Pioneering risk management in the Canadian construction sector

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Leading MGA reveals how it’s transforming risk management in Canada’s construction sector, creating market certainty with expert insights and strong industry collaboration

IN AN industry as dynamic as construction, managing risk isn't just a necessity – it’s a strategy for paving the way toward stability and growth. This is the philosophy that drives Technical Risk Underwriters (TRU), a Managing General Underwriter (MGU) that has carved out a niche in handling complex first-party construction risks and large wood-frame projects. With over a decade of experience in the US, TRU is now making significant strides in the Canadian market. Since 2023, TRU Canada’s managing director, Chris Ayres, has been at the helm driving the company’s expansion. Speaking to Insurance Business, Ayres says that Canada’s construction sector is rich with opportunity. “We have challenges that are unique to Canada and the market we operate in, as well as global challenges that are being felt the world over,” Ayres explains. “In the Canadian construction sector, insurers and MGAs tend to deploy a short-term strategy; at TRU we do the exact opposite.”

Technical Risk Underwriters (TRU) is an MGA specializing in complex first-party construction risks. TRU provides market-leading service and expertise in aligning policy coverage and customized loss-control programs with each client’s unique exposures. Focus is everything. That’s why TRU provides unmatched market-leading Builder’s Risk capacity dedicated to large wood-frame and standard construction projects, focusing on residential, commercial, and institutional occupancies. TRU’s delegated underwriting authority for wood-frame Builder’s Risk makes them the #1 capacity provider in Canada. TRU are professional engineers, security, and construction specialists with an exclusive suite of insurance products developed specifically for clients who deserve to be recognized for their risk-management approach when seeking insurance for their construction exposures.

“In the construction sector, particularly in the wood-frame space, one of the biggest challenges is understanding how to best deploy risk management in a way that works for the client”

Chris Ayres, TRU

The Canadian construction sector is known for its robustness and growth potential but also for its inherent volatility. This makes the market ripe for the sophisticated risk management solutions that TRU offers. Ayres notes that the Canadian construction sector has suffered from a lack of deep industry expertise on the part of insurers and MGAs – a gap that TRU is determined to fill. With over a decade of experience in the US market, TRU has imported its successful model into Canada while adding a keen understanding of local nuances. TRU’s approach includes deploying its own managed security personnel and loss control engineers who are able delve into risk management practices that work to support federal and provincial regulations and standards. A key component of TRU’s strategy in Canada has also been its substantial investment in risk intelligence platforms. Before launching their operations, the team engaged deeply with key stakeholders in the construction sector to understand how best to leverage the latest tools to support the industry’s needs. “We’ve procured several risk intelligence platforms, and we invested heavily into the full offering, engaged and consulted with key industry professionals within the construction sector before we entered the market and started underwriting,” Ayres explains. “We wanted to make sure that we really understood what insureds in the construction space might need, and the sector has been crying out for that in Canada.”

Canada’s construction industry has seen some high-profile losses over the past few years, particularly in the large wood-frame space. Ayres says that a proactive and cutting-edge approach to risk management has never been more vital, and notes that MGAs quickly need to become more sophisticated in how they assess and manage risk. This means making use of the latest data-gathering and analysis technology and combining that with tried and tested face-to-face discussions with brokers. TRU already has a market-leading presence in the form of its US operations, and Ayres says that TRU’s ability to tailor competitive solutions by combining underwriting, security, and loss control under one roof has been one of its biggest strengths.

“The risks and exposures associated with a construction site evolve over time, and we’re able to integrate security and loss control with underwriting to consider how we can best achieve the goal of securing a site,” Ayres says. “The construction sector pushes the envelope in many ways – whether that’s supporting the economy, mass job creation, or providing critical infrastructure. The key stakeholders in the construction industry deserve to collaborate with insurance companies, and MGAs that recognize this have access to the latest tools and technology to support its growth.”

Ultimately, Ayres says that innovation and adaptability in construction insurance is critical. This means engaging with our brokers as industry standards and practices evolve and staying on top of new engineering methods as they’re introduced. “We recognize that the industry needs to be driven forward, and it’s no secret that there’s a talent gap,” Ayres concludes.

“The construction sector pushes the envelope and supports the economy, through mass job creation and providing critical infrastructure. The key stakeholders in the construction industry deserve to collaborate with insurance companies and MGAs that recognize and support this”

CHRIS AYRES, TRU

“If businesses and MGAs can become more sophisticated and more able to engage with younger people entering the industry, then we’ll be in a strong position for the future.” To learn more about TRU Canada and its risk management solutions for the construction industry, click here.

Bringing top-level expertise to construction

The importance of staying ahead of the curve

Published May 21, 2024

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TRU: Underwriting capacity in Canada

Wood-frame construction

DUA up to $100 million

Standard construction

DUA up to $100 million

Critical catastrophe exposures

TRU: Areas of specialty

Large wood-frame projects

Large standard construction projects

Natural catastrophe risks

Multi-family, commercial, and institutional occupancies

Developer master programs

Chris Ayres, TRU

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