Construction is booming in the U.S. despite stubborn headwinds from labor shortages, supply chain delays, high material costs and other issues facing contractors. Fortunately, there is no lack of ideas to address these challenges. In this issue of Zurich Construction Insights, we look closely at the top trends affecting contractors today. In addition to builders risk, casualty, professional liability and environmental risks, we highlight legislative and judicial trends that have long been a concern of the industry. You’ll also read further on how sustainability is most relevant to the construction industry. There is an increased focus on using eco-friendly materials such as green cement and mass timber as well as deploying energy efficient designs. These approaches are helping shrink the carbon footprint of construction projects. Weather parametric coverage is another great example of a modern insurance solution available to owners and contractors to help protect against extreme weather events without requiring a physical loss to trigger coverage. Modular construction is a growing trend in the construction market due to the method’s potential opportunity to save resources, reduce waste, and provide a controlled environment for workers, an especially important feature in locations with extreme temperatures. Helping protect workers while building more efficiently is a no-lose approach. Our experienced Zurich Construction team discusses the rise of megaprojects, those with values that oftentimes well exceed $1 billion. We’re expecting that trend to continue, as the demand for massive projects like chip manufacturing plants and those that make batteries for electrical vehicles continues to grow in part due to the availability of federal funding through the Inflation Reduction Act, the CHIPS and Science Act and the Infrastructure Investment and Jobs Act, all of which contain features that have led to construction growth. In addition, given the strides being made in Artificial Intelligence, the growth in data centers is unprecedented with no end in sight. Critical trends, such as auto, continue to fuel adverse loss experience for both contractors and their insurers. While the challenges in this space are not “new” news, there are many factors that drive the deterioration of auto performance across the country, and many customers are taking action to prevent and reduce severe loss, especially on large fleets. While emerging trends create challenges for the industry, construction companies are taking advantage of technological advances. Many workers now sport wearables that track health information and businesses are increasingly utilizing telematics in vehicle fleets to monitor driver behavior and provide other meaningful data insights that can facilitate safety culture change within organizations. These innovations are tools that employers may welcome in their efforts to help keep their people safe. Construction risk managers are aware that the market for coverage is firm. But those who have helped differentiate their companies as best-in-class will find there is plenty of provider support for their risk transfer needs. Contractors that investigate and implement innovations that are helping make their business safer and more efficient are also making themselves more attractive in the insurance market. We look forward to further conversation on the topics presented. Please reach out to your broker to arrange a discussion on sharing additional insights and how to best help protect your business from the future of risk. Best regards,