AXA launches engineering risk insurance for Brazil's construction sector

During May, AXA launched engineering risk insurance for Brazil's construction market in partnership with the Brazilian construction industry chamber (CBIC) and GEO Property Management.

The French insurance group created the new product in response to the requirements of its clients and hopes to gain a significant share of the market over the next 12 months, according to local insurance publication Sonhoseguro.

"The market currently has very similar products and they offer a standardized clause," said superintendent of engineering risks at AXA, Mauro Santos, was quoted as saying. "In this regard, we changed certain concepts after listening to the demands of the construction sector."

Santos noted that the company offers flexibility regarding payment of premiums in installments over the entire term of a construction project.

The engineering risk product has already been approved by insurance regulator Susep and can only be purchased from the insurer online. The maximum coverage is 100mn reais (US$29mn) for a construction project that lasts up to 48 months.

'The construction sector is very important. The national scope of CBIC's insurance agreement is an important asset for our ambitions in this market and we hope to issue some 12mn reais in premiums in the first year, considering CBIC's client base and the country's current economic situation," said Vanderlei Ravazzi, technical P&C director at AXA.