Unpacking Contractor’s All Risk Insurance: Key Insights
The Insurance Institute of Gauteng, in partnership with Bryte, hosted its last insights session for the year. David Chow, Regional Manager (Engineering) at Bryte Insurance, presented the session, which unpacked critical challenges and emerging trends in South Africa’s construction and insurance industries.
Despite the 81% confidence index, the civil engineering sector faces many obstacles. The statistics stated that 60% of all projects are cancelled annually. David stated that some of the key risks include the “Construction Mafia,” which he described as notorious for aiming to cause malicious property damage, coercion and theft. Originating in KwaZulu-Natal in 2015, these groups use intimidation to secure shares in projects and to create concerns which only cover property damage caused by riots or politically motivated acts.
David brought attention to the tragic George building in May 2024, which resulted in 34 deaths resulting in extra scrutiny of the industry and highlighting the need for stricter safety standards and regulations in construction, it’s important to understand the serious legal implications involved, highlighting the need for better oversight in construction practices.
Another problem David mentioned is mega losses which are large losses that arise from catastrophes such as floods and wildfires. The nature of these risks means that there will be increased claim costs, strain reinsurance capacities and impact profitability. David went on to mention that it is important for the insurance industry to navigate these pressures without losing focus on the industry’s shift towards green infrastructure and sustainability.
David’s presentation addressed the construction mafia, the impact of mega losses and the need for collaboration between the insurance and construction industries to respond to evolving risks. Adhering to strict regulations and safety standards is essential for sustainability. David closed with a quote that resonated with the audience, “You can’t stop the waves, but you can learn to sail.”
Article written by Deidre’ Henneberry | IIG Education
