AXA XL teams up with COMPASS to help construction clients assess subcontractors’ default risk
AXA XL ’s Subcontractor Default Insurance business in North America has expanded its subcontractor prequalification tools for its Construction clients with an exclusive partnership with COMPASS, a digital prequalification platform used by general contractors to assess subcontractor’s counterparty risk.
“Our current economy and operating environment is challenging for contractors and the subcontractors that they rely on. 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. Giving our 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.” – Jason LaMonica, profit center head for AXA XL’s Subcontractor Default Insurance (SDI) business.
The COMPASS product suite, developed by Bespoke Metrics, “simplifies the collection and organization of subcontractor data while providing advanced analytics to supplement and support a general contractor’s internal risk management”. One key feature of COMPASS is the Q Score – a numerical assessment of subcontractor risk based on business characteristics, financial information, and health & safety records – which acts as an unbiased independent benchmark for decision making.
“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.” – Michael Ho, CEO of Bespoke Metrics.