3 in 1 global construction news

1. Key takeaways from the Global Risks Report

The latest Global Risks Report shows volatility in the construction sector is no longer episodic – it is now structural.

The report reveals that many of the major risks that large contractors are already managing across their portfolios – such as climate disruption, supply chain fragility, cyber threat, geopolitical uncertainty, and tighter contracts – are compounding.

At scale, the issue isn’t a single disrupted project. It’s how multiple “manageable” disruptions are aggregating across regions and project types – and increasingly resulting in earnings and margin volatility.

Construction businesses can mitigate against these challenges by making risk decisions earlier in the project lifecycle – often before contracts are signed.

For more information on how robust risk management approaches can help organizations identify opportunities to build resilience and thrive, listen to this Risk in Context podcast episode.

2. Our expanded data center insurance capacity

Nimbus, Marsh Risk’s market-leading large-scale data center construction insurance facility, now offers limits up to USD $2.7 billion – inclusive of delay in start-up and business interruption coverage – for major data center construction projects in the UK, US, Canada, Europe, Australia, and New Zealand.

Mike Mathews, Global Digital Infrastructure Leader, Marsh, said: “Demand for more powerful and efficient data centers is accelerating technological innovation, particularly around AI and machine learning, which will revolutionize the way we live and work and reshape economic landscapes over the next decade. Marsh is helping clients in this sector work with communities to develop business strategies that will enable them to grow sustainably.

“By harnessing our global resources in critical interconnected areas such as capital management, construction, off-site power generation, environmental risk, and operational resilience, Marsh is enabling data center developers, operators, and owners to strengthen their delivery and resilience as we embrace the age of Industry 4.0.”

3. The latest on treaty renewal outcomes

At the 1/1/2026 renewal, treaty capacity increased through both new reinsurers diversifying into Construction & Engineering (C&E) and established markets seeking to maintain relevance. This resulted in all Guy Carpenter placed treaty programs being oversubscribed, with reinsurance programs on average being 33% overplaced (compared to 25% in 2025).

Reinsurer treaty capacity is at £275m which is its highest level since 2020; $17m of new capacity entered in 2026. Positive underwriting results from recent harder market years and an absence of large loss activity encouraged cedants to look at structure options and seek improved treaty terms and conditions. This occurred despite increasing projected loss ratios due to deterioration in softer market years (2014-2019) and rate pressure going forward. QS commissions increased by between 0.25% to 2%, which will compress reinsurer margin. XOL Risk adjusted rate change ranged between -10% to -20%, reflecting portfolio mix, structure and loss history. C&E rating reductions were aligned with the wider Speciality space such as Marine, Energy & Power. Clients increasingly sought reinsurers capable of cross-class support, with C&E programs leveraged by reinsurers to gain market share on premium-driven composite portfolios.

3 in 1 global construction news

1. Key takeaways from the Global Risks Report

2. Our expanded data center insurance capacity

3. The latest on treaty renewal outcomes

Our people

Paul Knowles

Related insights

Terrestrial variables influencing data centers

Canada’s data centre boom: Managing construction risk while seizing opportunity

Emerging technology in construction – risks and opportunities

2025 Construction specialty contractor risk report

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3 in 1 global construction news

1. Key takeaways from the Global Risks Report

2. Our expanded data center insurance capacity

3. The latest on treaty renewal outcomes

Speak with a Marsh representative

Our people

Paul Knowles

Related insights

Terrestrial variables influencing data centers

Canada’s data centre boom: Managing construction risk while seizing opportunity

Emerging technology in construction – risks and opportunities

2025 Construction specialty contractor risk report