CEU: Building the future

Through CEU, Santam has been able to develop offerings and solutions for clients in the construction market, addressing the unique obstacles and challenges they face.

Construction and Engineering Underwriters (CEU) opened its doors in 1985 and has since become the engineering underwriter with the largest footprint in South Africa.

CEU is now the specialist business division of Santam, and as the largest engineering underwriter in South Africa, it is not surprising that it is the insurance partner of choice for all annual construction and engineering contractors of industry heavy-weights such as Grinaker LTA, Concor Construction, Murray & Roberts, ALSTOM and Vodacom.

Scope of cover

CEU insures large production plants, road and engineering works in South Africa, Mauritius, Angola, Mozambique, Namibia, Tanzania, Madagascar and throughout Africa. The typical risks CEU has covered over the last 12 months included road rehabilitations, townhouse developments, the erection of concentrator plants for the mining industry and the building and refurbishing of private dwellings. Cover for homeowners extending their dwellings is provided under a Contractors All Risks policy. Construction companies insure their own plant as well as the works that they undertake.

CEU has also been involved in the construction of three soccer stadiums for the Soccer World Cup, as well as the major "Ring Roads" rehabilitation taking place in Gauteng. “We have also seen quite a significant upgrading trend of hotels, guesthouses and works in the Kruger Park and other areas,” notes James Bishop, Head Chief Operating Officer of CEU.

It has further been involved with a number of multi-billion rand construction projects, including the Berg River Dam project in Franshhoek, valued at R2.5 billion; the pipeline from the Vaal Dam to Secunda, valued at R2.2 billion; and a new platinum mine with surface infrastructure worth R5 billion.

Challenges

One of the more colourful requests CEU has received was for breakdown cover for machines used to feed juvenile crocodiles, along with loss of profits cover should the crocodiles die as a result of machine failures!

“The CEU team has had to overcome many interesting obstacles and challenges in the African market in recent times,” says Bishop. “These include additional claims following consequential losses as a result of poor design and faulty workmanship. This often leads to large losses and, in some cases, death to third parties, which can be covered by a policy. Machinery breakdown losses are also on the increase due to faulty operations.”

Service offering

At underwriting stage, each client's needs are assessed individually and a solution is advised, based on the assessment. “CEU is flexible in its approach to tailor-make most requirements. In addition, we have large capacities and also offer foreign currency policies in most of Africa,” adds Bishop.

Coupled with 45 years of engineering underwriting experience, the claims department has well over 40 years experience managing corporate and commercial claims within South Africa and other territories. The team works from a central point in Illovo and is committed to the set turnaround times which have been well-received within the market.

Embracing the future

“CEU has taken the lead to train and attract young, qualified individuals into this field,” says Bishop. “The training that CEU has offered to brokers throughout Africa has not only improved relationships, but also their skills and confidence. It has certainly increased our footprint and penetration within the construction commercial market.”

“The outlook for CEU is very positive, as we see new developments in mining, solar power and wind power reticulations,” he adds. “Our young enthusiastic team has also contributed to expanding our footprint in Africa.”