Allianz, a leading underwriting giant, delves into the financial and safety considerations of mass timber construction in its latest installment of the Commercial Emerging Risk Trend Talk series. The report highlights key findings, including the novelty of mass timber assemblies, evolving regulatory frameworks, and heightened fire risks during construction.
With mass timber gaining traction as a sustainable alternative in construction, the report underscores the need for a comprehensive understanding of associated risks. While offering potential benefits such as reduced carbon footprint and cost-efficiency comparable to steel and concrete, the adoption of mass timber introduces new challenges and safety considerations.
Michael Bruch, Global Head of Risk Advisory Services at Allianz Commercial, emphasizes the importance for companies to proactively assess their exposure to risks associated with mass timber, including fire hazards, water damage, and structural vulnerabilities. Robust loss prevention measures are essential to mitigate these risks effectively.
The report also sheds light on the growing acceptance of mass timber in construction, particularly in Europe and North America. With over 2,000 mass timber projects underway or completed in the U.S. alone by December 2023, and the global market reaching $857 million in 2021, the trajectory of mass timber construction is on an upward trajectory, projected to reach $1.5 billion by 2031 according to Allied Market Research.
As the construction industry embraces mass timber for its sustainability and economic benefits, Allianz remains vigilant in monitoring emerging risks and advocating for proactive risk management strategies to safeguard against potential liabilities.
