The Global Construction Insurance Market is experiencing some positive trends. Most notably, there is a consistent theme around a softening insurance market in most regions. Key trends and insights include:
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01
Market Conditions
- The construction insurance marketplace has become increasingly competitive, driving rates down for most regions.
- Builders Risk/Contractors All Risk and Construction Casualty being driven by increased competition among carriers.
- Rate reductions are common, with brokers challenging on coverage enhancements and product innovation.
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02
Construction Liability
- North America Casualty still has some challenges.
- Elsewhere, Construction Third Party Liability has seen a rapid improvement, with many carriers increasing their available capacity at both Primary and Excess/Umbrella attachment points.
- Deductible structures are generally well balanced now, particularly around retention levels for Worker-to-Worker and Personal Injury claims.
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03
Market Outlook
- The favorable market conditions for clients are expected to continue through the remainder 2025 and well into 2026.
- Continued competition for desirable Construction Projects will likely drive further improvements on both rate and coverage.
- The focus should be on securing technically strong lead/primary insurers with a panel that is known for consistency in Construction insurance coverage. Always keeping one eye on preparing for the next market cycle.
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04
Key Considerations
- Clients should absolutely make the most of the increased competition, but carrier incumbency remains crucial.
- Understand the Claims expertise and depth of each carrier being considered.
- Build and maintain strong relationships with long-term, reliable carriers during all market phases.
- Risk tools and Analytical models can help effectively present information to underwriters through high-quality underwriting submissions.
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05
Emerging Trends
- The construction industry is seeing increases in both complexity and the ultimate insured values of many projects in development. Rapidly evolving technology is requiring bespoke insurance solutions tailored for each unique individual project.
- By understanding the market trends and working closely with your Willis broker, construction industry stakeholders can navigate the current market effectively and prepare for future developments.
For more actionable insights on current market conditions see our quarterly video series below.
Disclaimer
Please note the observations in the Global Construction Market Update video series are based on our experience with WTW clients and trends across the global markets, but they are not a whole market study.
WTW offers insurance-related services through its appropriately licensed and authorised companies in each country in which WTW operates. For further authorisation and regulatory details about our WTW legal entities, operating in your country, please refer to our WTW website. It is a regulatory requirement for us to consider our local licensing requirements.
