Construction Technology Adoption and Its Impact on Risk Management, Safety, and Insurance Premiums in Ethiopia

Abstract

The main aim of this study is analyzing how the use of construction technology affects risk management, accident prevention, and insurance premiums in the Ethiopian construction sector are the main goal of this study. The study looks into the effects of using cutting-edge construction technologies on insurance coverage and expenses. A thorough analysis of pertinent literature, including studies on risk management, insurance policies, and the adoption of construction technologies, is part of the research process. Disk studies, secondary documents, observation, surveys, and interviews with professionals in the field such as consultants, insurance firms, contractors, and clients are more methods used to gather data. The results demonstrate the intricate connection between insurance prices and the adoption of construction technology. It has been noted that using cutting-edge technologies might affect insurance costs in both positive and bad ways. Innovative building techniques and materials can, on the one hand, improve safety, lessen hazards, and possibly even save insurance costs. However, implementing new technology may bring with it unknown dangers like equipment failures and cyberattacks, which might raise insurance premiums. Recommendations for insurance companies and building industry stakeholders are included in the study's conclusion. These suggestions center on the necessity of cooperation and information exchange between insurers and construction industry professionals, the creation of specialized insurance plans that address technological risks, and the application of risk management techniques that keep pace with the changing construction environment.