Munich Re Specialty launches Lloyd’s first construction rescue proposition

Munich Re Specialty has launched a specialist insurance product designed to cover rescue and crisis response costs following major tunnelling and underground construction incidents.

The insurer said its new construction rescue insurance proposition is the first product of its kind available in the Lloyd’s market and has been developed for owners, developers and contractors involved in large-scale tunnelling and underground infrastructure projects.

The launch builds on Munich Re Specialty’s existing miner rescue insurance offering and is intended to address growing demand for protection against the operational and financial consequences of catastrophic underground incidents.

According to the insurer, the policy provides funding for rescue and immediate recovery operations, including the deployment of specialist personnel and equipment, technical coordination and other emergency response costs, subject to policy terms and conditions.

Dan Rouse, group head of international casualty for global markets at Munich Re Specialty, said: “Following the launch of our miner rescue offer, expanding access to large infrastructure tunnelling projects that are subject to very similar exposures was an obvious next step.

”The ambition for this new offering further supports Munich Re Specialty’s experience providing contractors’ all risks and erection all risk solutions to some of the largest tunnelling and infrastructure projects in the world, to address risks that we are hearing from customers first hand.”

Client engagement

Munich Re Specialty said the offering responds to increasing concerns around supply chain disruption, construction risks and the complexity of major infrastructure projects.

Ahead of its launch, potential client engagement and development testing showed strong appetite and support from large infrastructure and engineering businesses.

Stephanie Ogden, chief executive for global markets at Munich Re Specialty, said: “Tunnelling is among the most technically demanding disciplines in global infrastructure and when a collapse occurs, the priority is safety of people.

”By providing this product, our aim is to support customers with the costs that amass exceptionally quickly and give project owners and contractors the time to ensure their focus can remain on the preservation of human life and welfare.”