As construction projects become bigger and harder to fund, given rate pressures and market challenges, many insurers are exiting or scaling back in the engineering market, says Allianz Global Corporate & Specialty (AGCS) Africa property and engineering head Seelan Naidoo.
He explains that the past year saw many losses from fires, mechanical failures and natural catastrophes globally, including the Hidrotuango dam collapse, in Colombia, which was estimated to have resulted in losses of more than $1.2-billion.