Inherent Defects Insurance (IDI): Partnering for the long-term
Buildings, bridges, tunnels and other infrastructure are crucial for long-term economic and societal resilience.
Big, bold, and built by prestigious architects, many new building projects promise to deliver iconic headquarters for their high-profile customers. Such state-of-the-art projects also tend to be long, subject to cost pressure and complex. In any one of them, there'll be myriad structural and logistical challenges along the way – some known, many unknown.
Construction projects can be affected by a multitude of factors. Site conditions, adverse geology, complex design and construction methods, demanding coordination and tight schedule and budget - to mention just a few. Faced with these challenges it is no wonder that hidden defects invevitably find their ways into projects, threatening the stability of the structure and safety of the people.
Once completed, however, the challenges don't disappear. Defects due to design, workmanship or materials in the structural works, undiscovered at the time of project completion, can cause damage or threaten imminent collapse. Inherent (or latent) Defect Insurance (IDI) provides building owners with a long-term warranty – usually 10 years – against material damage caused by such structural defects.
At Swiss Re, we're committed to partner with our clients for the long-term. While IDI or decennial insurance are compulsory in a handful of markets, owners lack this protection in others. We're closing this protection gap by sharing our experience and products in markets where regulation is being developed, such as China, India, Algeria or Colombia. This is another instance of how we make the world more resilient.
Gregory Schiffer, Global Head Trade & Infrastructure, about the value of partnering with clients: "In today's complex world, our clients require unique protection products beyond standard reinsurance solutions. We provide flexibility with a wide range of tailored solutions and variable features to optimise our clients' capacity."