RC115 NovDec 2024 - Magazine - Page 27
ticular project and tailor coverage accordingly—it gives them reassurance that there is greater risk mitigation built into the project than
there would be without digital twin technology. This precision in risk
assessment leads to more tailored pricing of insurance policies, often
lowering premiums for project owners and contractors.
Over time, the data generated by digital twins will also improve
the underwriting process. Insurers can use this data to develop more
sophisticated models for assessing construction risks, leading to
better-informed decisions about coverage. When incidents happen,
the data from the digital twin can also make the claim process easier
for insurers and clients alike. By providing a detailed and accurate record of the construction process and the structure itself, digital twins
enable faster claims processing, giving all parties to a claim (insurer,
broker, client and loss adjuster) the ability to exchange information
quickly. The digital twin can also facilitate the faster repair of a damaged asset.
The province of Ontario has selected Trillium Health Partners’ Peter Gilgan
Mississauga Hospital project to test digital modeling technology due to its complex
utility systems.
INFRASTRUCTURE ONTARIO
ships engine requires maintenance, the captain can then stop for a
repair, thus avoiding a machinery breakdown insurance claim from
occurring (which average at $600,000 per claim). This ends up saving
both the insurer and ship owner time and money. This same principal
can be applied to speci昀椀c buildings, general infrastructure, and other
assets once completed. For example, the sensors in a building can
be used to detect water in昀椀ltration, which can allow for prevention
before more of the building is damaged.
Lower insurance premiums and faster claims
Integrating digital twin technology in public infrastructure projects
also has signi昀椀cant implications for the insurance industry, particularly in construction. Insurance costs have increased around 25 per cent
each year for the past four years globally. The cost of insurance as a
percentage of project value is around 3.5 per cent in Canada and can
be up to 10.4 per cent in certain states such as New York. The ability to
use risk controls such as a digital twin can mitigate premium spend.
While insurers traditionally have and still rely on historical data when
assessing a project, digital twin technology allows for a more sophisticated approach to risk analysis and underwriting. It gives insurers the
ability to visualize the project and analyze various ‘what-if’ scenarios—such as the impact of a 昀氀ood or 昀椀re on the project site—and see
the e昀昀ect of risk mitigation techniques.
Digital twins provide a wealth of data that enables more accurate
risk assessment. Knowing that the project will have real-time data
about important risk factors makes insurers more con昀椀dent that these
risks will be identi昀椀ed and mitigated before losses occur. It allows
them not only to better understand the risks associated with a par-
RENEWCANADA.NET
Saving taxpayers money
Using digital twin technology in public infrastructure projects has
signi昀椀cant bene昀椀ts for taxpayers, who ultimately bear the cost of these
projects. Digital twins o昀昀er real-time risk mitigation and reduce the
likelihood of costly errors or delays.
The main way digital twins save money is by reducing construction
cost overruns. By 昀椀nding and addressing potential issues early in the
project lifecycle, digital twins minimize the need for costly rework or
modi昀椀cations during construction. This should lead to more projects
being completed on time and under budget, reducing the 昀椀nancial
burden on taxpayers.
Digital twins also enhance transparency and accountability in
public infrastructure projects. By providing a detailed, real-time
view of the project’s progress, digital twins enable better oversight
and reporting. This transparency helps ensure that public funds are
spent appropriately and that the project bene昀椀ts the community as
intended.
When construction is done, digital twins continue working. They
can contribute to long-term cost e昀케ciency by optimizing the maintenance and operation of public infrastructure. By enabling predictive
maintenance, digital twins can extend the lifespan of infrastructure
and reduce the need for expensive repairs or replacements.
Digital transformation leads to better infrastructure projects
Ontario’s investment in digital twin technology is a forward-thinking
move that demonstrates the potential of this technology to revolutionize public infrastructure projects. By enhancing risk mitigation, digital
twin technology o昀昀ers substantial bene昀椀ts to governments, taxpayers,
insurers and the construction industry alike.
For governments, digital twins are a powerful tool for managing infrastructure projects more e昀昀ectively, ensuring that they are completed on time, within budget and in compliance with safety regulations.
For taxpayers, this translates to more e昀케cient use of public funds and
improved infrastructure outcomes. Insurers bene昀椀t from more accurate risk assessments and streamlined claims processing, while those
working in the construction industry enjoy a safer and more e昀케cient
work environment.
As digital twin technology continues to evolve and become more
widely adopted, its role in the construction industry will expand even
further—ushering in a new era of smarter, safer and more cost-e昀昀ective public infrastructure projects.
Companies who make the investment in digitization will reap the
bene昀椀ts of building and operating a more resilient asset in the long
term.
NOVEMBER/DECEMBER 2024– RENEW CANADA 27
