Taking the Measure of Risk: Enhancing Risk Management in Real Estate and Construction
By Newfront | Published January 3, 2024
A new proprietary tool is proving its value with Newfront clients
In the rapidly evolving industries of construction and real estate, effective risk management is a critical component of success. Companies need innovative tools to assess and mitigate risks proactively. One such application gaining attention is Newfront’s RiskPulse tool. RiskPulse provides advanced risk analysis capabilities to the construction and real estate sectors specifically but could realistically apply to any P&L metric.
Understanding the RiskPulse Tool
The RiskPulse tool translates potential losses into industry-specific metrics, enabling more informed decision-making regarding insurance coverage and risk management.
By utilizing proprietary algorithms and data analytics, the RiskPulse tool quantifies financials into safety outcomes, which companies can then act on, making projects safer and lowering insurance costs. It also provides real transparency into cost overheads by showing what a company is spending on incidents above and beyond its premiums—on an annual, quarterly, or even monthly basis.
Kyle Duke, a Senior Vice President in Newfront’s Construction practice, has used the tool to help companies facing escalating workers’ comp, general liability, and auto liability insurance costs. In one instance, by distilling these impacts into specific company costs, he won buy-in to implement rigorous onsite safety and loss control measures. The program decreased the company’s annual spend by 50% and reduced premiums that were expected to rise.
Benefits for Construction and Real Estate
The RiskPulse tool enables Newfront to conduct a comprehensive evaluation of potential business risks. It helps clients identify risk factors upfront, allowing them to develop targeted risk mitigation strategies. By understanding and managing risks efficiently, companies can increase the likelihood of project success, reduce costs, and minimize project delays.
Duke suggests that the RiskPulse tool delivers four specific and related benefits: a cost transparency benefit, a risk mitigation benefit, the benefit of a lower total cost of risk, and ultimately an improvement in a company’s ability to manage the overall welfare of the business. RiskPulse not only quantifies risk but legitimizes the need for enhanced risk control. Implementing stronger onsite and loss control strategies then produces the knock-on effect of reducing exposures and positively impacting performance.
A Path to Proactive Success
The RiskPulse tool introduces a valuable new dimension to businesses by providing a sophisticated new risk analysis capability. It is part of Newfront’s proactive approach to construction risk, one that incorporates risk analysis, onsite risk control programs, and insurance coverage calibrated to reflect both.
“When paired with our industry experts and Newfront’s advanced technology, the RiskPulse tool is a key aspect of our ability to work proactively with clients to identify, address, and reduce risk for all manner of construction projects,” said Matt Summers, Newfront’s Construction Practice Leader.
By leveraging the insights generated by the RiskPulse tool, companies can enhance their risk management strategies, minimize potential losses, and drive long-term success in a dynamic but costly business landscape.
Newfront is a modern brokerage transforming the risk management, business insurance, total rewards, and retirement services space through the combination of elite expertise and cutting-edge technology. Specializing in more than 20 industries and headquartered in San Francisco, Newfront has offices nationwide and is home to more than 800 employees serving organizations across the United States and globally.
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