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Commercial construction faces labor and materials cost headwinds
While property premium rates have softened, Risk & Insurance and QBE say workers’ compensation pricing may be approaching a turning point after years of buyer-favorable conditions.
Commercial construction is still expected to see modest growth in the number and scope of projects, but the sector is grappling with persistent labor shortages and volatile materials costs, according to an executive Q&A from Risk & Insurance in collaboration with QBE North America.
The discussion also pointed to unpredictability tied to inconsistent federal tariff application, which affects materials cost expectations for builders and insurers alike.
On pricing, property premium rates have softened, but the “long, easy ride” on workers’ compensation premiums may be nearing an end, the outlet said.
The piece further notes that buyer-favorable market conditions are emerging as capacity expands and the threat landscape evolves, adding that the value of top medical malpractice payouts has more than doubled over the past five years.