The construction insurance market is in a state of transition from a market that has seen generally stable or declining pricing for over a decade to one in which prices are generally rising. This is being driven by:
- Changing underwriter appetites.
- A reduction in available capacity from specialist construction insurers.
- A series of losses.
- Insurance market conditions more generally.
The US builders’ risk market, like the global one, has continued to firm. This is mainly due to increased underwriting discipline and poor claims experience.
Although capital remains available, underwriting continues to be disciplined and capacity is selectively released.
In the current market, insureds need to establish clear objectives around their insurance program and be laser-focused on their targets, have comprehensive underwriting information and allow more time for the placement process.
Below Sedat Kunt (US Construction Property Placement Leader) and Alistair Urquhart (Global Head of Construction Placement) provide an overview of the insurance market conditions which are being faced by the construction industry, within the region and globally, how they expect them to change and what clients can do to minimize the effect of the changing market.
Please download the documents to access more in depth analysis for each of the key construction insurance lines.