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Marsh Targets Construction for Growth

NEW YORK CITY-Seeing opportunities as building firms rethink their approach to risk, the insurance broker has hired Mark Reagan to lead its global practice.

By Paul Bubny | Updated on March 04, 2010

NEW YORK CITY—Insurance broker Marsh said Wednesday afternoon it’s looking to the global construction industry as a growth area for 2010 and beyond. To help target these opportunities, the company has hired industry veteran Mark Reagan as chairman of its 60-member global construction practice.

Although Marsh’s US Insurance Market Report 2010 doesn’t anticipate a big jump in construction activity domestically, the global picture may be a little brighter as some industry sectors begin to recover from the worldwide economic downturn. Either way, Marsh says in its report, construction firms are faced with a variety of concerns that lead them to take a fresh look at their approach to risk management.

The wave of distressed properties, and its implications for builders that may or may not get called upon to finish stalled projects, is one such concern. “As a result of the economic downturn, the construction and real estate sectors have become all too familiar with the term ‘distressed properties,’” the report states. “Projects often receive this label after construction stalls, key project stakeholders default or enter bankruptcy, or lenders foreclose. Distressed properties can present an opportunity for a prospective buyer that can assess the true cost of taking over the property and measure it against potential future gains. With appropriate due diligence, and a properly structured insurance program that covers existing and future liabilities, stalled projects can be completed and converted into profitable ventures.”

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