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:
The construction market started transitioning in late 2018 with 2020 being the second consecutive year of increased terms and conditions.
The uncertainty means it is more difficult to plan for future projects, especially large projects where insurance costs can make up a significant part of the overall budget.
The changing market means clients should reconsider which risks they want to transfer to the commercial insurance market and align their risk appetite and transfer strategies.
Below Maissa Bachnak (Placement Leader, Marsh) 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.