According to the broker, expert coverage (PI) insurance companies have launched a quiz with construction companies about whether companies are adequately monitoring their use of artificial intelligence (AI).
Miller Insurance highlighted new issues in its London Construction Market review.
There has been much talk about AI technology that improves efficiency and accuracy in the construction sector, but he said there is growing concern among insurers about risks related to areas such as governance and data security.
“The proposal currently includes questions about AI, reflecting concerns about intellectual property issues, design errors and potential negligence due to inadequate monitoring,” the broker said.
According to Miller, insurers are particularly keen to consider how construction companies use the generator AI to design, plan and forecast risk.
The use of AI has gained popularity in recent years due to improved technology, including construction. last monthBalfour Beatty has announced a £7.2 million investment in Microsoft's 365 Copilot AI tool that runs alongside applications such as Outlook and Excel as part of its digital transformation strategy.
The contractor said the aim was to increase productivity and site safety through automation and better decision-making.
Guidance published by the Institute of Architecture (CIOB) that was chartered last year It encourages construction workers to treat AI as “new co-workers.”
According to the document, AI provides opportunities to improve daily work patterns, and the CIOB encourages staff to “treat AI as a new colleague, a construction assistant, and may remove burdens from repetitive data tasks.”
“Create a place where you can provide complementary analytical skills, pattern recognition, consistency and increased processing speed.”
According to Information Commissioner's OfficeAI systems that restrict data laws can “advance known security risks and make them more difficult to manage.”
Companies are obligated to process personal data in a manner that ensures that it is not processed unauthorized or illegally, which can be difficult when using AI systems.
January, science, innovation and technology unveiled advice Protect your AI systems from cybersecurity threats.
Elsewhere in Miller's six-month overview, “robust” ability and “good” appetite among PI insurers was to promote competition and promote premiums.
A six-month report released last month by Gallagher, another broker, also said that rising competition is pushing interest rates down.
However, Miller warned that small business issues remained.
“There is a clear trend that the contractual requirements for PI restrictions, especially from public sector bodies and tier single contractors, are high as market conditions are improved.”
“This puts pressure on several consultants and expert subcontractors, and has significantly increased the cover to maintain a soft opportunity qualification.”
He said that companies that demonstrated strong internal governance, robust quality control processes and clear supply chain diligence would get better deals.
Early this year, Construction News We investigated whether changes were introduced under the Building Safety Act 2022 It could lead to a halt in the PI insurance market, as we did in the aftermath of the Grenfell Tower Fire in 2017.
Commenting on the impact of the law, Miller said: “Early conflicts suggest that a breakdown in safety compliance could constitute a violation of professional obligations, and perhaps spark a claim of PI.
“These cases shape future coverage interpretations, particularly with regard to known risks and exclusions related to regulatory violations.”
