Lessons from Implementing an Insurance Model for Reclaimed Construction Materials

Written by: Lenard da Costa Kurek / Dominik Campanella (Concular)

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The journey of developing and implementing an insurance solution for reclaimed construction materials has been one filled with valuable lessons. As part of the Concular CBC RCMI project, we have made significant progress, but we have also encountered challenges that highlight broader issues in the construction and insurance industries. Here, I want to share some key takeaways from our process, hoping they will be useful for those working on innovation in circular construction, insurance, and sustainability.

1. Reflection on Key Performance Indicators (KPIs)

KPIs played a vital role in shaping our strategic decisions. For instance, our KPI on engaging key market players (target: 12, achieved: 30) helped us recognize that papers developed by Concular, such as the Circularity Guidelines for the public sector were an effective means of outreach. This

unexpected level of engagement led us to deepen our partnerships with policymakers and expand our advocacy efforts. On the other hand, our KPI on the number advanced-stage insurance products (target: 10, achieved: 7) revealed that certain material groups required more development time than anticipated. Factors such as regulatory uncertainty and logistical challenges slowed down progress, prompting us to rethink our approach.

We also found that tracking engagement on LinkedIn and our website (target: 500, achieved: 6000) provided valuable insight into the level of public interest. This indicated a growing market demand for solutions involving reclaimed materials, reinforcing our commitment to scaling the project. 

Key Lesson:

KPIs should not just measure success but also serve as strategic tools for refining project direction. Regularly evaluating them can help teams pivot and optimize their efforts effectively. Moreover, monitoring qualitative factors alongside quantitativeKPIs can uncover insights that would otherwise be missed.

2. Identifying Ideal Stakeholder Groups

Initially, we assumed that project developers and insurers would be our primary stakeholders. However, as the project evolved, we realized that material suppliers, deconstruction firms, and policymakers played equally crucial roles. Their involvement influenced the shaping of our insurance package, highlighting how a more comprehensive ecosystem was needed.

Additionally, as the project progressed, we observed that local governments and municipalities also had a vested interest in sustainable construction practices. Public procurement policies emerged as a critical factor, influencing which organizations could best benefit from our solution. This shift in understanding allowed us to tailor our approach more effectively and build a stronger coalition of support.

Key Lesson:

Stakeholder mapping should be an ongoing process. Understanding the evolving roles and concerns of different players ensures more robust and widely applicable solutions. Organizations must remain adaptable and open to engaging unexpected allies in their journey.

3.Characteristics of Ideal Replicating or Adopting Organizations

Organizations that are best suited to replicate our model share common traits. They tend to have:

·  A strong commitment to circular economy principles

·  Experience in material reuse or sustainable construction

·  Established relationships with insurance providers and regulators

·  A willingness to engage in iterative product development

In addition, successful adopting organizations often have prior experience in navigating regulatory challenges, as this can be a significant barrier to scaling innovative solutions. Organizations with strong public-private partnerships have also shown greater ability to integrate reclaimed materials into large-scale projects.

Key Lesson:

For successful adoption, organizations should already have a foundational knowledge of sustainability and a proactive approach to risk management. Additionally, pre-existing networks and institutional support can significantly increase the likelihood of success.

4. Needs of Replicating Organizations

For organizations looking to adopt our insurance model, certain resources are critical:

·  Access to industry data on reclaimed materials

·  Support in navigating regulatory landscapes

·  Training on risk assessment and product validation

·  Collaborative networks with insurers and developers

·  Financial incentives or grants to support early-stage adoption

Without these foundational elements, scaling such solutions can be challenging. Ensuring these needs are met can accelerate adoption. We found that organizations that received mentorship or structured guidance were more likely to overcome initial adoption barriers.

Key Lesson:

Providing a structured framework, including educational resources and policy guidance, is essential for scaling solutions effectively. Funding mechanisms and strategic partnerships play a vital role in reducing the financial and operational burdens on replicating organizations.

5. The Role of End-User and Beneficiary Feedback

Gathering feedback from end-users—construction firms and developers—was crucial in refining our approach. Many expressed concerns about quality assurance and liability risks, leading us to emphasize warranty guarantees in our insurance package.This feedback loop improved trust and confidence in our model.

We also discovered that some stakeholders needed clearer documentation and guidance on how to integrate reclaimed materials into their projects. In response, we developed detailed implementation manuals, case studies, and a knowledge-sharing platform to facilitate smoother adoption.

Key Lesson:

Listening to those directly impacted by a solution enhances its credibility and practicality. Incorporating their feedback leads to better adoption rates and ensures that solutions remain user-friendly and effective in real-world applications.

6. Stakeholder Feedback and Broader Insights

Beyond end-users, a diverse range of stakeholders contributed valuable perspectives. Insurers emphasized risk factors, regulators highlighted compliance challenges, and material suppliers provided logistical insights. This multi-dimensional feedback helped us create a more resilient and adaptable solution.

One particularly valuable insight came from municipalities, which indicated that integrating insurance solutions into public procurement processes could be a game changer for scaling adoption. This led us to explore new pathways for influencing policy frameworks.

Key Lesson:

Diverse stakeholder engagement leads to a more comprehensive understanding of challenges and opportunities. The broader the perspectives, the more robust the final solution. Continuous engagement with different stakeholder groups fosters innovation and ensures solutions remain relevant to market needs.

Final Thoughts

Innovation, especially in sustainability, requires patience, iteration, and resilience. While we have made great progress in developing an insurance model for reclaimed construction materials, real-world implementation still faces hurdles. However, we remain committed to finding ways to push forward and ensure that circular construction becomes a viable and scalable reality.

For those working on similar projects, we'd love to hear from you! What challenges have you faced in implementing circular economy solutions, and what strategies have helped you overcome them?