On the latest episode of Risk Management: Brick by Brick, Jason Reichl is at RISKWORLD 2024 speaking to Rob McDonough, Managing Director of Marsh USA, a global leader in insurance broking and risk management.
In this episode, Jason and Rob explore the evolving nature of construction insurance. Listen in as they explore how risk managers are adapting to the new world of risk, forecast the trends of the next two years, and highlight the importance of curiosity for aspiring risk managers.
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Adapting to the New World of Risk
Over the past few years, many risk managers have seen their roles be elevated to the C-level. While this means they are able to interact more effectively with all members of the C-suite and have more involvement in decision making, it has opened them up to a new world of risk.
In managing this, Rob stresses that transparency is critical. Every party, whether they be a risk manager, client, or another stakeholder, should understand the risks involved in a project, and where their responsibilities lie. Avoiding transparency is likely to open you up to more risks, rather than mitigating the ones you can manage.
“That idea of transparency around those risks and proper allocation is more prevalent now than ever.”
Rob further identifies curiosity as a critical skill for anyone in construction insurance today. In fact, that’s the key trait Marsh USA looks out for in their hiring of fresh graduates.
Why?
Because asking questions and looking for new ways of doing things will offer you a fresh perspective into your risk management. This will help to keep you up to date with the new world of risk, and keep you ahead of the curve as the industry continues to evolve.
“Be curious. Ask a lot of questions. And if you have an idea on how to do something better, raise it.”
A Look Into the Next Two Years
In the next two years, Rob predicts a gradual slowdown around premium increases within the construction insurance market. However, he also envisions an enhanced focus on demonstrating how projects stand out.
Individuals will need to show what safeguards they have in place and how they are monitoring preventative measures in individual projects. This will be far more of a case by case approach rather than an overall focus on decreasing risks.
“Over the next 18 to 24 months. I do think you're gonna need to show why your project stands out and what sort of safeguards you're making. Whether that's water detection, whether that's cameras on site, monitoring those types of preventative measures I think will be great. And how you are trying to work around keeping workers safe as well.”
To find out more about the ever-evolving nature of risk management, tune in to this episode of Risk Management: Brick by Brick.
Apple Podcasts: https://apple.co/3KfU7eN
Spotify: https://spoti.fi/3KjnRr3
Podcast Host: Jason Reichl
Executive Producer: Don Halliwell
