| dc.description.abstract | Although many factors have been analyzed as causes of project failure, the existing literature has not sufficiently explored the causal factors behind insurance claims, especially those related to contractors’ all-risk (CAR) insurance. This research examines two critical factors impacting CAR insurance claims: project characteristics and stakeholder quality. Specifically, it investigates how these factors contribute to risk and influence CAR insurance claims, drawing on historical data from two large Indonesian insurance companies and insights from construction experts. Project characteristics include company and project types, size, duration, and location, and stakeholders include project owners, engineering consultants, construction management teams, and contractors. Descriptive and inferential statistical methods, including binary logistic regression and conjoint analysis, were employed to achieve the research objectives. The results show that project characteristics, except duration, influence claim values. However, only project size, duration, and location significantly affect the likelihood of insurance claims. Lower-quality stakeholders, except for project owners, are more likely to exacerbate claims, with contractors having the greatest influence. These findings provide construction and insurance companies with valuable insights for managing risks and reducing losses by better assessing project characteristics and stakeholder quality to lower the value and likelihood of CAR insurance claims. This research looks at two key factors that affect the value and likelihood of CAR insurance claims: project characteristics, which are fixed, and stakeholder quality, which can be improved to reduce the chances of claims. This research offers clear indicators of stakeholder quality, making it easier to assess. These findings are valuable for both contractors and insurance companies. For insurance companies, the insights can help set more accurate premiums and improve risk assessment, reducing the uncertainty in CAR insurance. For construction stakeholders, these findings provide a way to assess risk exposure and choose partners who follow best practices in risk management. | |
