Marsh Specialty’s Construction Practice has published its latest insurance market update.
The report provides an overview of the latest construction insurance market details on a global and region-by-region basis. It also looks ahead at what trends may occur in the remainder of the year.
- The construction insurance industry continues to experience:
- Significant claims cost inflation (in certain parts of the world)
- Considerable inflationary impact on values
- Constrained capital
- Uncertainty around interest rates.
- High levels of investment in infrastructure and technology, a rapidly evolving energy transition, shifts to address climate change, and many other indicators give great cause for confidence in the construction industry over the longer term.
- Many impacts of the ongoing challenging insurance market can be mitigated by a combination of risk management, consideration of retention levels and program structure, alternative risk transfer, and clear articulation of risk when presenting to the market.
- There has been an improvement in the availability of professional indemnity cover for the construction industry. However, this is not consistent across all regions.