AXA XL partners with COMPASS to expand its subcontractor default insurance offering

AXA XL has partnered with COMPASS to expand its subcontractor default insurance (SDI) business in North America with new prequalification tools for its construction clients.

COMPASS is a digital prequalification platform used by general contractors to assess subcontractor's counterparty risk. Its product suite, developed by Bespoke Metrics, aims to simplify the collection and organisation of subcontractor data while providing advanced analytics to supplement and support a general contractor's internal risk management.

The Q score, for example, gives a numerical assessment of subcontractor risk based on business characteristics, financial information and health & safety records, serving as an unbiased independent benchmark for decision making.

Michael Ho, chief executive officer at Bespoke Metrics, 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 revolutionise the prequalification process."

Jason LaMonica, profit center head for AXA XL's SDI business, noted the challenges currently facing contractors and subcontractors. "Supply chain disruptions and work restrictions necessitated by social distancing needs can have big impacts on some subcontractor's ability to perform,” he said. “In a recessionary environment, access to cash and capital can be constrained for many subcontractors, further exacerbating the problem.”

LaMonica said giving AXA XL’s SDI clients access to tools like COMPASS helps them make informed, data-based subcontractor selections. "Using these tools can help them avoid potentially hefty financial losses and reputational damage that can occur when a subcontractor defaults and is unable to finish contracted work," he added.