to solutions.
By simply linking failure data with the solutions in the marketplace the insurance sector is poised to help clients and capital navigate the immense volume of new technologies coming to the marketplace and empower them to choose the technologies for the real risks they face on their projects and operational assets. To take things one step further, it might even make sense to use this data to design new, bespoke solutions for a client’s unique situation, rather than just look for a solution currently in the marketplace. Greater certainty will come to all involved if they are solving those problems that need to be solved. It would appear the insurance sector could play a critical role in accelerating the economy to a more certain state.
Source: Aon
