As we approach the second half of 2025, the mood across the evolving construction insurance market could be described as cautiously optimistic.
Key Takeaways:
- Overall, the construction insurance industry is in a softening cycle, with most product lines and geographies benefiting from more favorable conditions.
- Surety is a cost-effective alternative to bank guarantees, offering off-balance-sheet obligations and stable capacity and rates.
- Contractors can employ six strategies to manage risks head-on, thereby bolstering profitability and financial stability.
James MacNeal, Global Head, Construction and Infrastructure, said:Our global perspective and local knowledge have enabled us to create this detailed report, providing relevant and practical solutions for clients globally.
Extreme weather-related events are increasing in frequency and severity, presenting challenges and growing risks for the construction industry. Increased investments in Infrastructure will continue to drive growth in the Surety market.
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Although there is generally adequate insurance capacity for construction projects globally, certain projects may experience higher rates and less availability due to risks associated with natural catastrophes.
This article was originally published by AON.
