From silos to systems: Rethinking risk in construction insurance

Construction projects are focussed on project delivery, risk management and risk transfer.

Delivery is often siloed, with engineering, finance, legal, project management and procurement teams operating autonomously and independently.

We believe that an integrated approach is beneficial in identifying, communicating, mitigating, managing and transferring risk.

From silos to system thinking

The Construction Risk Ecosystem

Systems thinking

Systems thinking, a discipline rooted in understanding how parts interconnect with the whole, is increasingly being applied to the construction and maintenance of the built environment.

Systems thinking is also at the heart of how we design risk transfer arrangements for projects across the globe.

Why systems thinking matters

Construction projects are complex. They involve multiple stakeholders, long timelines, static, emerging and evolving risks and interdependencies that traditional thinking struggles to capture. Systems thinking helps us to:

• Clarify understanding: Understand the bigger picture, spot hidden connections and bridge gaps.
• Anticipate ripple effects: Spot intended and unintended consequences.
• Design better coverages: Align insurance with systemic risk profiles and stakeholder interests.

Systems thinking acknowledges and embraces the complexity inherent in major construction projects.

Insurance through a systems lens

At Willis, we apply systems thinking to how we design and deliver risk management arrangements. This means:

• Project and Policy alignment: Bespoke policies to reflect individual project characteristics.
• Resilience by design: We recognise that projects evolve.
• Collaborative underwriting: Engaging with clients and underwriters to create resilient risk transfer frameworks.

By taking a systems view, we optimise risk transfer for the unique features of each project.

From thought to action

Systems thinking isn’t just a buzzword—it’s a mindset shift. To do this, we are:

• Moving from transactional to transformational thinking.
• Embracing interdisciplinary collaboration and understanding.
• Focusing on relationships between systems and stakeholders.

Let’s rethink risk. Let’s design insurance that supports systems, not just structures.