XL Group has partnered with the American Contractor’s Insurance Group (ACIG), construction industry owned insurance organization, to provide data and analytics for construction clients. The goal is to drive continuous quality improvement throughout clients organizations and help construction clients enhance the quality of their work, deliver projects on time and prevent costly mistakes.
According to Jason LaMonica, profit center head for XL Group’s Subcontractor Default business quality is the second leading cause of subcontractor defaults, and one of the biggest areas of lost profit for a general contractor.
“Every dollar spent fixing a quality issue is four dollars of lost profit,” said LaMonica.”Historically, quality assurance and quality control have been evaluated in a mostly subjective manner making it hard to drive decisions based on trends and benchmarking. ACIG has come up with a standardized way to evaluate quality from firm to firm, and really start to capitalize on ‘big data.’ That changes the landscape.”
To help their clients improve quality, XL Group will use ACIG’s standardized criteria for assessment of 100 data points consistent with industry quality-related practices, in addition to data collected during the underwriting process. XL Group will access a repository of quality assessment data across ACIG’s book of contractors on a blinded basis for benchmarking purposes. Using that data, XL Group will be able to give objective feedback to their subcontractor default insurance customers, allowing clients to benchmark their quality practices against their peers within the industry, encouraging continual improvement to quality assurance/quality control programs and helping prevent insurance claims and potential profit losses.
XL Group plc’s insurance companies offer property, casualty, professional and specialty insurance products globally. XL Group is the global brand used by XL Group plc’s insurance and reinsurance subsidiaries.
American Contractors Insurance Group, Ltd. is a construction industry owned insurance organization. Together with its subsidiaries, it underwrites insurance policies and related services to its construction industry shareholders. The policies cover workers compensation, auto liability, general liability and subcontractor/supplier default exposures. The services include underwriting, risk management, supervision of claims, policy filings and administration, safety and quality control, engineering services and brokerage placement.
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