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, according to global insurance broker and risk advisor Marsh. 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.
To learn more, download Marsh’s US Construction Insurance Market Update.