Global Construction Market Update

Marsh Speciality’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.

Key takeaways:

• 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.