The partnership with COMPASS, expands AXA XL’s subcontractor prequalification tools for construction clients
AXA XL has joined forces with Bespoke Metrics to use the latter’s digital prequalification software COMPASS to help construction clients in evaluating the default risk of subcontractors.
According to Bespoke Metrics CEO Michael Ho, the tools offered by COMPASS will help general contractors in avoiding potentially hefty financial losses and damage to their reputation when a subcontractor defaults and is not able to complete contracted work.
For AXA XL, the partnership expands the subcontractor prequalification tools of its subcontractor default insurance (SDI) business in North America.
AXA XL is the property and casualty and speciality risk division of French insurance major AXA.
The COMPASS product suite is said to make the collection and organisation of subcontractor data simpler. The platform offers advanced analytics for supplementing and supporting the internal risk management of general contractors.
Michael Ho said: “COMPASS prequalification tools are designed to strengthen the interdependent partnership between general contractors and subcontractors. With efficient data collection procedures, evolving analytics, and a feature set designed for subcontractors, we expect to revolutionize the prequalification process.”
One of the main features of the COMPASS platform is the Q Score. This feature is a numerical assessment of subcontractor risk, which is made on the basis of business characteristics, financial information, and also health and safety records.
According to AXA XL, the Q Score feature functions as an unbiased independent benchmark to help in decision making.
AXA XL SDI business profit centre head Jason LaMonica said: “Supply chain disruptions and work restrictions necessitated by social distancing needs can have big impacts on some subcontractor’s ability to perform. In addition, in a recessionary environment, access to cash and capital can be constrained for many subcontractors, further exacerbating the problem.
“To help contractors be extra diligent in selecting subcontractors, we’re excited about our exclusive partnership with COMPASS. It gives our Construction clients access to another tool to help in their subcontractor prequalification process.”