Where Construction Meets Tech: Preventing Claims with Smarter Tools-Where Construction Meets Tech: Preventing Claims with Smarter Tools

Video Transcription

Video Summary

The Inland Marine Underwriters Association hosted a comprehensive virtual class on integrating technology in construction to prevent claims, focusing primarily on water and fire damage risks. Key speakers, including experts from Insight Risk Technologies and construction risk management, highlighted that water damage is the most frequent cause of loss in construction projects, accounting for nearly 50% of claims, with fire and water combined responsible for roughly 79% of total claim payouts. The session emphasized the deployment of IoT technologies—such as water sensors, flow meters, and remote-controlled shutoff valves—that can detect leaks, temperature changes, and unauthorized site access in real-time, enabling rapid response and significant loss mitigation.<br /><br />The presentation detailed how these technologies not only prevent costly claims but also protect project schedules, reduce uninsured losses, and enhance overall site safety. Study data showed over a 90% reduction in average claims per project when such technology is installed. Panelists discussed challenges to adoption, including timing in project planning, cost concerns, and the need for early risk management involvement. They agreed that early integration, combined with support from brokers and insurers—potentially through premium credits or deductible reductions—would accelerate technology adoption.<br /><br />The speakers underscored that deploying these solutions ultimately benefits all stakeholders—owners, contractors, brokers, and insurers—by improving loss prevention, protecting reputations, and enabling better risk transfer decisions. The future outlook sees increasing use of smart technology as standard practice in construction, driven by technological advancements, cost reductions, and workforce acceptance, especially among digitally savvy younger workers. The session concluded with encouragement for proactive dialogue early in construction projects to maximize technology benefits and safeguard investments.

Asset Caption

A virtual class featuring four industry professionals who will share their expertise on the latest technologies revolutionizing the property and construction sectors.

Instructors begin with an in-depth training on the technologies in the space; the language of tech, deployment solutions, and what technology can and can't do. The class also covers brokering a technology-enabled client, offering insights into how technology adoption can enhance clients' risk profiles and produce significant ROI outside of insurance. Instructors share strategies for negotiating policy and pricing advantages by leveraging technology, as well as how to break free from the typical “price and terms” cycle to add real value.

Additionally, instructors highlight the benefits of IoT technology for insurers and its potential to positively impact on the bottom line.

Presented by:

Scott Allan
Chief Risk Officer, STO Building Group

Ted Way
SVP, Arthur J. Gallagher & Co.

Bret Bush
Co-Founder/EVP, Insight Risk Technologies

Michael Reich
Chief Underwriting Officer, Insight Risk Technologies

Keywords

Inland Marine Underwriters Association

virtual class

technology integration

construction

claims prevention

water damage

fire damage

IoT technologies

water sensors

flow meters

remote-controlled shutoff valves

loss mitigation

risk management

insurance

smart technology