Richard Gurney, Global Head of Construction at Marsh Specialty, said: “Long-term macro trends point to an encouraging outlook for construction, notwithstanding some of the short-term issues that both the sector and the global economy face around the interest rate environment and cost inflation.
“The high levels of investment in infrastructure and technology, rapidly evolving energy transition, means to address climate change, and many other indicators give us cause for great 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. Of course, there are nuances in the construction insurance markets by region and country, which are explored in the Market Update.”
Marsh Speciality’s Construction Practice has published its latest Global Market Update summary.
The report provides readers with the latest market details at both a global and region-by-region basis and provides expert and informed opinions on what trends may occur throughout the year.
The summary was compiled using commentary shared during Marsh Specialty’s most recent Global Construction Market Update webinar, held in December 2022, at which Marsh’s construction leaders across the globe discussed current market conditions, the reasons behind them, and thoughts for how 2023 might develop.
Richard Gurney, Global Head of Construction at Marsh Specialty, said: “The consensus that emerged from the recent construction market webinar was that caution should be applied to any outlook for the construction sector this year.
“A weakening macroeconomic outlook and geopolitical challenges look set to continue to cause turbulence globally, with inflation, supply chain issues, and natural catastrophes creating uncertainty. around treaty conditions and the demands of the reinsurance market.
“While that may be an uncomfortable message, there are some green shoots of new and re-entering capacity within the market. Construction demand is still good and, overall, the sector has seen improvements in terms of profitability.
“For more detailed analysis, I would encourage interested parties to read the report in full, and to keep up with the very latest market conditions as experienced by Marsh Specialty’s global construction practice leaders and their views and opinions, I would strongly recommend registering for the next market update webinar.”