The construction sector is evolving and transforming the way it executes its plans and finances projects while using technology at every step. Big data and analytics have become essential as per economic agenda. From the use of drones and 3D printing to Business Information Modeling (BIM) and AR, the future of construction seems to be data-rich and analytics-driven.
BIM is an essential tool for the industry innovation and is tested by many construction companies. BIM is a process involving the generation and management of digitally representing the physical and functional features of a place or a building or any construction project which offers significant benefits including keeping within the budget, planning and operating on safe sites and thereby creating a digital memory of the building. However, organizations are struggling to adopt the innovation and moving from a document-driven world into a data-driven one.
The construction industry has almost adopted the other forms of technology innovation and is somewhat further behind. 3D printing is growing at a rapid pace because of its accuracy, the speed of construction, lower health and safety risks because many of the dangerous jobs will be removed at one stroke and would not be performed by humans.
With the advancement in technologies, which are coupled with opportunities there will be inevitably new risks that the construction sector will need to face and manage. As the industry became more data-centric and connected with IoT, AI, and machine learning, the cyber threat could be one more concern. With this enormous amount of data present, it can lure malicious actors for data theft.
Another factor is the potential increase in claims severity when a losITs occurs due to the use of advanced and expensive equipment. Innovations can amplify the nature of traditional perils by constructing buildings or bridges which are not suitable for that specific location.
As these projects become more complex, insurers need to work in partnership with the contractors throughout the lifecycle of the different projects, and also offer advice related to risk-mitigation whenever required. Hence, technologies can now challenge insurers to develop novel approaches to comprehend the risk factors and evaluate them accordingly.