Proactive Building Management Is Now an Insurance Advantage

Insurance Is Changing Fast: Why Proactive Building Management Is Now a Competitive Advantage

I recently attended an industry session hosted through the Building Owners and Managers Association Edmonton North chapter, focused on ESG, climate risk, and insurance implications.

It was a strong session with a lot of smart people in the room.

But what stood out to me wasn’t just the information, it was how quickly the landscape is shifting, and how many building owners and boards may not fully realize what’s already changing beneath them.

The Insurance Market Isn’t What It Used to Be

For years, the insurance market moved in relatively predictable cycles.

Hard market. Soft market. Repeat.

That cycle used to stretch out over 6–7 years.

Today?

It can shift in as little as 3 years, sometimes faster.

And now, with AI-driven underwriting models and real-time data inputs, pricing can change in a matter of weeks—not years.

We’re also seeing:

• Increased underwriting appetite for well-managed commercial buildings
• Higher deductibles and stricter terms for properties with frequent or severe losses
• Renewal caps following catastrophic claims
• Rapid pricing adjustments based on new data inputs

This isn’t theoretical, it’s happening now.

The Big Shift: From Reactive to Proactive

The biggest takeaway from the session was this:

👉 Insurance is no longer just based on what happened.
It’s increasingly based on what you’re actively doing to prevent it.

That’s a fundamental shift.

Historically, claims history carried the most weight.

Today, insurers are asking:

• What systems are in place to reduce risk?
• How often is the building reviewed and maintained?
• Are issues being identified early—or after failure?
• Is there a documented process behind the management of the asset?

In short:

👉 Can you prove you’re managing risk… or are you just hoping nothing goes wrong?

Why This Should Sound Familiar (But Often Doesn’t)

Before getting into insurance, I spent over a decade in the equipment industry.

We were dealing with assets worth anywhere from $250,000 to well over $2 million.

And one principle was never questioned:

👉 Preventative maintenance wasn’t optional, it was expected.

Because downtime was expensive.
Breakdowns were avoidable.
And reactive repairs cost far more than proactive care.

So here’s the question:

Why isn’t that same mindset consistently applied to buildings?

We’re talking about:

• Multi-million dollar structures
• Portfolios valued in the hundreds of millions
• Assets that house people, operations, and long-term investments

Yet in many cases, the approach is still:

👉 “We’ll deal with it when something happens.”

That gap is starting to matter, a lot.

The Reality of Today’s Risk Environment

Buildings today are facing more exposure than ever:

• Hail events severe enough to replace asphalt roofs every few years
• Wildfire risks increasing across regions
• Heavy rainfall overwhelming drainage systems
• Water damage from small failures that go unnoticed
• Rising crime, vandalism, and theft

At the same time, inflation continues to drive up the cost of repairs and claims.

This combination is forcing insurers to be far more selective.

And the result?

👉 Well-managed buildings are being rewarded.
Poorly managed or high-risk buildings are being priced accordingly.

A Factor Many Don’t Talk About (But Should)

There’s also something else influencing pricing more than most people realize:

👉 Credit profile.

There is a strong correlation between credit score and claims behavior.

I remember sitting at an insurance conference years ago where a CEO of a major insurer was asked:

“If you could underwrite insurance based on only one factor, what would it be?”

His answer was simple:

👉 “Credit score.”

That stuck with me.

Because behind that data is something bigger:

• Operational discipline
• Financial responsibility
• Consistency in decision-making

And today, with AI-driven pricing models, these correlations are being applied more aggressively than ever, sometimes resulting in 5–25% swings in pricing.

The Role of Your Broker Has Never Been More Important

In this environment, your broker shouldn’t just be placing your policy.

They should be part of your strategy.

Working with someone like Sheldon, or any broker who takes a proactive approach means:

• Starting renewal conversations 120+ days in advance
• Identifying risk factors early
• Positioning your building as an attractive risk
• Helping tell your story to underwriters

Because make no mistake:

👉 The way your building is presented matters.

Risk Management Doesn’t Need to Be Complicated

One of the most practical takeaways from the session was this:

👉 Risk management plans don’t need to be complex to be effective.

They just need to be:

• Consistent
• Documented
• Proactive

Even simple steps can have a meaningful impact:

• Regular building condition reviews
• Roof monitoring and drainage checks
• Identifying moisture or heat loss early
• Upgrading materials where recurring issues exist
• Keeping records of all preventative efforts

And most importantly:

👉 Using that information during renewal discussions.

Because if it’s not documented and shared - it doesn’t exist in the eyes of an underwriter.

Where This Is Headed

We are moving toward a model where:

• Buildings are continuously evaluated
• Risk is priced dynamically
• Data matters more than assumptions
• Proactive management creates financial advantage

This is where I see a major opportunity.

A Practical Step Forward

One of the ways I’ve been approaching this is through proactive aerial building scans.

Not as a one-time service.

But as part of an ongoing risk management approach.

Things like:

• Tracking roof condition over time
• Identifying potential moisture intrusion early
• Monitoring heat loss through thermal data
• Creating a visual and documented history of the building

It’s not about reacting to problems.

👉 It’s about reducing the likelihood they happen in the first place—and proving it.

Final Thought

If you own or manage a building today, the question is no longer:

“Do we have insurance?”

It’s:

👉 “How are we actively managing risk and can we prove it?”

Because in today’s market, that answer is starting to directly impact:

• Your premiums
• Your deductibles
• Your insurability

And ultimately…

👉 The long-term performance of your asset.

If you’re starting to think differently about how your building is managed and how that ties into insurance…

I’m always open to a conversation.

No pitch, just comparing notes.