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Australia—A closer look at SMEs in the construction PI insurance market—their risk profile, their approach to insurance and the types of claims they are experiencing

Published on: 27 October 2021
Published by: LexisNexis
  • Australia—A closer look at SMEs in the construction PI insurance market—their risk profile, their approach to insurance and the types of claims they are experiencing
  • Risk profile of SMEs
  • Risks arising from the coronavirus pandemic
  • Contractual risks
  • Environmental risks
  • Cyber risk

Article summary

Insurance & Reinsurance analysis: Small and medium-sized enterprises (SMEs) make up the majority of businesses worldwide. According to the ABS Swiss Re Institute, in Australia SMEs account for 99.8% of businesses, with construction based SMEs making up 14% of the SME market. When looking at professional indemnity (PI) insurance through the lens of a construction SME, there are particular drivers of purchase power and influences unique to the SME market. The coronavirus (COVID-19) pandemic has created a new set of challenges and compounded an already challenged construction PI market still recovering from the recent departure from the PI market of Lloyd’s syndicates and the cladding fallout following Grenfell in the UK and Lacrosse in Australia. Sarah Metcalfe, Special Counsel and Maxine Tills and Nicole Wearne, both partners at Clyde & Co, look at the risks currently faced by construction-based SMEs, the approach construction-based SMEs take to insurance and current claim trends in construction PI. or take a trial to read the full analysis.

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