2025 Global Construction Insurance & Surety Market Report

As the global construction insurance industry steps into the second half of 2025, the prevailing sentiment is one of cautious optimism. While uncertainty still lingers in several areas, industry participants are increasingly encouraged by the underlying strength and resilience of the market. A favourable underwriting environment is emerging, driven by increased insurer capacity and strategic efforts to capture growth across various geographies and product lines.

Growth Opportunities in an Expanding Market

Momentum is building thanks to the surge in large-scale construction activity, particularly within infrastructure, clean energy, and advanced manufacturing sectors. These megaprojects are fuelling demand for sophisticated insurance solutions, offering insurers the opportunity to underwrite complex and high-value risks. Alongside this, technology is playing a transformative role. Digital platforms, predictive analytics, and automation are helping enhance operational efficiency, improve safety protocols, and enable smarter risk management across project lifecycles.

"Our global perspective and local knowledge have enabled us to create this detailed report, providing relevant and practical solutions for clients globally." said James MacNeal, Global Head, Construction and Infrastructure.

Navigating Persistent Risks and Market Challenges

Despite positive developments, the construction insurance sector must grapple with a variety of structural and environmental challenges. The increasing intensity and frequency of natural disasters continue to strain underwriting portfolios, particularly in catastrophe-exposed areas. Economic volatility and inflationary pressures remain significant headwinds in many regions. Persistent issues such as labour shortages and fragile supply chains contribute to project delays and cost overruns, adding further complexity to underwriting decisions. Moreover, markets like Japan are currently experiencing deteriorating conditions, underscoring the uneven nature of global recovery.

Evolving with the Market to Sustain Momentum

For the construction insurance sector to continue advancing, it must remain agile and adaptive. Selective underwriting remains prevalent, particularly in higher-risk segments, and carriers will need to balance the pursuit of growth with disciplined risk assessment. The industry’s trajectory is promising, but its continued success hinges on its ability to evolve with emerging risks and seize opportunities amid shifting market dynamics.

Structure of the Report and Regional Focus

This report explores the key market forces shaping the current state of construction insurance. The initial sections examine industry-wide trends - both beneficial and challenging - and highlight the fundamental drivers of growth. Detailed insights are then provided across four major lines of business: construction property insurance, professional liability, casualty insurance, and surety. These segments are analyzed within the context of six primary regions: North America, Europe, the Middle East and Africa (EMEA), Asia-Pacific (APAC), Latin America, and the London market, where applicable. The final chapter outlines strategic considerations for companies navigating this intricate and evolving landscape.

Diverging Pressures in Property Insurance

The property insurance landscape within construction remains a study in contrasts. On one hand, the rise in extreme weather events - including storms, floods, and wildfires - is pushing up risk exposures and prompting insurers to reassess their appetite in certain geographies. On the other hand, the industry’s growing adoption of advanced engineering methods, improved design protocols, and risk-mitigating technologies is making many projects safer and more insurable. The net effect is a market that remains dynamic, with both upward and downward pressures influencing underwriting behaviour.

Regional and Segmental Variability in Market Growth

Market performance continues to vary based on both geographic location and project type. Public investment in infrastructure is acting as a core growth engine, especially in the United States, parts of Asia-Pacific, and Latin America. Simultaneously, demand is being driven by high-tech manufacturing initiatives such as the development of semiconductor fabrication plants and data centres. Rapid urbanization and government-led capital expenditure in countries like India and China are also expected to contribute to sustained expansion in the region.

Capacity and Pricing Trends Across the Market

Overall, capacity in the construction insurance market is stable, with most insurers actively deploying capital in well-understood and strategically aligned risk categories. Pricing has largely remained steady across much of the sector, although clients with strong risk management frameworks and favourable loss histories may be able to negotiate more competitive terms. However, this general stability does not extend to natural catastrophe coverage, where elevated claims activity and climate uncertainty continue to drive more cautious underwriting, limited capacity, and upward pressure on rates.