Insurance rates have climbed steadily since 2018, growing 25% according to Marsh McLennan. It’s an enormous cost for construction firms, accounting for 5% or more of a project’s total cost, so controlling them is a high priority.
Worker’s compensation insurance is an important driver of insurance costs. Newmetrix has partnered with carriers to bring the safety benefits of Predictive Based Safety to their insured.
Using Newmetrix, Warfel identifies safety risks to more effectively target where safety resources will have the maximum impact on reducing incidents. As as result, they were able to secure a new insurance product at an incredible rate, which provides more control and breadth.
A PBS program combines the safety and project data you are already collecting with artificial intelligence (AI) to create metrics and predictive models to predict which sites are at the highest risk of an incident. These alerts, along with recommendations on how to mitigate them, enable teams to take action to prevent incidents before they happen. This preventative action leads to better results. Early adopters of PBS have seen their incident rates drop by more than 30% over a 12-month period.
Chances are, most organizations are already collecting the data required to power PBS.
Major carriers have partnered with Newmetrix to bring the risk reducing benefits of PBS to their clients. For instance:
One of the largest providers of worker’s compensation insurance to the construction industry, The Hartford is a believer in PBS and its implications.
“A better run business is going to result in fewer losses and there should be rewards for that - through underwriting, through terms and conditions, and the opportunities to purchase insurance...”
- Bret Bush, Risk Engineering Strategy and Execution Lead, IoT Innovation Lab
One of the world’s largest insurers and reinsurers, AXA XL has been partnering with Newmetrix as part of their TAMI (Technology Adoption Maturity Index) service.
“Predictive analytics is the next frontier of construction risk management. We are enthusiastic about the opportunity to, someday, be able to provide customized insurance based on what will be, instead of what was. This forward-thinking approach would provide our clients with the coverage and pricing specific to their risk profile, improving the experience for all.”
- Rose Hall, PE, CRIS; Vice President, Head of Construction Innovation
Newmetrix has produced two infographics to help construction companies navigate PBS to reduce insurance rates:
For more information on how PBS can help your organization control skyrocketing insurance rates and reduce incidents on your projects, contact us.