FIS has become acutely aware of the growing issues within our supply chain regarding requirement, availability, and escalating cost of insurance (particularly professional indemnity), but also overall concern regarding support for our sector from the insurance industry. This has been widely reported across construction with the latest report from the Construction Leadership Council identifying that 55% of businesses responding had been unable to secure the level of cover that they wanted to buy.
FIS is exploring the possibility of developing a tailored, comprehensive, insurance solution aligned to the risk management principles identified in our FIS Product Process People Quality Framework that ultimately fairly prices risk and delivers value for money to our community. Through this process FIS intends to challenge the market by interrogating claims history and policy wording with a view to supporting a more structured and informed dialogue, address some of the trust issues that have built up and ultimately look at how we best share risk with the insurance sector.
Insurance is the ultimate trust based sector – premiums go up when trust goes down. Our remit from the Board is to challenge and, if necessary, disrupt and we are considering a number of potentially radical options, even the possibility of setting up a mutual insurance offering that ultimately would be owned by the industry.
We are not going to run before we can walk, but wanted to give you a bit of a heads up as to where this may go. Key to supporting change is information – it is critical now that we build on the anecdotal information members have shared and use hard stats to challenge and, if necessary, to disrupt insurance provision for our sector. So to this end please complete this short survey on insurance, even if you are perfectly happy with the support you are getting, we need a clear picture and the full range of views to understand scale and identify ground truths and ultimately support reform.
The survey is available here, should take no more than 5 minutes to complete and we are requesting responses by close of play on Thursday 27 May.
For more information on insurance, visit the FIS Business & Taxation Toolkit here