Assessment Of Builders Risk Insurance Implementation In The Nigerian Construction Industry

Generally, there have being low patronage of insurance by construction industry.Builders‘ Risk Insurance (BRI) is a policy that provides coverage for risks that occur during construction of buildings. The desired benefit of BRI to the stakeholders would only be attained if the policy is successfully implemented. BRI policy is relatively new and the level of implementation in the Nigeria construction industry is yet to be assessed. Therefore, the study was aimed to assess the implementation of BRI policy in theNigerian construction industry. The focus was on the level of awareness, compliance, enforcement and barriers to implementation of the policy. A mixed method research design was adopted which includes both quantitative and qualitative research methods. The quantitative method involved the use of questionnaires in which 118 questionnaires was designed and administered to construction companies and 26 questionnaires was administered to insurance companies. The construction companies were selected using convenience sampling and a census was taking for insurance companies. The qualitative method involved the use of interview which was conducted with National Insurance Commission and Federal Capital Development Authority. The Questionnaire data collected was analysed using percentile, mean score to rank and Kendall‘s Coefficient of Concordance (Kendall‘s W) to test level of agreement from both companies on compliance and barriers militating against implementation of the policy. The interview data was analysed using content analysis by stating the highlights of the interview conducted as only one person were interviewed in both organizations. The study found out that the level of awareness on BRI is moderate with 51.05%. The study also found out that the level of enforcement of BRI by NAICOM is low. BRI certificate is not yet a requirement checked by FCDA before approval of construction work. The level of compliance by construction and insurance companies is moderate based on 0.55 agreement level. Inconsistent Government policy with Mean Score (MS = 4.27), ineffective implementation and enforcement strategy (MS = 4.18), unstable economic condition (MS = 4.12) and poor attitude towards insurance services (MS = 3.81) were ranked among the top barriers to the implementation of the policy. The study concluded that the level of awareness and enforcement is inadequate. The level of compliance is moderate. Therefore, a framework for enhancing implementation of BRI is been proposed.

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