Insurers use real-time data to track builder performance – Expert

This comes at a time when construction sign-ups reached an all-time high.

Insurers in Australia are turning to digital technology to manage growing risks in the construction sector, where company failures are at record highs.

Data from the Australian Securities and Investments Commission (ASIC) shows over 2,100 construction companies entered administration in the past year. This is the highest number of any sector. 

This has prompted insurers to adopt new tools such as live data platforms and drones to strengthen risk assessment and reduce potential losses.

Assetinsure, a provider of builders warranty insurance, said it is using digital platforms and real-time data to detect risks earlier and work directly with builders to prevent issues.

“When you have access to real-time data and modelling from day one, you’re in a far
stronger position to assess risk and prevent losses,” said Mark Sinfield, Head of Construction Warranty Insurance at Assetinsure. 

He noted that monitoring tools such as drones can also help verify construction milestones and reveal early signs of financial distress.

Whilst technology is helping to modernise underwriting, Sinfield stressed that human oversight remains essential in builders warranty insurance, which is complex and heavily regulated. 

“It’s still vital that assessments include the human element. I firmly believe you need to be in the room with builders. But that doesn’t mean we shouldn’t innovate,” he said.

Insurers are also using automation and artificial intelligence to personalise policies, speed up claims, and improve service efficiency. 

According to Sinfield, these tools are already delivering results: insurance policies can now be better matched to a builder’s profile, AI is helping cut claims delays, and risk modelling is improving underwriter accuracy.

Looking ahead, Sinfield said the sector would benefit from more consistent regulation and improved data-sharing across states, particularly as the construction market remains under financial pressure.