Construction companies face a variety of acute challenges both at a global and regional level, according to the latest Market Update webinar by Marsh’s Specialty Construction practice. The update also highlights opportunities based on recent construction industry insurance market and risk trends in Asia and beyond.
A weakening macroeconomic outlook and geopolitical instability look set to continue to cause turbulence globally, with inflation, supply chain issues, and natural catastrophes among the main issues being faced in multiple regions.
In Asia, insurance prices and terms remained at a higher level at the end of 2022. Conditions have stabilised for most sectors within construction, except for petrochemicals, where several high-profile construction and operational losses have led to a tightening of pricing and coverage.
Amid this economic outlook, Marsh’s regional leaders reflected several universally consistent themes across the regions:
Underwriters, already maintaining strict underwriting controls and discipline, are now being more careful when assessing projects and deploying capacity.
More updates and insights on capacity available in the full report.
Emphasis is being placed on underwriting guidelines to ensure they are strictly followed and subsequently, underwriters are reluctant to review risks that may have any ESG-related challenges.
More updates and insights on ESG available in the full report.
Rising procurement lead times and costs are impacting sum insureds under their policies as well as requiring companies to give further consideration to policy periods.
More updates and insights on supply chain disruption available in the full report.