Integrating emerging technologies into construction is no walk in the park, but the potential rewards are driving builders to rethink their strategies. As Thomas Strong, NFP’s senior vice president of construction technology and innovation, puts it, “Technology integration is big.” Gone are the days when buildings served merely as shelters; they’re evolving into sophisticated systems akin to “giant computers.” This shift is not just a trend; it’s a fundamental transformation that reshapes how we approach both construction and risk management.
The complexity of modern projects has skyrocketed. Builders are no longer just erecting simple warehouses; they’re creating intricate distribution centers that demand higher tolerances and extensive power requirements. Even standard industrial projects are starting to resemble data centers, packed with low-voltage systems and intelligent controls. This complexity poses significant challenges for builders, but it also opens up avenues for risk mitigation that savvy brokers must consider when developing insurance coverages.
Emerging technologies can be game-changers in managing risk, both during construction and long after the last nail is driven. Wearables and vehicle control systems enhance on-site safety, while alert systems can quickly shut down critical utilities in emergencies. “The big trend is a smart, connected job site,” Strong notes. Imagine walking a job site equipped with a 360-degree camera that captures everything in real-time, uploading the data to a cloud where algorithms analyze it for progress updates. AI-powered cameras can monitor worker safety compliance and even detect near-misses, offering a proactive approach to risk management.
In the U.S., insurance carriers are beginning to recognize the financial benefits of these technologies. Companies employing sophisticated project management systems are managing their risks more effectively, leading to lower claim frequencies and severities. Strong highlights that this trend hasn’t fully taken root in Canada yet, but it’s a harbinger of what’s to come. Brokers are adjusting their assessments, rewarding contractors who implement technological risk controls, such as smart valves and theft-detection cameras. The goal is twofold: enhance operational efficiency and minimize risks.
This shift in risk management requires brokers to navigate multiple product lines, including construction liability, builders risk, professional liability, and environmental liability. Each of these areas can benefit from technological advancements. Brokers are tasked with helping clients understand how investments in risk controls can lead to reduced premiums and deductibles. It’s a delicate balancing act, but one that’s essential for navigating the complexities of modern construction.
Moreover, end users are pushing for more control over building automation systems, demanding to manage everything “from one pane of glass.” This desire necessitates extensive low-voltage wiring to facilitate Internet of Things (IoT) systems throughout the building. The implications are clear: buildings are becoming more complex to construct. It’s not just about building a hospital anymore; it’s about integrating IoT devices, sensors, and the software needed to manage these systems effectively.
As we look to the future, the integration of technology in construction will continue to evolve, influencing everything from project management to insurance coverage. Builders and brokers alike must adapt to this new landscape, recognizing that technology is not merely an auxiliary component but a core aspect of modern construction. The challenges are real, but so are the opportunities. Embracing this change can lead to safer job sites, more efficient operations, and ultimately, a more resilient construction industry.
